Things to consider When Buying a Condominium For Investment
Things to consider When Buying a Condominium For Investment
Many are buying condominium for investment. Countries like Singapore are building more and more condominium. In Singapore, super-condo is gaining popularity now with the size of one unit as big as 6000 square feet! Returns on investment for a condominium are much better when compared to landed property such as terrace or semi-detached property.
When choosing a condominium to buy, deciding on the location is important. A good location will give you tenants all year round with a stable income. In a nutshell, condominium at area with large companies (employer), public transport access and in a safe neighborhood is usually safe bets. A condominium that is located in vacation area are able to provide you with both rental income and a vacation getaway when you need one.
Investing in a condominium will earn you both monthly cash flow as well as capital appreciation. This is when having a condo at the right location will be able to fetch a good price for your condo that will be able to cover your monthly installments and still give you some pocket money. A condominium project by a reputable developer at a good location will appreciate to at least 100% of its selling price.
To ensure a positive cash flow is critical to your investment, hence, it is imperative that you have good tenants renting your property. To increase your possibility of getting good tenant, hire a Real Estate Negotiator (REN) to screen your potential tenants. REN also have their networks of trusted source of tenants; such as expatriates. Trust me, the extra fees you pay to a REN is well worth it when compared to the heartache and sleepless night you have trying to evict a non-paying tenant.
The facility a condo offers also makes it attractive to your long term tenant. If a condo comes with a swimming pool, badminton court, tennis court and a nice park will be plus points to you. Usually, condos are designed to have at least 3 rooms and 2 bathrooms. Anything more is a bonus. Of course, do fit up your condos; air-conditioners are a must nowadays with a simple built in kitchen for cooking. Not forgetting to furnish the master bedroom with a bedroom set. Furnishing your condominium will increase the demand and attractiveness of your unit.
Investing in condominiums will also enable you to receive tax benefits. You may offset the interest on your loan when declaring your annual income tax returns.