Diversifying The Property Investment Portfolio With Condos
There are many benefits to investing in a condominium. Condos are units in a multifamily housing development. Often compared to apartments, the biggest difference is that the individual unit is owned by the individual and not just the complex. Persons purchasing the units pay mortgages and eventually own the own the unit outright. When looking at one’s next real estate venture, these units may make a great investment.
When located in the right area, these units can appreciate rapidly in value. In addition, choose a unit in the right location and expect to collect top monthly rental problems. In many major cities, these multifamily homes are one of the highest desired commodities. Find a unit to purchase in the right location (which does not have to be in your own backyard) and the investor just purchased a goldmine.
Expect to pay less than one would normally pay for a single family home. While the unit may be located in an area of high property values, most are less expensive than traditional homes due to the fact that maintenance costs are shared. Investors will find that the units still rent for approximately the same amount as a single-family home costing much more.
Restrictions in place are enforced by a homeowners association that help to keep the value of each individual unit high. With these restrictions, the neighbors will not be able to keep a wrecked car sitting in the parking lot or broken washer on the front step.
Often the complex will offer amenities that are not found in single family homes of similar values. For example, there may be a recreation room, exercise room with weight machines, tennis court, swimming pool and spa. The owner of the individual unit has no responsibility for the repair or maintenance of these facilities.
Since the plumbing is a part of the common area maintained by the homeowners association, clogged or broken pipes are maintained by the HOA and not the unit owner. In addition, all lawn care and landscaping are also included. These features make the home an ideal rental investment or a good choice for couples that will only live in the home part of the year.
Owners of units that live only part time in the unit as a second home, will find that if the investment is in the right area it may be rented as a vacation home for $1000 or more per week. Units located along the ocean or in resort areas are usually the most lucrative as vacation rentals.
Many complexes offer greater security than is found in single-family homes. In some complexes there is a locked gate that only grants access to unit owners. In others there may be security personnel that help to keep owners and tenants safe.
When looking to diversify one’s real estate portfolio, condos can provide a good investment choice. As with any other investment, it is wise to diversify. While buying a condo in a resort area may require a larger initial investment, buyers can expect a better return on their dollar.
Looking for lofts for sale in Toronto for affordable prices? We can help you find Toronto condos for sale in areas ranging from the downtown lakeshore to midtown GTA. Give us a call today.