With so much market volatility, it’s essential to diversify your investments to give you the financial security you need. One way to add to your portfolio is by investing in a condominium unit known as Condos.
Maybe you’re not an investor, and you’re looking for ways to find a place to live that is closer to where you work. Inveting in condos may be the correct choice in both these cases.
The Benefits
First, you’ll be reading about the benefits that condos offer.
- Convenience
Of course, the location primarily benefits you or your tenant when you stay at a condo. You can access restaurants, groceries, pharmacies, and public transportation in just a few minutes. This convenience is the main leverage you have in increasing your investment.
Urban centers are also centers of employment. Because you get easy access to public transportation, getting to and from work will be easier than commuting to the suburbs.
- Maintenance
The convenience of condos doesn’t just benefit your tenants. In single-family homes, you’re usually the one in charge of maintenance. That takes up your time and money hiring contractors to come in and fix the problem.
With condos, you just have to pay the monthly fee, and the Homeowners Association (HOA) will take care of the maintenance work for you. HOAs will also take care of installing the right exterior access doors and panels to ensure your utilities stay protected and have maintenance done faster.
- Amenities
Many condos have attractive amenities that can be valuable to your investment. Aside from the convenience, people will also look for other benefits they can have by living in a condominium community.
Things like grills, gyms, pools and other common areas enhance the living experience and make it easier for you to live in or rent out.
The Drawbacks
Like with all things, living in a condominium is far from perfect. For some, these drawbacks may put you off from getting a condo.
- Fees
Fees are less of an issue with resale condo units as the condo usually has a stable reserve fund ready to absorb any costs. However, with pre-construction units, the fees are likely to be less but increase over time as the Condominium Corporation seeks ways to build up its reserve fund quickly.
Increased fees can quickly cut your ROI (return-on-investment) and harm a first-time investor. If you decide to live in the condominium, you’ll see an increase in your monthly expenditures from the increased condo fees.
- Financing
Getting mortgages for condos may be difficult compared to getting one for a single-family home. Generally, they will stipulate that 50% of the condominium needs occupants, and the HOA should have a low delinquency rate.
While these are great for lenders, it assures them that you will repay the loan, making it difficult to get financing options that benefit you. Sometimes, you may get to see some “too-good-to-be-true” deals with condos, and the problematic financing options are why the prices are low.
- Renovation
Your renovation options are more limited when you get a condominium. Usually, you’ll have to get approval from the HOA board for permission, which is only limited to changes in the room. You cannot change the exterior design or patio as the HOA manages these.
With the interior renovation you can do, you can easily fit your unit into a modern Condo’s Design Trends. Fitting your condo into a trend can make it easier for you to find the ideal tenant.
Make your Dreams Come True!
Getting a condo can be an excellent way to make money, but it’s not for everyone. You need to understand the risks and rewards before investing in a property to get the perfect city experience you want. As long as you have clear goals and what your expenses will be, getting a condo will be a worthwhile experience.