Condos are a pretty sound investment, and that’s more true now than ever before. For someone who’s new to condos and renting, there still might be a lot of questions to ask. One thing you might want to understand, are the benefits of investing in a condo. Do you think you should invest in a Condo? If you do, I’ll lay out some of the benefits about why you should, and how they’ll help your investment portfolio.
Why A Condo?
In general, rental property is almost always a good idea as an investment. However there are major differences in the kinds of properties you can invest in, and among all of the different types, condos provide a good number of unique and attractive elements as an investment. There aren’t a lot of condos in Port Ablerni, so one place I recommend buying an investment condo in is Kelowna. Investing off the island can help balance your portfolio if the market turns down.
1. Cash Flow
Cash Flow is one of the biggest incentives for investing into a condo. Cash Flow represents the money you have after all of your expenses are paid from the money that you earn. Condos are a great source of positive Cash Flow, which is quite similar to passive income. As the housing market greatly favors renters right now, it’s fair to say that investing in a condo could be a smart way to generate more cash flow.
2. Passive Income and Retirement
Depending upon how you invest and set up your rental property, condos can be a pretty smart way to earn passive income and supplement your retirement, even after you’ve retired. The real cost of retirement is quite a lot higher than most folks would expect. The last thing you should want to do is feel penalized for living longer by going broke sooner, which is why investments into forms of passive income are a smart thing. Investing in a condo and having your property managed by a third-party property manager can provide you with income at no added effort or labor. This can yield you money for reinvesting, or just living off of if you’re ready to quit work.
3. Paying Off Your Loan
Sometimes referred to as Loan Amortization. This booking technique is a way of lowering the cost for things like loans and mortgages. By renting out a condo, you can pay off your original mortgage and have money to spare. Simply rent the property and pay for your mortgage through the money you get from your tenant’s rent.
4. No Hassling with Maintenance
For many rental properties, it’s the responsibility of the landlord to see to it that proper maintenance and repairs are conducted on the property. However, with a condo this certainly not the case, and very little maintenance is required on the part of the property owner. Busy work chores like mowing the lawn, shoveling snow or even fixing the roof are duties you’d normally deal with that aren’t your responsibility with a condo, which keeps you free of added work. It’s highly beneficial if you like to keep your life free and open to things like travel, or have physical issues that would make doing these things yourself more difficult.
5. It’s Cheap and Beginner Friendly
Another benefit to condos as an investment is that they can cost a lot less than other property types, which can be especially beneficial for people looking to get into renting property. Certain apartments and single-family homes can cost more and require more in maintenance, while condos are typically cheaper and smaller. The arrangements they provide are usually better for those with less time or who are new to property investment.
6. Better Appreciation
Nothing points to a smart investment better than appreciation, yet if you’ve followed information about condos for a while, you’d know that they’ve not always been the best for appreciating. This has changed in the past decade, and now condos appreciate at a faster rate than single-family homes according real estate experts. As an investment, this can be a huge factor to consider in the long term.
If this makes sense for your portfolio feel free to reach out to me personally for a referral or you can chat with a long time contact of mine, Mark Walker of Kelownacondos.ca. Mark has been selling condos for years and will take good care of you.