People purchase condominiums for a whole variety of reasons, however often they do not stop to consider that there are both pros and cons to entering into the condominium market either as someone who is seeking an appreciating asset that they can earn a rental income from , or as a place to call home.
So what exactly are the pros and cons to purchasing a condo for both of these types of prospective buyers.
As a prospective rental income generator condos have long been popular. They are easy to maintain, there is a steadily growing market of potential people who are coming to prefer rentals over ownership. In fact there are certain areas where condos have shown a steady appreciation in value (such as the E2 condos in toronto, beating out many other asset classes. However as the old saying about property goes it’s all about ‘position, position, position.’ Condos in popular vacation spots are great – but they suffer in the off season. It’s better to have a look at a part of a city that is undergoing gentrification where you can buy a condo of plan at a relatively low cost and watch that asset grow in value.
It’s also all about your prospective tenants. Make sure that you do the appropriate background checks to ensure that you are getting a quality tenant. If there is a single point that makes owning a condo for rental into a short route to a nervous breakdown it’s having a tenant that is a continual worry.
For those who want to purchase a condo as a living space for themselves and their family it can be an extremely rewarding experience. this is especially true for younger buyers who are attracted to the ‘lock up and go’ lifestyle. The freedom to simply lock your door and set off on a well earned vacation knowing that security is in place should not be underestimated. However, there are some considerations. Fees for instance. When you buy a condo – even if you are buying it for cash you need to take into account that there are still monthly condo fees that have to be paid – budgeting is still required. Find out more about Condos by clicking here.
There is also the matter of the condo rules. Some people have said that these rules make condo living something like moving back in with your parents. Make sure you are comfortable with those rules before you decide on your condo purchase.
All that said – owning a condo can be a tremendously rewarding experience, both from a lifestyle and investment point of view. just make sure you choose your condo wisely. Find out more on Zillow.com