Investing in real estate can be an exciting adventure, but it can also be a daunting endeavor. You can still profit on cheap properties even if you don’t have much money to invest. There are so many different assets to invest in, and it’s hard to know which one is the best fit for your needs.
When investing in housing, will you opt for single-family homes or Condos? The answer indeed varies from investor to investor, but there are some things that you should consider before making any purchase decisions.
Investing in a Condominium
Buying a condo as an investment property has several advantages worth considering. They are typically less expensive than detached homes, for starters, making them ideal for inexperienced investors or those looking to build a significant portfolio of real estate in a specific area.
Condos, which tend to be situated in densely populated urban areas, are frequently more concerned with securing a constant rental yield than achieving long-term capital gains growth. These are some advantages of investing in a condo:
- Affordable to Buy as an Investment
Condos have the advantage that they are less expensive than houses, making them an excellent place to start if you’re a first-time investor or have a limited budget.
- Possibly Less Challenging to Manage
Condo, unlike houses, usually do not have any land, which means less labor for you! Repainting, gutters, and maintaining the yard will become a thing of the past. Because condos are typically smaller, cleaning takes less time.
- Costs of Upkeep Are Shared
Unlike houses, the costs of maintenance, insurance, and upkeep are shared among all condo owners under a strata title.
Investing in a House
For investors seeking long-term investments, houses are the ideal choice. Investors often purchase these buildings for their portfolios to be renovated or to increase in value before being sold. Let’s learn more about the pros of investing in a house.
- Growth of Capital
Because land rises in value over time, houses often offer more long-term capital growth than condos. However, there are notable exceptions based on location, so it’s equally crucial to consider the area when looking for an investment property.
- Renovation flexibility
You have considerably more influence over changes in a house than you do in an apartment because you do not have to get approval from the body corporate. Renovations can also increase the value of a home.
- More reliable rental returns
Houses tend to attract tenants who are more reliable and likely to stay for a longer time, such as families and couples.
If you want to live in a condo, and the low-maintenance lifestyle that comes with condo ownership is worth the extra expense to you, you should consider buying a condo rather than a single-family home. However, suppose you want to use a property as a college fund for your children, a retirement fund, or an additional source of income. In that case, you should look at single-family homes or multi-family homes.
Many options are available when it comes to investing in real estate. You should choose your preferred type of real estate with care, as the decision you make now will affect the potential returns on your investment for years to come.
If you are looking for a suitable investment property in the Philippines that will increase the value of your money and provide security in terms of rental income, real estate is one way to go.
