Real estate is definitely seen as one of the safest vehicles for investments.
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And among the different types of real property, residential properties are the most preferred asset class for real estate investments as it opens a lot of benefits for the investor to enjoy.
If you are also considering investing, a condo can be a good entry point for you. Here are 5 reasons why you should do so:
Reason # 1: There are lots of condominium options available for you
More and more condos are being built everywhere. If you check for listings within your location, say, searching for a condo in Pasig City, then you will come across both existing and upcoming condos.
With multiple options, you would be able to assess which one has the most potential as an investment vehicle for you.
Reason # 2: A condo can help you enjoy monthly income
If you turn your condo into a rental, this allows you to enjoy monthly rental income. Such rental income can also be used to pay for the mortgage if you decide to finance your condo through a loan. With this, you may even be able to sustain more than one mortgage.
If you were able to pay it outright though, you will be able to enjoy the monthly rental income immediately.
Reason # 3: There are many ways for you to use your condo as an investment
Aside from long-term rental, there are other ways for you to turn your condo into an investment. Depending on your condo’s policy, you may be able to turn it into a bed and breakfast, giving you an opportunity to earn even more on a monthly basis.
Meanwhile, you may even consider reselling your condo at a higher price. Real estate appreciates over time, allowing you to sell more your condo for a price that’s higher than what you purchased it for. Furthermore, if you have furnished your unit, you can even add a significant premium for that.
Reason # 4: Condos are high in demand
If you are thinking about whether offering it for rent or for sale is really feasible, then you should know that condos are highly demanded by both renters and buyers. Especially true if you got a good condo in a nice neighborhood, demand would be very high.
So when choosing condos, it’s best to consider the location of which property you’d like to turn into as an investment. Also, considering the developer as projects from reputable builders would definitely command higher demand as compared to lesser-known developers.
You will have more success in checking out condos in an integrated estate such as a township project, or one that is within walking distance from key business districts.
Reason # 5: You have the opportunity to lower your investment cost by getting a unit early
Pre-selling condos are cheaper as compared to getting them when they’re completed. This would mean that your investment cost can be lower when you sign up for a pre-selling unit as compared to doing so towards or upon building completion.
With a lower investment cost, you would be able to enjoy higher returns.
Of course, there are some risks associated with getting a unit before it’s actually finished, but getting a unit from a reputable developer helps address this issue as you know that the builder has a track record of delivering their promises to their buyers. The key is to find a developer that you can trust so you can leverage on getting a pre-selling unit that will allow you to make the most of your investment.
Investing in a condo really has the potential in helping you reach your financial goals. But in order to do so, you must take time and do your research as to where to buy a condo, which developer’s project you will buy from, and what pricing strategy you can implement.
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