Real estate is one of the most preferred investment products as they have proven that they can bring in both short term cash inflow through rental income, or long term returns by reselling the property once it appreciates.
While a lot of would dream of a decent house with a great backyard, the limited land in urban centers usually mean that there are limited options for landed properties, and those that are available usually come with a hefty price tag.
A great alternative is investing in a condominium unit. And if you need some convincing on why this is a good option for you, here are 5 reasons why you should definitely consider investing in a condo:
Condos are strategically-located
The first reason why a condo is a great investment option is that condo projects are usually located in strategic areas such as city centers. Property developers are able to turn a small plot of land in an otherwise high-cost, high-competition location, and offering investors a chance to live near their place of work, as well as key services such as retail and banking.
There are also cases where condos are located in tourism centers such as a condo in Baguio City, the summer capital of the Philippines. Condo owners are able to leverage on the high foot traffic from visitors and tourists, which can lead to demand for rental, and a factor in the long-term appreciation of property values.
Condos come with amenities
Another reason why condo investments are great is because of the amenities that property developers include in their condo projects.
Condominiums usually come with a number of amenities which include a decent reception area to receive guests and visitors, a function hall for events, sports and wellness facilities such as a swimming pool and a gym, playground for the kids, and gardens for a touch of nature.
These amenities can also be present in landed property, but will take significant space, and would cost a lot more to set up and maintain. In a condo, you will be able to enjoy these as a perk.
Condos are highly-secured
The level of security in condos also makes it a good investment. Condos have their dedicated security team that not only screen those who enter the building, but also monitor hallways, elevators, and other common areas to ensure that only occupants and their registered guests are able to enter the premises.
Mirroring the same level of security in a landed property would call for high costs, but in a condo, this is inclusion in your service charges.
Less maintenance costs
When you invest in a condo, your responsibility largely revolves around the upkeep of the inside of your unit. The building’s exterior as well as all common areas inside the condo are the responsibility of the property management. This limits the costs that you would otherwise have shouldered if you are maintaining a landed property where your responsibility would be significantly larger as you would need to think about roofing and structural integrity, pest control, garbage disposal, and many other aspects of house maintenance.
Rental income from condos is great
All the aforementioned benefits of condominiums translate not only to the owner, but also to a lessee should you decide to offer the property for rent. With a great location coupled with great amenities and reliable security, condos are typically in demand, which helps condo rentals command reasonable rental values. So whether you decide to be an owner-occupant or a lessor, the benefits of a condo is evident.
Investing in a condo is a great first step in entering real estate investment. Investing in a condo opens you up to the benefits of owning a property in a prime address, which enables you access to all you need, without the need to worry so much about upkeep and security.