Buying an Assignment requires significant "cash" on hand... but if you have it... this is the best way to buy. The #1 reason is that you know what the current market value is and you are buying well "below" it. This is getting cash in your pocket for having cash in your pocket! Like the "Rich people getting "Free stuff" when they can easily pay for it".
HOW DOES BUYING AN ASSIGNMENT WORK?
Just say you are buying 1BR + D unit at Metrogate Solaris Condos having a market value of $275K.
When this unit is available on the open market, anyone can can buy it with 5% down. This will require that you have $13,750.00 in cash plus a little more for closing costs. So around $15,000 to $18,000 to buy this brand new unit.
When buying an assignment that $275K unit will be available for around $250K. To buy it you will need the difference between what the original purchaser paid for it 3-4 years ago plus any downpayment they've paid to the builder. Here is an example.
Original Price: $225K
Assignment Price: $250K
Market Price: $275K.
10% deposit given to builder: $22,500
So to buy the assigment you need: $250K - $225K = $25K
plus 10% deposit given to the builder: $22,500
plus any additonal deposit at occupancy (here it is 10%): $22,500
So to purchase the assignment you need total cash on hand of: $25K + $22,500 + $22,500 = $70,000
If you have $70,000 you can buy the assignment and be making $25K in market equity. Plus your monthly mortgage payments will be lower as you will have 20% downpayment into your Condo and you'll be saving yourself CMHC insurance fees.
That is why they say "money makes money"... because if you have it, you can do good things with it for yourself.
So if you are looking to buy, sell or invest in the Metrogate towers...
REGISTER at: http://metrogatecondosforsale.com/
and let Team Jagpal help you.
Jas Jagpal, Broker 647-272-6629 jasjagpal@gmail.com
A maximum of 2 draw tickets for every trade in real estate. (Referral ticket & Seller ticket ; Referral ticket & Buyer ticket). 1 draw ticket for every trade in real estate where there is no referrals. (Seller ticket or Buyer ticket). You have 1 in 4 chance of winning an ipad2. Draw tickets to be given to all Buyers, Sellers, Leasers, Assigners, Referrers that result in a trade of real estate starting March 21st, 2011 to Aug 31st, 2011. Draws will be held on Sept 4th, 2011. Winners will be notified by Newsletter, E-mail and by phone and agree to have their name published on Jas's print and web marketing material.
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© 2011 Jas Jagpal, BROKER, BSc. York University
