Investing in real estate is a common way to earn more money and still benefit from owning a property. It can be a worthy option for people who are looking to replace their income or want to make some extra money on the side.
Real estate is an investment that can be both profitable and risky. You can invest in a property or the stocks of companies that deal with real estate. Moreover, you will have to decide which is better for you, as each has its pros and cons.
Condos are popular in the cities but are also available in some areas, such as those surrounding residential houses. Condominiums in the middle of the city will have higher prices, but they will also have higher returns. On the other hand, condos not in the center of the town will have lower prices and lower returns.
Benefits of Investing in Condos
Investing in condos is one of the ways to make money with minimal effort. You don’t have to worry much about maintenance, property taxes, or utilities. Condos are also a good investment because they allow you to rent out your unit when you’re not living there.
Condos have been around for decades and are one of the world’s most popular real estate investments. They offer long-term benefits that other real estate types do not have, including low maintenance and risk.
Are condos a good investment? Here are some of the benefits of investing in condos include:
1. The condo appreciates as much as 17% per annum in the Philippines
In the past, condos were seen as an investment that didn’t deliver returns. However, with the increasing demand, developers are building more condos to meet the market demand, increasing the value of these properties. Thus, making it a good investment.
- The average cost for a 3-bedroom condo unit in Rockwell Center increased by 10.6% during 2018
- In Makati central business district (CBD), the average price of a luxury 3-bedroom condominium unit soared 15.55% during 2018
- Fort Bonifacio’s average cost for a 3-bedroom condo unit climbed by 17% over the same period.
2. Condos are popular
In the Philippines, condos are becoming increasingly popular as a residence among people from all walks of life. With a wide variety of condominiums and living spaces, these homes offer a luxurious lifestyle at an affordable price in the country’s most densely populated areas.
3. Rent out your condo unit
Generate a passive income out of your condo property investments. Post your condo on property rental listing websites. People looking for a property to stay in while they’re away or on vacation near your property may find and rent your unit.
4. More affordable than residential houses within cities
As more people move into cities, fewer houses will be available, and people will have to choose between buying a house or a condo. This means purchasing a condo may be cheaper than buying a house within the city.
The price of the land, labor and materials costs for the construction or renovation of houses continued to increase in the past few years. Therefore making it more expensive to invest in purchasing a residential property than in a condo within the city.
5. It is safer to stay in condos
Condos are safer than renting because professionals manage the building. Additionally, the residential building has safety features like panic buttons, fire extinguishers, fire exits, and security cameras that help you feel safe and secure.
Some condos are in prime locations with increased security features. The building is also well-maintained and comes with an excellent amenity package. With this, you can hang around the neighborhood and enjoy the amenities freely without feeling worried.
6. Access to condominium amenities
Condos come with amenities that suit a wide variety of lifestyles, so you can live comfortably. They provide residents with amenities like pools, gyms, and basketball courts. Moreover, access to these amenities also impacts the property value of the building as it attracts more people who want to live there and invest in it.
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7. Lower maintenance cost
People who don’t have enough space or can’t afford a house may opt to purchase a condominium. This is a good investment because they have lower maintenance costs than other properties.
Condos are easier to manage due to their small space. With this, you don’t have to spend that much on the maintenance cost of the unit itself. Unlike owning a house and lot, it will take more cost to repair and maintain the quality and condition of the property.
8. Easy to sell and use as collateral for the business
When investing in a condo, you must have a plan and understand the risks you are taking. Always remember your needs and what you can afford. It is also essential to consider the location of the condo, its amenities, and how much maintenance it will require.
Purchasing a condo is not always an easy decision. However, it can be one of the best investments you ever make.
Condo ownership offers the investor many benefits, including tax advantages and appreciation potential. However, with so many variables that come into play when buying a condo, it is advisable to do your research before deciding to purchase one.