Key Things to Look Out For When Investing In a Condo
Investing in a condo is known to be one of the most promising investments in real estate. Most realtors are always eager in buying a condo because of its great way of generation ROI and neglect the fact that, this kind of investment also has its own rules, that if not follow to the letter, it might reduce your profit and can even lead to a total loss.
There are loads of condos for sale out there, but there are some cogent things you need to look out for when buying a condo. We might not be able to talk about all these points, but I’ll highlight and explain in details, the cogent ones that you need to pay full attention to.
Location
Although condos are known to be situated in a desirable location, however, paying close attention to the location of where the condo you want to buy is located is very germane. Buying a condo located in an urban area will surely yield a lot of profit compared to condos in a rural area.
Therefore, you should ensure that any condo you want to invest on should be situated in an urban and desirable area to enhance good profit and quicker sales.
Market condition
Every location has its market conditions, and they vary based on location. It is advisable to know the market conditions where the condo you want to invest in is situated. Knowing the market conditions will enable you to have an idea of how much your expenditure and revenue should be.
For example, if the market condition of a particular location has a record of low sale, it’ll be best not to invest in such location.
Accessibility of your HOA
The Home Owners Association (HOA) has a lot of impact on condo’s investment because of their role of carrying out any maintenance on your condo, which if left for you to do, may consume a more significant part of your investment.
Having a good and accessible HOA does have a significant impact on your investment. Therefore you should ensure to know how they operate, find out about their regular maintenance, deferred maintenance, ample reserve account (for more substantial repairs) as well as CC&Rs and bye-laws.
Rental rate
It’s no news that you derive your income on condo from its rental rate. This means having an excellent rental rate has a high impact on your investment. Whenever you want to invest in a condo, you should always make it a duty to enquire about the rental rate of where your condo is situated.
Enquiring about the rental rate will give you an idea of how much to base your rate on and also allow you to forecast your income annually.
Employ the service of a second eye
No matter how vast you are in real estate investment, you just can’t get all right, especially if it’s not your profession. Therefore, the need for an agency or company that is into real estate business. Employ their service and let them guide you on the best way to invest in a real estate.
There is quite a view that have an excellent record in this regards; hence, the need to be very careful when choosing the company.
The condo is a great investment if you know your way around it. Get a professional relator to hold you by hand during your investment. Start investing in a condo today, and you’ll on the verge of having a Midas touch.
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