Are you looking at entering the property investment scene? Investing in a condo that you can then lease out can be a good way to do so. Condos redefine modern-day living, so turning one into an investment can be a wise choice for you. Of course, there are many factors to consider before purchasing a condo unit for you to rent out.
If you need a little more convincing whether a condo investment can be a success, here are some reasons why condos make good rentals:
Condos are appealing to renters
On the vantage point of lessees, condos are great rental options. Condos can be more centrally-located as property developers favor building condos in urban centers as compared to a landed house since this allows them to maximize limited land.
With this, condos can be built together with office buildings, shopping malls, hotels, and other key establishments. This is favorable for lessees as they are able to live where they work, and has access to all these support facilities. A condo for rent in Mandaluyong City in the Philippines brings residents closer to the growing number of companies in the office buildings in the area, as well as the huge shopping malls and wide array of dining options in and around the city.
The amenities in condos also entice lessees as such amenities are difficult to find in apartments or house rentals.
Condos are seen by lessees as a great rental option, so investors are able to feel at ease knowing that there’s high demand for condo rentals. Yet of course, such a fact brings about competition so you will need to stand out among other condo rentals so that you can make the most out of your property investment.
Condos are typically less expensive
As compared to buying or building a house, getting a condo for your investment project is a less expensive track. A condo is a more affordable investment option, and you won’t need to shell out as much money upfront as compared to landed properties, especially if you’re the one who has to build the structure.
Condos are smaller
In the point of view of the landlord, a smaller space is good. This means smaller space for you to furnish, and a smaller space for you to maintain as well. There’s no lawn to mow, and no fence to build.
When dealing with a condo unit, you only have to think about the interior of your unit. The building structure and the common areas are the responsibility of the property manager. And this doesn’t just go for sanitation and maintenance, but repairs as well. All you need to think about is the association dues, which you can factor in the rent so the lessee shoulders it.
Condos appreciate
While not at the same rate as landed properties, the value of your condo unit does appreciate. This will allow you to charge higher for the rent after some time, or you can even sell your unit later on at a higher price than what you purchased it for. The condition of the unit, including what level of furnishing comes with it, can help you tweak the price even better.
Condo taxes and insurances are cheaper
Granted that all the unit owners share the plot of land for which the condo is built on, property taxes for your unit are less as compared to landed properties. At the same time, a smaller space calls for cheaper insurance, and all you need to insure is your unit as the building’s insurance is handled by the property management.
Condos rentals are definitely a good idea not only at the point of view of lessees, but also of the investors. There are many advantages that support the success of condos as a property investment, so start checking out which condo will be your next investment project
