Investment in a condo properly can result in stellar profits, as so is the case with any type of investment. Location and market situation also matter a lot in such case and play quite a major role in deciding upon your profit share. However, for the beginner investor condos are great vehicles to invest in the real estate. And that’s more since we can find several boards in our city saying ‘North York condos for sale’. That is also the case because:
- You typically buy it brand new, so fewer repair costs.
- You pay the condo charges, so maintenance and upkeep is not your problem.
- Urbanization is gradually increasing, which implies condos will be in high demand.
- You have more liquidity in the investment since the resale demand from buyers is quite high.
- Newly built condos don’t have a rigid deposit structure, so you need not make hefty deposits immediately.
Yep, so that does explain the ‘North York condos for sale’.
More Advantages Of Investing
Condo investmentincludes far more perks than single-family homes. This makes them ideal for investors who wish to seek a greater value of the return. Further advantages are: Renters feel a sense of community You can get an amazing resell price or can also get a monthly rental from the tenants. Renting your condo is economical because of the shared maintenance costs Homeowner regulations have made the management of condo properties for more easier for investors
Some Disadvantages Of Investing In Condos
It is worth noticing that condos could also have a potential downturn as well. Like: ·
You can get difficulty in getting bank loans
Questions to be asked before Investment in a condo
Location is one of the many things you need to consider while buying a condo. It’s best to go through a few fundamental questions before you invest your money. Here’s a few for starters: ·
How long do are you planning on holding onto the condo? ·
Info on the lender’s financial requirements? ·
If the condo lies within an area with some amazing rental potential like being near a college?
A three-bedroom condo along with two bathrooms with a price tag of $100,000.
If we assume rent to be a $1200 a month, and taking into account other expenses; repairs ($1000), property tax ($1000), insurance costs ($200), vacancy allowance to be paid ($120), the HOA fees ($200).
Single Family Home
three bedrooms, two bathrooms, a single-family house with a listed price tag of around $150,000. Local again around $1200 a month.
Factors affecting expenses:
Property taxes ($1500), insurance ($500). Now as you are responsible for maintenance, you can set aside about $2000 cash reserve every year.
$7400 per year with a annual return 4.93%
This is the reason exactly why I like to my investment in condos. I’m not asking you to go out in the market to buy one, given the return values, it’s worth your consideration since an investment with factorslike above is quite good actually. I think we should not just laugh away on a sign like ‘North York condos for sale’ and rather make use of their money-making potential and make better investment choices