While many people invest in stocks, a new car, or property, some opt to spend their hard-earned money on rental homes and residential condominium units. The only difference here compared to the others is that you’re not expected to use the purchase you bought yourself; instead, you’ll lease it for single-family rentals (SFR).
Much like any investment, a residential condo is a significant venture. And perhaps you may still be a bit hesitant about this investment. In that case, here are a few reasons and advantages to putting money into a condo either for yourself or possible tenants.
1. Stress-Free Property Management
The majority of all condominiums in big cities have staff and a management team running the place to offer assistance to residents that may need them. So, you, as the investor of a residential condo, don’t need to tend to your tenants yourself.
In addition, in most cases, you also don’t need to be there in the building physically. There are people assigned to manage the building’s maintenance and its tenants’ safety. Though, if you invest in a condo, it’s also vital that you check in from time to time, especially if it’s vacant and waiting for a new occupant. Or, you could employ the help of professionals, like condo management in Toronto, to oversee your unit until it’s ready for occupancy.
2. Chance To Earn Significant Profits
Investing in a condo can be an excellent way to generate passive income. Residential condo investments can be an ideal start for first-time entrepreneurs looking to earn more money while having a day job and some part-time work on the side. You can buy the unit at a low price, then sell it higher for more profit. And compared to leasing out a home, renting out a condo could lead to a continuous cash flow for you.
It can also be a way for beginner real estate buyers or investors to start a business without the hassle of looking for a large property and spending too much money. You can grow your wealth throughout the years and learn the ins and outs of the business and the real estate industry, making investments while you’re still early in the game.
3. Condos Are In High Demand
With more career and education opportunities appearing in cities, many individuals and nuclear families will likely relocate to urban areas to maximize them. With that, they’ll need somewhere permanent to stay to work in these cities. And for those who can’t afford a house and lot yet, a residential condo unit could be their best option since they’re considerably cheaper than single-family homes.
In addition to leasing the unit for permanent residence, you can also rent it as a vacation home in the city or lodging for professionals on a business trip. Some condominium units are also made into ‘kiddie condos’ for university students who find in-campus college dorms too expensive.
4. Pre-sale Advantages And Promotions
New condos often offer more affordable pre-sale prices for potential investors and tenants looking to find a place in the city to live. When you invest in a residential condo during this period, you’re likely to find one that fits your budget or goes below it, landing you tremendous savings.
More so, residential units sold while still under construction have several promotions like flexible payment terms and huge discounts upon launch. Condo down payments also tend to be more affordable compared to paying for a whole house.
5. Resale Value Appreciation
When it comes to significant investments, one of the best ways to get the most out of your money is to think long-term. Hence, if you’re planning to invest in a residential condo, you should do the same.
To start, condos can be a valuable asset with an above-average return on investment (ROI), especially if the units have high appeal amongst buyers. It’d be good to note, too, that most condominium buildings are often built in locations with fantastic views and convenient proximity to malls, schools, offices, and public transport. As such, condo units have great value for money. And as long as trusted developers constructed the building, you can rest assured the property is maintained in tiptop condition and is expected to last for many years.
After a few more years, the condo you invested in could eventually be sold for a higher price. So, if you plan to sell it and focus on other ventures in the future, like savvy Gen Z entrepreneurs, you can get good money for it. After all, many are looking for a place to live. Therefore, you might close a deal faster than you might think.
Investing in anything of value requires both mental strength and financial commitment. While some investments depreciate over time, a residential condo is less likely to follow the same suit. Real estate can be a challenging game, but smaller and more affordable condos tend to attract more potential buyers. You’ll get good money in the long run if you know how to play your cards right.