Many of you must be thinking of making investment in real estate sector, as a long-term investment and wondering whether investing in condos will be a smart decision.
Condos are considered a hybrid between a house and an apartment. Condos are also a kind of property and any real estate investor will be able to buy if he ever desires.
However, while investing in such Luxury MTL condos there can be many positives as well as negatives that one has to consider. In this short write up, we shall discuss about various pros and cons about investing your money on such condos.
Pros of buying condo as investment
- Condos are affordable
In general, you need not make very big investment like any home or apartment while buying a condo. A young investor who has just started earning can afford to invest on a condo without much difficulty.
- Desirable locations
Mostly the projects of condos are taken up in the downtown areas where there are easy transportation and various city amenities are easily available.
- Generate a monthly rental income
If some one is interested to generate another source of income then investing part of their savings, they can buy a condo and earn a regular monthly income without much of a hassle.
One great advantage of having a condo is that as a property owner, you need not spend anything as your monthly fees will take care of all maintenance issues.
Cons of buying condo as investment
- Homeowners association fees
Since there are plenty of common facilities like swimming pool, security, fitness centre, lawns etc. to be maintained by the homeowner’s association which is few hundred of dollars. For few people, it may exceed your budget too.
- Condos are difficult to finance
Many of you must be needing finance to buy condos, however you must know that financing of the condos is bit difficult as compared to any regular house. Also, investors have to make 20 to 25 percent of the value as down payment.
- Slow appreciation
Though investment for condos may be relatively cheaper however, the appreciation in the market can be little slower than any house. In case you want to resale your condo then you may have to wait for much longer.
- Rules and restrictions
Also, there will be plenty of rules and restriction that you have to abide by as condo owner, which may be little awkward for few investors to follow.
Should you make investment in a condo?
Though investing in condos are pretty good investment option and if the cons as stated above are manageable for you then you can go for it.