INVESTING IN CONDOMINIUM

Investing in condominium has few characteristics that made it an appealing investment especially to those novice investors. Normally condos are priced lower than your typical common family homes and the barriers of entry are normally lower which means investors can start putting their money to work as soon as possible.

Condos are also easier for you to maintain because a condo landlord will only ensure the unit is in livable condition during handover of the unit. Legally, the tenant is responsible of the maintenance of the unit.

The preference for investment in condo are more towards rental return because rental return can be used to substantiate the installment commitment for the loan outstanding. There are many advantages when we talk about condo investment and with these advantages also come along these problems that associated with investing in condos.

If you ever consider to start investing in condos, then here are few of the pros and cons you should consider before starting to invest.

Pros of Investing in Condominium

1. No maintenance – you will only need to think about your target market and condos market typically made up from the first time buyers who aren’t ready for home or buyers who are seeking to downsize.
2. Amenities – every condos features amenities in either one shape or another and it might range from public swimming pool or 24 hours security service. The better the amenities will make it easier to justify the monthly charges.
3. Price – frankly speaking normally condos are offered at lower price than your average single family home. It makes them easier when the time comes to sell them.
4. Variety – there are a lot of market out there where the properties looks very much the same but with condominium there might me a slight difference between one and another. However developers pride themselves through the perception that some condos might offer them with something a bit unique.

Cons of Investing in Condominium

1. Rental policies – When considering condos as your investment, you need to be familiar with condos policies. There are certain rental policies that you may abide because every complex has their own set of rules to be followed.
2. Fees – Having a great amenities also comes with the bad side, as your owners might not afford to pay for them and this might make it more difficult for the owners to sell off their own properties.
3. Limited market – condos might whole certain appeals but only to some buyers and this might take your marketing up to a whole new level to target these niche groups in the right way. As the more limited your markets are the more difficult for you to sell your condos.

Conclusion:

However if you look from the investment perspective, normally people will be more concern on getting back their returns from the investments rather than struggling forever to sustain the payment of the installment. Hence they would be more incline to invest in a condominium which is easier to rent out, and use the rental income to substantiate the installment for the housing loan.  There is never the right time to buy property for investments, whether you are looking at it from human life-cycle or career life-cycle, different people have their own advocates on when they should buy property.