Condo life comes with its perks. From community living to walkable urban areas, condominiums are a great option for first-time home buyers and people looking to enjoy home ownership without extensive upkeep. That is why they are constantly in demand. Today we are going to explain to you the benefits of investing in a condo are.
Higher Resale Value: Condo ownership is a great opportunity to make your money work for you. Condominiums normally appreciate at a rate that is almost consistently higher than the inflation rate. One can easily Buy a condo unit low and sell high-and you can generate large profit. You can even consider renting it out for a continuous cash flow of income.
Lower Initial Costs: Buying a condo is a very affordable option. Condominiums nowadays are less expensive and are less time consuming. One does not need to pay all the total contract price or even put down 20% immediately. Instead, condo developers only ask investors to pay a certain percentage of the total contract price, usually at 20% (serves as down payment) which is often in deferred/dividend payments over 24 to 36 months.
Less Risky: Condo investing is considered a less risky area of real estate investment and is an excellent choice for more risk-averse investors. When compared to investing in stocks or bonds, it has comparatively lesser risk. It is ideal for long-term investors, since the longer you keep it, the higher your Return on Investment should be.
Good Exit Strategy & Legal Protection: You’re more liquid because resale demand for condos is higher, which gives investors better exit strategy. Individuals investing in condos are protected by the By-Laws and regulations set up by the condominium association. However, sometimes the very people entrusted to protecting you abuse the system. You must do your due diligence on every HOA manager and board members.
Fewer maintenance and repair responsibilities: Condo investing is extremely convenient as many of the management and maintenance problems are taken care of by the HOA which enables investors to focus more on the investment facets of the property and not to worry about maintenance and upkeep of the exterior or any of the capital improvements.
Enhanced security: Most condo buildings have secure entrances and surveillance cameras, and some even have security guards or door men who keep an eye on the property.
Voting Rights for Selecting Management Board: As an owner you have voting rights and can be elected to the board of directors. Hence, you also have a say in the running of the condominium corporation. In return, your interests are looked after by the elected condo board, who help guide the day-to-day management of your building.
Access to on-site amenities: Most condos have community spaces like a pool, rooftop terraces, sauna, or a fitness center, which you can use without worrying about the upkeep. Some condos even have tennis courts or spas! These are the amenities which one otherwise might not be able to afford.
Great Sense of Community: Most condo buildings and complexes have communal spaces, such as kitchens or rooftops, where residents can get together and get to know one another better. A community may have a wide range of social, entertainment and recreational activities, like fun events for residents such as movie nights, game nights, wine tastings, cookouts, etc.
Proximity to Commercial and Recreational Zones: One significant benefit of condo living is that condo buildings are generally located in or near downtown regions, providing tenants with easy access to neighboring entertainment and commercial sectors. This means being able to walk to work, restaurants and bars, public transportation, significant attractions, and a plethora of events.
There are a lot of reasons why owning a condominium is a smart move. Whether you are planning to acquire a property to live in or to use it as an investment vehicle, owning a condo is one of the wisest decisions you can make. Knowing more about the market, the benefits, and planning for your future does not only put you in a better position; it also gives you the edge you certainly need.
Daniel Borrero, Jr.
Real Estate Investor since 1989.