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Getting a foot on the real estate ladder is an exciting yet overwhelming time in your life. You have a lot of options available when it comes to what kind of property you invest in — whether it’s a house, apartment building, or condo.
All of them have some advantages, but the condo is the clear frontrunner for first-timers. Here’s why:
1. It’s the Less Expensive Option
Real estate of any kind requires a sizeable investment. A lot is riding on your choice of property investment, so it’s understandable you don’t want to commit too much into something that may not work.
One of the biggest advantages of investing in a condo is its cost. In most markets, a single condo is less expensive than a whole house or apartment building.
There’s also something to be said about their efficiency. Since condos tend to be newer builds, they’re designed according to the latest energy-efficient standards, making them less expensive to maintain. As a result, you’ll typically spend less on utilities and other bills.
You may also save money on its upkeep. You won’t have to worry about sprawling yards, degrading driveways, or leaky basements, and your condo fee will likely cover any repairs you do face.
2. It Can Generate Income
A condo makes a great home for a single person or a small family. But as your little family grows, it can go from cozy to claustrophobic really quickly.
The great thing about owning a condo is that it’s easy to rent out and earn a rental income. Once you’re ready to leave, you can rent it to someone else to cover the costs of the mortgage of your new home.
Alternatively, you can buy a condo as an investment strategy for your retirement. By renting out your unit, you can offset its initial down payment and steadily pay off the remaining mortgage until you’re ready to move in.
While being a landlord is a great way to diversify your income, it’s not for everyone. You may be hesitant to become a landlord if you don’t have any experience managing a site, but that doesn’t mean you should give up on your dreams of earning rental income.
If you prefer a more hands-off approach to your property investment, there are property management companies that can maintain your condo and facilitate any repairs on your behalf. An experienced property management company takes on all the busy work of being a landlord and leaves you with one job: collecting your rent cheque.
3. Condos Offer Amazing Amenities
A condo’s location is one of its biggest draws. Unlike the typical suburban house, which requires a car to get to the nearest grocery store, a condo is usually found in a major urban centre where almost everything is within walking distance. This central location makes it easy to go about your life — whether you’re looking for shopping centres, bars, restaurants, or more. And if something isn’t within a short walk, most major cities have convenient public transportation systems for things farther away.
And don’t forget about what you’ll have right at your doorstep. The condo itself will also have a variety of convenient amenities, including fitness centres, swimming pools, and community spaces.
Bottom Line
If you’re ready to put your foot on the property ladder, consider a condo as your first-time purchase. They’re a cost-effective option that can generate income, not to mention a great place to live!
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This content is sponsored by Mike John.
Photo: Shutterstock
