Condominiums have a very wide price range, making them often more affordable than traditional single family homes. Are you considering a condo investment property? Read on for five condo investment tips that will ensure your condo is a worthwhile investment.
- Seek out an experienced realtor – Perhaps one of the most important condo investment tips, the right realtor has the potential to make or break your condo purchase experience. Work with a realtor who understands the condo market and who understands commercial real estate. Your realtor can help you determine the difference between a good condo investment property, and a bad one. When choosing a real estate agent, make sure you choose an individual you are comfortable with talking to and problem solving with on a regular basis.
- Consider ALL costs before purchasing – When buying a condo as an investment, consider all costs before making a purchase. The general idea behind converting a condo purchase into an investment is that the investment will ultimately make you money. Consider operating expenses, fix-up costs, and geographical location. New luxury condos may be a larger initial investment, but cost you less in terms of repair and updates.
- Research the areas you want to buy – Just like purchasing any property, researching the area will help you to make a more informed decision about your purchase. Focusing your condo investments in one given area allows you to become an expert in property values, properties that are for sale, or new investment opportunities. Condominiums are often for sale in warm areas that have pleasant weather all year long. This makes it easy to purchase a home in a desirable location. Whether you are investing in a luxury penthouse in Miami, or a low key town house in upstate New York, research is the key to a successful purchase.
- Learn about life as a landlord – One of the most overlooked condo investment tips is understanding what it means to be an effective landlord. Are you a first time landlord? Renting to others is a drastic difference from owning your own property. Maybe you’ll have a terrible tenant, or maintenance issues. Condominiums are typically low maintenance in terms of lawn care and landscaping, but maybe yours won’t be. In order to be adequately prepared, spend some time understanding your responsibilities as a landlord. For a detailed list of responsibilities, consult the Residential Tenancy Act, or other condo investment tips resources.
- Separate yourself – The condo industry is competitive, which means all of the condo investment tips in the world will not help you to succeed if you are not competitive with peers in the industry. Make sure your property has one unique feature that distinguishes it from the rest. Whether it is an LCD TV, massive kitchen, or a personal parking space, make that feature known when marketing your condo.
Investing in a condo is an important decision that requires both research and careful planning. Consult condo investment tips, realtors, the Internet, and friends to help you make the most informed decision possible.