If you are interested in investing in real estate in 2023, the question that must have crossed your mind is “Is buying a condo a good investment?”. The answer to this question is not simple, and there are a few things you should consider. First of all, what are your intentions with it? Are you going to live in it, rent it, or sell it for a bigger price? Anyhow, these are only the basic questions, and there are more yet to answer.
Now, when you have your intentions figured out, the next big question is “Can you afford it?”. Of course, you wouldn’t even consider buying a condo if you don’t have enough money to buy it. But buying is just the starting point. You won’t be able to pay the beginning expenses unless you can find a tenant right away. In reality, it’s not easy to do so and it often takes a few months before finding it. And by then, you will be paying expenses from your pocket. Now, this is an important factor but should not be the only one considered.
If you are looking into renting the condo you are investing in, it’s important to estimate the expenses and determine the expected revenue. The expenses of maintenance should be lower than expected revenue to profit from renting. There are many things that influence the revenue rate. Such as location, safety, schools, inventory, future development, property taxes, etc. The good thing about condos is that they are often low maintenance.
The location of a condo is important for various reasons. First of all, if you are looking for a place to live in, the location can determine the expenses of maintenance. The bills and taxes are going to be much higher in luxury areas, and they must be considered before buying a property. On the other hand, if you are investing in condos for renting, the location is just as important. For example, accessibility to public transportation, shopping areas in the vicinity, playgrounds for children, parks, and many other things are affecting your ability to rent your condo. Even if you’re picking a suburban location like Vaughan in the Greater Toronto area, it’s important to know what’s in the surrounding neighborhood and the benefits you’ll get in living in that area, as explained here.
Inventory has a big impact on your monthly rent. For example, unequipped condos rent is significantly lower than equipped ones. If you want to raise condo’s value, it’s important to equip it with essential furniture and accessories. Make sure you follow the trends and invest in new things that people find important to have. It will increase the rental value of the condo, and make it easier for you to find tenants. For example, a few years ago it was not important to have wireless Internet, today it’s vital for modern people.
The Bottom Line
To summarize, there are a lot of pros and cons of investing in condos. It’s on you to decide after considering all these things. If you invest wisely, it can and will pay off. It’s very important not to rush, take your time and think about all the details. In order to get more info about condo investing, check this site precondo.ca. In case you decide to invest, we wish you the best of luck.