In today’s economic sphere, there are a number of ways by which you can make your financial assets grow. One of them is by investing in real estate. But with the myriad of options in this sector, you will need to study and weigh each option to find the one that will best suit your purpose and cash allotment.
If you’re breaking into the real estate investment scene for the first time, you can opt for one that promises a fast-paced turnover and is perfect for a bustling city environment. That said, you may want to look into buying a condo.
But first, how exactly is a condo different from other residential properties? A condo is defined as a building or complex of buildings containing a number of individually owned apartments or houses. Size-wise, condos are typically smaller than houses but bigger than most apartments. You can purchase and own a unit in a condominium building but all other areas beyond your unit are shared with other condo owners.
Invest in a condo for the following reasons:
As one might expect, condos come in various shapes and sizes but are generally of a smaller form than most townhomes. This means that condo units are easier to maintain, particularly for individual residents or small families. Ease of use is one of the many reasons why condos function best in busy metropolitan areas where people are often headed off somewhere but would still like a comfortable place to call their own.
Access to amenities
Condominiums usually have a shared space where residents can enjoy practical and recreational activities, such as pools, gyms, parking lots, and even clubhouses.
Proximity to central hubs
Aside from the amenities that are often found in the same building or complex, condos are normally a short ride away from what the city has to offer. This saves you the hassle of driving in and out of the city. You also spend less on transport as you can simply walk to your desired locations which will usually just be a few blocks away.
One of the conveniences that condos offer is their doorkeepers and security officers that ensure the property is private to only its residents and their guests. Another pro of sharing a wall with neighbors? There are always people you can approach for anything from simple small talk to borrowing kitchen utensils. This is especially reassuring for people who live on their own.
Buying a condo unit is often easier on the pockets than purchasing a single-family home. Upkeep is also more affordable since you only have to focus on your space. While there are fees for the condominium owners’ association, since the property is shared with other unit owners, it’s not as daunting as having to manage a property on your own.
The promise of future profit from your investment
There are those who see a condo as a commercial investment; that is, to use for income generation. The most common means to do this is by putting up the unit for rent. While seen as a short-term source of income since the typical turnover of lessees happens yearly, it’s relatively easy to find new tenants who may not yet have the means to buy a place of their own yet who desire the convenience of living within the city limits.
Nevertheless, holding on to your unit and enjoying the perks that come with condo living is still a great option. It comes with the promise of making a sale in the future with handsome returns on your investment. Just make sure that it’s well-maintained and is located in an easily accessible area.
Tips for buying a condo
Whether you’re investing in a condo for personal, rental, or reselling purposes, here are some tips to keep in mind:
- Carefully consider your next steps. Despite the lower price tag, maintaining any sort of real estate property still takes time and effort on your end. Know your intention for the investment, so your decisions will always be guided by your goals for the property.
- Cover your bases. There’s a fine print to everything. Since a condo unit exists within a shared space, you should always keep abreast with developments on the property and how the condo owners’ association is putting their budget to use. Should you decide to sell your condo unit in the future, it would be smart to know how the building or complex has been maintained, on top of the efforts you made on your own space.
- Check in with the neighbors. Even before purchasing a unit, it’s a good idea to meet the condo’s current residents and get to know both them and the property. At the very least, you’ll know what your potential neighbors will be like once you move in. Moreover, it’s always good to see friendly faces.