Investing in Condos in 2020
Real estate investment is one of the best forms of asset classes with a promise of great returns. In particular, condos are one of the best properties that you can invest in because the demand for them has continued to grow. This isn’t really surprising since condominiums are typically built on a great location with modern amenities that attract a lot of renters. Investing in condos is definitely a good opportunity to explore in 2020 — provided that you abide by the best practices.
Why Should You Invest in Condos?
Investing in a condominium unit requires a large amount of money, but it’s worth the risk since it allows you to enjoy many perks. Whether you invest in condos in Barrie or any other promising location, here are some of the benefits that you can enjoy:
- Condos have the potential to yield a substantial profit. Renting out your condo allows you to earn short-term and even long-term income. If you choose a condo that’s near schools, offices, and shopping centers, you can capitalize on its great location to attract renters and keep a steady flow of income. Even if you opt not to rent the property out on a long-term basis, you can still earn by targeting local tourists. This can create a positive cash flow that will make your investment worthwhile.
- Condos require low maintenance. If you invest in a new condo unit, you won’t have to deal with the hassle of repair and maintenance for the unit since the condo board will take care of everything for you. As long as you pay the maintenance fees on time, you can keep your unit in good condition without going through a lot of stress.
- Condos are less expensive to invest in. Condo units are typically cheaper than a house and lot and other types of real estate properties. This is why a lot of beginners choose to invest in condos as a starting point.
- Condos are easy to market. Many condominium buildings provide tenants with access to modern amenities that can improve their quality of life. As a result, you can easily attract potential tenants without having to do heavy advertising.
- The demand for condos will continue to rise in the next few years since it’s fueled by the high urbanization in major cities. By getting a condo today, you can be at the forefront of the condominium revolution and make the most of your investment.
Condo Investing Tips
Now that you know the benefits of investing, it is time to delve into how to go about choosing the right condo. Take note that no investment is guaranteed to bring in profits. But, with the right approach, you can ensure that your condo will be a sound investment and that it will generate positive cash flow for you. Here are some tips to help you get started:
1. Choose a good location.
When it comes to real estate investing, location is the key. Take some time to research the best market and location to invest in. When choosing a location, make sure that it is accessible by public transportation. You should also check the public amenities within the area and ensure that there are shopping centers, schools, shops, and restaurants nearby. Is your condo near a popular tourist spot? You can most likely rent out the property for a short-term period. This will give you more flexibility when it comes to renting your condo and allows you to lower the vacancy rate.
2. Check out the building’s amenities.
The amenities available in the condo are some of the factors that will bring in renters to your property. Some of the amenities that are available in modern condos include parking lots, swimming pools, fitness gyms, conference rooms, and even co-working spaces. These amenities should be available for your tenants to use no matter what their lifestyle may be, and they must provide your renters with great money.
3. Choose a condo that promises a high return.
It is important to invest in a profitable condominium as it will help you generate a high return. To know if a condo is profitable, take the time to study its features, such as the floor area, the number of rooms and bathrooms in each unit, and the number of parking spots allotted to each tenant. These features will enable you to charge the maximum amount of rent on the property. You can work with an experienced real estate agent to find a condo that meets all of these criteria.
4. Capitalize on the generational culture.
Many millennials and Gen Z people prefer living in a condominium these days since it provides them easy access to various career and socialization opportunities. With more people choosing to live in the big city, this will cause a rise in condo rental demand, which you can capitalize on by investing in a condo today.
Real estate investing, such as condo investing, can be a bit overwhelming. If this is your first time to invest in a condo, you might understandably have some apprehensions. But, by using the right strategy, you can avoid any pitfalls and see your investment grow.