Investment properties come in different shapes and sizes and as an investor, you can make a profit of real estate business. One such aspect of this business is investing in a condo.
Why are condos a better investment option?
A typical condo is much less cheap to buy when compared with a family house/unit. There are several other things as well before investing in a condo such as HOA fees and the cost of living. Which is why estate investors usually spend less on buying condos.
Can be a source of rental income
As you rent out your condo you start getting rental income. Over time the appreciation of your property also increases. This is a typical approach in markets, where the demand for condos is really high.
You can look for affordable condos on Ola EC at affordable prices and prime locations.
This is one of the best reasons why condos are considered as good investment options. As an owner, you are not responsible for maintaining the whole building and nearby premises. Your monthly condo fee will take care of all these things for you.
There are several other aspects that you should consider before buying a condo that you should keep in mind.
Homeowner association fee (HOA)
As most housing amenities offer several facilities like Gym, swimming pool, security system and more, you might have to pay a certain amount to HOA as a building member to use these services. So you should choose carefully, if you want all these luxuries at an extra cost or not.
There are several rules that home association might impose on you as a tenant. You should always check about these rules before your investment. As some of your potential clients might not be comfortable with all these rules. You just need to review all these rules so that you don’t face any problem in the future.
Financing the investment
Getting a loan to pay for your investment is one of the common ways to buy properties. If you are buying condos as rental investments make sure that you’re able to get a tenant as soon as possible so that you can pay off your debt on time without any penalties.
Besides all these you should also consider:
As an investor, you should consider the location of your condo really seriously. You just can’t deny the fact that the location of your condo plays a really important part in rent and other costs. Any good location would definitely provide you with profit over time.
Keeping in mind the location of your condo you can go with a traditional rental plan or you can list it on Airbnb and such. This way you can optimum benefit from your investment.
You should always think about the fact that your maintenance cost must be lower than your rent.
As you get yourself a condo you can start earning from it. As soon as you are done with all the legal process of land transfer and payment of taxes. You can look for a tenant from that moment and with the tenant you get a regular source of income which will help you with your down payment and loan money. You even get tax benefits for that.