In a world where people are preferring condos over houses, it is necessary to know if buying a condo a good investment. There are a lot of benefits attached to the process but at the same time, there are a few flaws as well.
Let us find the truth here and what all can be done with a condo.
Pros Of Owning A Condo
1. Condos Do Not Require Much Maintenance
This is one of the main reasons condos attract more and more people in the modern world where nobody has time to maintain their homes. The condominium association collects a maintenance fee and in return provides services to take care of your house. The services provided by the association depends from community to community.
The condo maintenance fee generally covers certain elements they are familiar to the whole community. Amenities like a swimming pool, gym, elevator services, general store, vehicle cleaning, or a clubhouse are under the association of the society.
Some condos even offer a broadband connection, intercom connection, television cable connection, etc. It also covers personal elements such as janitorial services, lawn mowing, snow removal garbage removal, grass cutting, etc.
2. Condos Are A Cheaper Option
Condos, when compared to buying independent houses, are much cheaper for obvious reasons. Owning an independent house is to have the luxury of utmost privacy. While condos lack this element, they are much cheaper to buy or live in as tenants. (1)
The main reason independent houses are more expensive to purchase is that the owner of the house also owns the land beneath the property.
Whereas in a condo, the owner of the condo owns only one unit of the community. With condos, residents get a lot of added benefits such as swimming pool, gym, spas, etc.
Building all of these in an independent house will cost a fortune. This is another cost-efficient factor of condos. If one is thinking, is a condo a good investment, the price definitely plays a major factor while making a decision.
Typically, you’ll spend less on a condo, industry experts say, and historically, single-family detached homes have appreciated faster than condominiums.
– Geoff Williams, Contributor at U.S. News
3. Renting Out The Condo
Owning a condo means the property is yours to rent out to tenants. This raises the question once again. Are condos good investments?
Investing in a condo and renting it out as per your wish is a smart and profitable thing to do. If the condo you own has a center of attraction, such as a lakefront, or a mountain view, it will attract people easily for high prices.
Renting out a condo once a week or so itself will give you enough profits. Besides renting, it can also be a fun getaway for you and your family and friends.
4. Condos Are Perfect For Families
There is no seclusion in condos. There always are other families and other kids for your kids to interact with. In a community, there is a lot more social life and a positive atmosphere.
Condos have even proven to be safer than single-family homes. The community is well guarded with security guards and CCTV cameras. The communities even have compound walls.
A single-family house, whereas, has a higher chance of burglary. In a single-family house, you will have to hire security guards and attach CCTV cameras yourself.
How about for real estate? There are many things to account for before answering this question. The reputation of the community in which the condo is and the locality of the condo matter a lot.
Even the amenities provided by the community and the distance from the heart of the city, etc. play a crucial role. These are a few things that people look into before investing in a condo.
If you decide to buy a condo purely for the sake of real estate, these are significant factors to consider. The gross value of the condo is on the rise throughout the years. Getting the right condo is difficult.
However, there are a few negative aspects to the idea of buying a condominium as an investment. Let us consider the points people should keep in mind before buying a condo.
Things To Look For Before Buying A Condo
1. Maintenance issues
If you are looking for a cheaper condo to stay at, other things come into play.
There are higher chances of a cheaper condo giving issues with the maintenance. The maintenance fee is paid by the owners of the condo every month.
If some of the owners fail to pay the maintenance fees, the effect of it is felt equally by all the residents.
Due to this, the necessities that everyone requires might not be provided to all the residents.
2. Lack Of Privacy
Condominiums are not like independent houses. It is a community of a lot of houses put together, sharing the same amenities and common areas.
In most condos, the houses are built with common walls between them.
If the walls are thin enough, you can hear disturbances like loud music, etc., from other houses. You can even hear their newborn baby crying at 3 am. (2)
Well that’s a bummer, right?
3. Bad Neighbors
It is a pro as well as a con. Sometimes there can be noisy or uncompromising neighbors.
To live a peaceful life and do justice to your decision of buying a condo, neighbors need to be understanding and helpful. No one appreciates neighbors who are loud and uncompromising.
Though the cons may seem substantial, the pros outweigh in both, number and quality.
So, is a condo a good investment? Let us see what more they can offer.
What Can You Do With a Condo?
While the sole purpose of a condo is to live in, there are other things one can do with the condo. Condos are vast in number and are fast moving, both regarding purchases and rental.
Most nuclear families opt for condos nowadays because of easy maintenance and social life. Although simply owning a condo does not earn you any money, and in fact, it can become a liability as well.
Are condos good investments? Well if you buy one for renting out, it should fetch you decent money. Either actively and consistently, or as one time earning. Spending so much in a luxurious place will only be fruitful if it fetches you a peaceful living or a substantial amount as an investment.
We know the answer to “is buying a condo a good investment.” However, think before you invest in a place.
There are many brilliant condos under development, especially in Toronto. Condo Developers like the Tridel, Daniels, Concord Adex, Pinnacle International, etc. are building some of the best places in Toronto. Places like E2 Condos, The Camden Lofts, Monde Condos, etc. can completely change your lifestyle.
If one is still not sure whether buying a condo is a good investment or not, check out a few of the best condo developers in Toronto and their major projects.
Is a Condo a Better Investment Than a Single-Family House?
It generally costs more to buy a single-family house. This is because a house requires a lot more investment when compared to condos. Facilities such as playgrounds, pools, gym, etc. will not be pre-built in most houses.
Besides the difference in square ft, one of the crucial contributors to the price of a single-family house being higher is the fact that the owner of the house not only owns the house, but also the land on which it is built.
This is one of the main factors that turns to answer to “is buying a condo a good investment?” in favor of condos.
Another factor to consider here is demand and supply. With the rate at which the population of the world is increasing every year, the demand for condos will rise exponentially in the coming years. The value of condos is bound to increase.
So if you are thinking now, is buying a condo a good investment, in the coming years, this investment will definitely pay you back. You can also watch this video by Brett where he explains why pre-construction condos are a good investment.
Explore The Condo Life
There are multiple factors that go into consideration when it is about buying a property. However, as we have analyzed, buying a condo should be on top of your list if you plan to get your hands on a new property. The features and amenities are much more when compared to an individual house.
If you are still thinking, “is buying a condo a good investment,” explore few of the best pre-construction condos and newly built condos on Precondo.ca. Change the way you have been living. Explore the condo life for an easier and more comfortable way of living.
1. Geoff Williams, 3 Reasons to Buy a Condo – and 3 Reasons to Beware, retrieved from https://money.usnews.com/money/personal-finance/articles/2016-06-26/3-reasons-to-buy-a-condo-and-3-reasons-to-beware
2. Heather Levin, Pros & Cons of Buying a Condo – Is It Worth It?, retrieved from https://www.moneycrashers.com/pros-cons-buying-condo/