It is one thing to relax at ease in a beach facing condominiums, popularly referred to as condos, while on vacation and to own one. The prospect is just as attractive as it sounds. It will not only let you visit the beach as per your will but also serve as an income source by letting out the property when you are not there.
Another standard set of condo buyers include first time home buyers. Ordinary houses need a lot of repairs, and you have to negotiate with a substantial amount of yard work. Additionally, often they are more expensive too. The following information will help you discern if buying a condo might be an excellent opportunity for you.
Don’t Opt For A Double Mortgage
Don’t put your finances to too much strain. This is the very first piece of investment advice for you. While buying a condo, don’t buy the property by burdening yourself with a second, additional mortgage. You should only invest in a condo if you don’t have any existing home loans.
Invest In Local Properties
Suppose you are ready and have just started on your career as a real estate investor. If so, you want to start by buying a condo located somewhere in your current neighborhood rather than in a far-off place. The near real estate site location will make it relatively easy for you to keep up with property screening requests and see this condo you’re eyeing any time you want. It will also help you take care of your condo property once you have bought it, and as your experience handling real estate properties builds up.
It’s Worth It
As a summary answer to the article topic, yes, condos make up a great investment option. You need to refrain from buying properties that are a little better than junk, or the management is weak. You can find plenty of web resources that will let you identify junky condos with management issues. By doing the due research and required reading, you boost your chances of picking out a beautiful flower hiding amongst the weeds.
If the price tags or traditional family houses have seen you sulking, condos provide a fresh breath. While they are still a very costly purchase, they’re significantly cheaper than a family house. It will typically cost you several tens of thousands of dollars less to buy a condo.
Just consider the following figures found out by the National Association of Realtors experts. In May 2019, the median sales price of a condo was $257,100, while single-family homes cost $280,200. That makes the average condo $23,000 cheaper than family houses.
Consider The Owner Occupancy Rate
Another crucial thing you should do while measuring a condo property for investment potential is the owner-occupancy rate. This refers to the number of owners living there vis-a-vis renters. In case the owner’s presence is over the majority of 50%, in all probability, investing in the condo is a good idea. This investing wisdom has its basis on the boost in financing options and the chances of getting a mortgage for high owner-occupancy rates.
The last thing you want to consider while examining the investment potential of a condo is asking yourself whether you would want to move there with your family. If the answer is not affirmative, you should know that it will be a no for many renters.