Investments in real estate may be made in a variety of ways. Each investor has their own risk tolerance and market indications that they use to decide when to cash out. As great as it seems, one real estate investment strategy, namely condominium investment, seems to be undervalued more than others.
Condominiums provide a tremendous opportunity to profit in the current real estate market, despite the fact that they are not as popular as single-family or multifamily residences.
Over the last few decades, condos have been a hot commodity among astute investors. Lucky early investors may now have units worth double of what they paid when they bought them. But the big question is: Is it still a good idea to purchase a condo this year for investment purposes?
To answer this, we will look at the reasons that make condo ownership still desirable for real estate investors this 2023.
Perks of a Condo Unit Investment Property
Under the appropriate conditions, condos may be an excellent investment. It’s important to remember, however, that the ideal conditions will change depending on the specific investor and the particular market. Here are the main reasons to invest in condo this 2023.
1. Amenities and lifestyle perks
The most sought-after features in condos are often the most luxurious and high-end ones.
There are a variety of facilities available in all condo buildings. Amenities might include anything from a swimming pool to guards on duty at all hours. The common monthly expenses will be more reasonable if the facilities are of higher quality.
This is the main distinction between owning a condo and a traditional residence. The whole complement of luxuries is yours to enjoy now.
Condominium communities often have high-end amenities like swimming pools, fitness centers, clubhouses, event spaces, and even a retail center to ensure their residents live a comfortable and healthy life. Even if you’ll be living in the middle of the city, there is still a chance that you’ll discover a condo complex that has green areas, like a garden park or a jogging route, to help you feel more at peace.
2. Lesser upkeep for you to worry about
Having someone else take care of the outside upkeep of your condo is also one of the reasons to invest in condo this 2023. You and your renter share no responsibility for such maintenance tasks like grass care.
The façade of the building is not your concern as a condo owner; your responsibilities are limited to the unit within. To save yourself from the stress of planning for costly projects like roof replacement. Your only responsibility is the upkeep of your unit’s equipment and infrastructure. All of the time and money spent on the upkeep of the building and grounds is absorbed by the condo association.
3. More affordable than single-family homes
In terms of return on investment, condos are often preferable to single-family homes or townhouses of comparable size and amenities. To that end, it would be preferable to incur less initial financial strain.
Some exceptions may apply depending on the state of the market, but generally speaking, the prices are cheaper. Buying a condo at an affordable price, like the ones offered by Asterra, facilitates an easier process of selling at a later date.
4. Pride of ownership
The vast majority of condominiums are occupied by their original purchasers. Many condo associations limit the number of owners who are allowed to rent out their units in the rules. For most people, this means taking more interest in their neighborhood and taking better care of their own property.
When compared to tenants, property owners are more likely to maintain their property and the common areas of their neighborhood. That makes it another couple of reasons to invest in condo this 2023 with regards to better condo investment finances.
5. Enhanced condo living security
A high level of safety is standard in most condo units. If you want to go inside your building and then into your unit, you’ll probably need a key. Every door in the building has an intercom system so that occupants may “buzz in” their invited guests. Many renters would be willing to pay a premium for this extra layer of protection since it makes them feel more secure and deters unwanted visitors like solicitors.
How Condo Owners Earn through Condo Investing
Working with a local real estate agent may help you find condominiums that fit your needs and budget if you’re ready to make an investment and become a landlord. While that is happening, consider the following condo investing strategies.
As a rental property
Instead of selling, many condo owners are opting to rent out their units. Renting out condominiums may be a successful business venture.
Invest in most condo buildings on the city’s outskirts and use them as rental properties. The monthly fees from your rental income is an attractive investment for a passive income. If you acquire the correct condo community unit and run it well, you can make this business model work. As most condominiums are leased on a long-term basis, you won’t always have to be on the lookout for new renters and can help also help you to support your other monthly condo fees.
Turning it into a vacation home
Other reasons to invest in condo this 2023 is that it makes a good investment for vacation homes or getaways. You’ll have a great place to go when you need a break from work or just want to unwind at the end of the day.
Condos are popular second residences for many investors for a few reasons. Getting a tenant for your condo unit may be simpler while you’re not using it if it’s in a desirable location, plus you can use that additional income to your condo association fees.
Resale condo as good investment properties
Because condos are sold before construction is finished, prices may be kept low. “Preselling” refers to the practice through which developers provide preferential pricing, payment plans, discounts, and promotions without the usual inconvenience. Due to these perks, condos are a good financial bet.
Your money will increase without any effort on your part. Therefore, if you aren’t going to keep the condo for the foreseeable future, you stand to gain a great deal of financial flexibility via ownership since condos are in great demand because of their convenient location and unique amenities, making the sale process a breeze.
Saying this, if you are planning to enter the lucrative investment of real estate property in the Philippines, one of the newest developments in the condo market is Asterra. It is the newest condominium project from Vista Land, the most sought-after developer in the country.
Invest now in an affordable condominium property on the outskirts of the city with Asterra and achieve the work-life balance that you deserve!