The great thing about making investments in real estate is that there are so many different options. But what is the right choice for you given all of the talk about an upcoming recession in 2020? Is buying a condo a good investment? It could be a great investment in certain circumstances, but not the best choice in others. There are pros and cons to any real estate purchase. Condo purchases are no different.
𝗠𝗮𝗶𝗻𝘁𝗲𝗻𝗮𝗻𝗰𝗲: One of the main selling points for a Condominiums is the fact that there is minimal to no maintenance required. You as the owner do not have to roll up your sleeves and cut the grass in the driveway.
𝗔𝗺𝗲𝗻𝗶𝘁𝗶𝗲𝘀: Most condominiums have at least a couple of amenities available within the building. Basic amenities include 24-hour security and a swimming pool. If you like swimming but don’t want to deal with the hassle of owning a private pool this might be appealing to you.
𝗣𝗿𝗶𝗰𝗲: Condominiums are usually sold at a lower price than your average properties. Although, there are some exceptions depending on the area and exclusivity. This, however, makes it much easier when it is time to sell.
𝗩𝗮𝗿𝗶𝗲𝘁𝘆: Contrary to popular belief, all condominiums don’t have the same cookie cutter and look alike. In fact, most condominiums pride themselves on the uniqueness they all have. There is always a place that is appealing to everyone!
𝗥𝗲𝗻𝘁𝗮𝗹 𝗽𝗼𝗹𝗶𝗰𝗶𝗲𝘀: You need to get familiar with rental policies if you plan on investing in a condominium. The reason being, any condominium management can enforce their own rules and regulations. For example, they might have rules regarding rental policies. Some condominiums might not want to dilute the number of owner-occupants in the building.
𝗙𝗲𝗲𝘀: As great as having convenient amenities, not everyone wants to pay a hefty price for them. Do take note that this is an additional fee apart from the interest and tax payments you make.
𝗖𝗼𝗺𝗽𝗮𝗿𝗮𝗯𝗹𝗲 𝘀𝗮𝗹𝗲𝘀: If you want to resell your condominium, you might not get to squeeze the most out of your investment profit due to comparable sales and listing in the area. At a time, there will be plenty of sales for the buyer to compare and contrast on and it is difficult to stand out and make an impression.
𝗣𝗮𝗿𝗸𝗶𝗻𝗴: Lack of parking space is a common issue when it comes to condominiums. Most of the time an apartment comes with only one or two parking spaces and this becomes an issue when you have multiple guests over.
At the end of the day, to answer the question “are condominium investments a smart choice?”, it depends on so many factors. It is absolutely worth it to take the time and really understand what you might be getting into. Depending on your financial goals and market compatibility, condominiums can be a good investment for you.