If you’re new to the world of real property investment and want to dip your toes in this area, being a condo investor might be the best first step. There are several reasons why investing in a condo unit (as opposed to a single-family home) is good for beginners.
Less repair and maintenance costs
Maintaining a condo is relatively more convenient and a lot easier than overseeing the upkeep of a single home. Condo maintenance is covered under the association fees that you pay for each month, so you don’t need to worry too much about your unit. Besides, you are probably buying the unit brand new so you don’t need to focus on repairs just yet.
Because you don’t need to spend too much on maintenance costs, the overhead expenses for renting out your condo will likely be lower, too. In a single home, you will need to oversee the maintenance as the landlord. In a condo, there is a building maintenance team to do this job for you.
Condo living is an attractive option for young professionals and young families. This translates to rental and leasing opportunities for a condo investor like you. If you choose your first investment property wisely and with the help of real estate experts who can steer you in the right direction, you can own a unit in an up-and-coming neighbourhood. There’s also a high resale demand for condos because they offer a range of amenities such as gyms, spa, sports facilities, etc.
Lower cost of ownership
The barrier to entry to condo ownership is often lower compared to other types of properties. For starters, if you’re buying on a pre-selling rate, the deposit structure and terms for a down payment are much friendlier. You probably don’t need to pay the 20% down immediately.
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