3 Reasons Why Condominiums Are The Future Of Profitable Real Estate Investments
A condominium is defined by Oxford Languages as “A building or complex of buildings containing a number of individually owned apartments or houses.”
This sounds just like an apartment, right? Technically, it’s not.
Real estate experts say that the big difference between the two is ownership.
When you live in an apartment, you pay your rent monthly and are expected to follow the rules stipulated by your landlord/lady.
When you live in a condominium, you pay monthly ownership dues but you get to do as your heart desires.
As expected, this much freedom comes at a cost, but owning a condominium allows you to build equity and benefit from tax breaks in the future.
While an apartment is a necessity, unless you plan to own your own home in the future, it’s an annoying liability as well.
But we’re not here to talk about liabilities. We’re here to talk about assets. If you’re interested in building generational wealth, the following will help you get your foot in the door:
- Condominiums Are More Affordable Than Single Family houses
Studies show that the median price of a condo was $266,300 in the last quarter of 2020. Conversely, the median price for a single-family home was $299,900.
That’s a substantial price difference.
2020 has shown us that money is not to be taken lightly, so if you’re looking to buy a house, it might be better to buy a condominium.
Numbers don’t lie.
2. Condominiums Can Be Bought Pre-Construction
Many contractors make condominiums available for purchase pre-construction. While it’s a great way for them to have the funds needed to cover building needs, it also allows you to get a condo for a lower price.
Studies show that when you commit to a pre-constructed condo in its early phases, you save money in the long run.
For a house, you’d have to commit a lot of time and resources to build it and then stand all the maintenance fees without the option of a warranty.
Some pre-constructed condo contractors offer you a 1–7 year warranty on the building so that you don’t have to bear the burden of eventualities alone.
3. Condominiums Make Great Apartments
Condominiums are cool to live in but renting makes it a viable asset. Condos are usually found in prime locations. As such, many are willing to pay top dollar to rent them for various occasions and gigs.
Depending on your condo’s location, you’re likely to have clients who rent yearly.
Regardless of how you twist it, condos are quite lucrative. However, without proper guidance, the best investment opportunities can turn sour.
Most investors rely on a construction company to acquire their condos, so the most critical aspect of the condo business is finding the right contractor to work with.
Before you launch into the deep and have to learn through experience, do your research and acquaint yourself with the best contractors in the business.