Real estate investment can be one of the most lucrative and sustaining long-term financial strategies around. However, purchasing single-family homes can be both expensive and headache-producing, especially for those just breaking into the field. That’s why many explore how to invest in condominiums instead, as condos are usually less expensive than a single-family home and include a number of unique characteristics that make them a prime pick for investors.
If you’re looking at how to invest in condominiums, including the many desirable properties here in Philadelphia, here are a few things to keep in mind.
Tips to Invest in Condominiums
Maintenance: When considering the return on investment of a condo, factor in maintenance. When you buy and then rent out a condominium, you are responsible for monthly maintenance fees. While that price may seem like a negative at first, it exempts the owner from having to pour considerable money into fixes over time. As any landlord knows, maintenance issues can arise suddenly and be extremely costly; with a single-family home, owners have to shoulder that financial responsibility but, with a condo, you can avoid the risk.
Amenities: For those looking to learn how to invest in condominiums, one of the big plusses is the touch of luxury that condo buildings often offer. Unlike traditional single-family homes and apartment buildings, condominiums usually feature chic décor and community spaces like a pool or fitness center, which make them highly attractive with tenants—and help owners avoid vacancies and the ensuing cash flow challenge.
Ownership: Because many condo buildings require a certain number of owners to live on site, as opposed to renting their properties, the building is typically much better cared for than those that are entirely comprised of rentals. When owners live at the building, they take more pride in keeping up their own space and contributing to the community, making condos vibrant, clean, and attractive places.
Rules: One of the big downsides of renting out a single-family home or traditional apartment is the risk owners run in turning their property over to tenants. With a condominium, however, residents must follow a more stringent set of rules, which creates a safe and respectful atmosphere and allows owners to maintain the integrity of their property. Because of this, condo owners can preserve their investment, leading to longer-term financial success.
If you’re interested in investing in condominiums in Philadelphia, let us help you find the perfect fit.