Condo vs Townhouse: Which Is A Better Investment?
If you were asked this kind of question, what will be your answer? Which of these two would you consider the best to invest in? Investing in a condo or a townhouse? The question might appear simple literally, but every realtor would agree that it’s a tricky question which needs to be addressed carefully.
There’s a high chance you might have asked yourself this question or you have asked your trusted realtor. Do you get to provide an answer to it? If no, not to worry, we’ve got you covered and if yes, then you should read this and see if your decision is the best or you need a rethink.
There are loads of things to put into consideration, and you need to get your facts right to see which of it best aligns with your plan. Without taking much time, let’s get down to business.
How much do you want to invest with?
The amount you’ll spend as capital on each is different, and you should know how much each of these will cost you before delving into it. According to research, investing in a townhouse is more expensive compared to a condo.
Hence, your capital is a crucial factor that needs to be taking into consideration since you wouldn’t like stopping your project halfway because of lack of fund. Therefore, calculate how much investing in both will cost you and opt for the one that is within your capacity.
Most realtors do not always attach much importance to this, and it’s affecting their investing a lot. Every location has what’s best to invest in, and if you do contrary to this, you might be shooting yourself in the leg.
For example, you don’t invest in a condo in a small town and expect a high ROI. Therefore you should ensure to research the perfect investment that aligns with the location you settled for.
Short term or Long term
Another thing to be put into consideration is whether you want to do this for a short term or long term. A condo is known to have a slow rate of appreciation in its early days, so it could take you up to 5years before you start making a profit on it which is unlike a townhouse that can generate income for you almost immediately after completion.
So, if you need something to tie down your money with, then investing in a condo is your best bet, however, if you’re someone that doesn’t have the patience of waiting for long, you might want to consider investing in a townhouse.
A condo could be harder to pull off when it comes to sales, especially if it’s not in a robust market. This is because it’s like a substitute house, and many wouldn’t want to opt for it specifically in a bad housing market. While a townhouse, on the other hand, tends to be more liquid and attract buyers easily compared to a condo.
Choosing either of the two wouldn’t be a bad decision. It all comes down to your preferences and the situation surrounding your investment. However, if you’re still having difficulty choosing which to invest in, it’ll be best to get an agency to advise and guide on the best that fit into your plan to invest in.
ACORB connects investors with passive real estate investment options in the U.S., including commercial property, apartment buildings, and groups of houses.
If you’re looking for somewhere to start, get in touch with us today to see how we can help your money work for you.