People need a roof over their heads, it is a necessity of life, so you cannot go wrong by making the right real estate investment. Investing in condo units is a profitable and secure investment choice.
It is the most accessible entry point into the real estate market for new investors, requires lower upfront capital investment, and, when done right, is a low-risk choice.
The condo market in Canada is filled with an assorted range of properties at varying price points. If you are considering diversifying your investment portfolio, below are five profitable reasons to do that by investing in condos.
What Are the Top 5 Profitable Reasons to Invest in Condos?
1. Investment Stability
Regardless of whether you want to live in your condo or rent it out, it is a stable investment choice. To choose the most profitable condo investment, consider the market’s evolution and pick an area that offers high rental rates and a building with attractive amenities.
Amenities are one of the top reasons tenants choose condos over stand-alone houses. Some examples of the most sought-after amenities include state-of-the-art security, swimming pools, and gyms.
2. You Can Leverage Your Investment
Residential condo developments are typically found in cities where more and more people are choosing to live to take advantage of the career and education opportunities offered there.
That is great news for investors looking to start a real estate investment company or turn a profit and generate passive income. Condo investments are a great way to start a business because you can leverage your investment and take advantage of your condo’s increase in value by re-mortgaging it and investing in another one. Refinancing property allows investors to buy more real estate and grow their assets.
3. Stress-Free Property Management
Real estate investors want to maximize their returns and condominium rental management companies play a key role. Choose a company with proven expertise in tenant placement, rent collection, and experience managing multiple properties.
Condo management companies help reduce stress by handling the day-to-day operations, so investors can focus on other areas of their business instead of dealing with the potential headaches of managing a property.
4. Pre-Sale Advantages
Brand new condos are often available at more affordable pre-sale prices, enticing potential investors and encouraging them to buy. If you are looking to buy a condo, pick a building in the city offering pre-sale pricing to find units that fit your real estate investment budget.
If you find a residential condo development still being built, ask about launch discounts and pre-sale pricing to make your investment more profitable in the long run. Condo down payments are significantly less than paying for a multi-bedroomed house.
5. Lower Maintenance
Compared to standalone houses, condo investors benefit from a much lower maintenance burden. Condo owners do not need to worry about exterior painting, lawn care, and some repair tasks.
Traditional homeownership investments could come with a hefty price tag once your tenant starts finding problems you knew nothing about! Hassle-free condo ownership is far less complicated and leaves you time and money to pursue other investments.
Final Notes
While some investments depreciate over time or after a risky move, condo investments tend to do the opposite. Real estate investments can be challenging, but if you choose the perfect property, you can be smiling all the way to the bank in no time!