Have you been considering investing in a condo but are not sure if it would be a good return on your investment? Condominiums have been experiencing a surge in popularity not only for their affordability but also for the low maintenance requirements since condo owners are typically only responsible for the interior of their homes. This can make condos an extremely attractive option for real estate investors.
Let’s talk about the advantages and disadvantages of buying a condo and whether or not buying a condominium is a good investment in 2023.
What is a Condominium?
A condominium, often shortened to condo, is a property complex that is made up of privately owned units. The homeowner’s association, sometimes called a condominium association, is responsible for the maintenance and upkeep of the common areas in exchange for regular fees paid to the association. These organizations also vote on rules and regulations in the condominium and also mediate any disputes between neighbors.
Why Do People Buy a Condo?
There are a lot of reasons why people buy condos. Here are some of the more common reasons why people invest in condominiums.
They Are More Affordable than Houses
Condos are usually more affordable than homes meant for single families. This means that condo owners will have lower mortgage payments, making home ownership much more attainable.
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The costs of living in a condo are often lower than the costs associated with single-family homes. Usually, a homeowner is responsible for paying for any repairs that occur inside or outside the home, including any backyard areas, but condo owners only have to worry about any repairs that are needed inside the home.
They Come With Added Amenities
Most condominiums come with added amenities that can be very attractive to buyers. These extra benefits can include facilities like a gym, a pool, a shared workspace, and much more. Some condos even offer personalized services such as concierge service, bag service, valet, and security services.
These services would cost a fortune if they were purchased by an individual homeowner but the condominium association can negotiate better prices on behalf of the owners’ thanks to the pooled resources that the association can access.
Some condo communities offer clubhouses, outdoor spaces, and barbeque spaces as shared amenities. These amenities can add a sense of belonging and community to the resident of the condos since these are great places for neighbors to gather and get to know each other. Many condo associations put together events to bring the residents together such as mixers, movie nights, holiday events, and even raffle events for prizes!
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If you hate mowing the lawn, shoveling snow out of your driveway, cleaning your gutters, or repairing a roof, buying a condo might be a great investment for you. Since you don’t have to worry so much about outside repairs or maintenance like yard work, you can spend more time relaxing and enjoying your condo.
Looking for the right plumber or contractor for repairs is the responsibility of the condo association, so it takes that heavy weight off your shoulders. The condo association is also responsible for paying for these repair and maintenance services as well, saving you a lot of money and heartbreak when it comes to unexpected repair expenses!
Location, Location, Location!
One of the most attractive benefits of investing in a condo is the location. Condominiums are typically built in either desirable urban areas such as downtown areas of large cities and close to colleges and universities or they are built conveniently close to many tourist attractions and recreational areas.
Many love living in condos in urban areas due to the convenience of having groceries, dining, and entertainment located within the distance of a short walk from their home. With gas prices rising being able to get all the necessities without having to drive can save you a significant amount of money.
Saves Money on Insurance
Since condo owners are only responsible for the interior of their homes, they can save quite a bit of money on paying for insurance since many of the more expensive repairs such as roof or exterior wall damage. The only things that condo owners have to insure are their own possessions and the interior of the condo. Most condos offer insurance through their condo’s master insurance policy which uses the combined purchasing power of the residents to negotiate lower costs for insurance that many owners may opt in to.
What Makes a Condo a Good Investment
There are a couple of factors to take into consideration when choosing a condo as a real estate investment. The current state of the housing market where you’re buying the condo has a huge impact on your investment.
You also must consider if the condo is in a desirable location to use as a rental. Condos that are close in proximity to recreational areas such as a beach will be in incredibly high demand during the spring and summer but depending on the location, the winter months may bring in little to no income. These would best be utilized as short-term rentals.
Condo properties that are located in urban downtown areas or close to universities may be better utilized as long-term rentals since most people that live in these areas will most likely be looking to settle in for a bit.
Looking to buy or invest in a condo? Contact Mares Mortgage to get started the right way today!
Whether you’re looking for a home or an investment property, condos are a great choice for either. Due to the affordability, location desirability, and easy maintenance, condos are a great choice for first-time home buyers or for those looking to invest.