The Lateral Shift: Upsizing Your Condo in an Up Market
THE LATERAL SHIFT:
How to move up from a one bedroom condo to a two bedroom condo at little or no cost.
When the condo market is hot and prices are rising at 10-15 percent year over year as they have for the past 12 months here in Toronto the conditions are perfect to use a technique I call the LATERAL SHIFT. This is the ideal time for anyone who owns a condo and wants to move up to a larger condo.
Simple! Your current one bedroom is worth $450,000 in today’s market. You then purchase a new development two-bedroom condo condo, which will be ready in 3-4 years for $600,000 and put 15% down ($90,000). You control both assets. The $450,000 condo will be $495,000 after year 1, $544,500 after year 2, $598,950 after year 2 and $658,845 after year 4. Sell the one bedroom apartment and move laterally into the two-bedroom apartment which has now appreciated from $600,000 to $878,460 in the 4 years.
I am speaking from experience as I did this from 2007 to 2010. I had a $400,000 one plus den at The Toy Factory when I purchase a $500,000 two bedroom at the Thompson Hotel. By 2010, I sold the Toy Factory unit for $545,000 and moved into the Thompson Hotel unit, which was by that time worth $650,000.
For the first time since then, the market conditions are now such that anyone wanting to move up in size can do so using this technique and with these results. I would be happy to meet with anyone who currently owns and would like to use this strategy. Please feel free to contact me at any time.
Some people may question the feasibility of this strategy but I am living proof of its viability, all it takes is your willingness to commit to it. The only way to get ahead in this city and in this market is to be smarter than the most and take action.