Condo investing is rapidly becoming the top venture for those who are looking to earn money. Most investors opt to put their money on condos and other forms of real estate, as there are several ways to make money in this venture. One of the most common and easiest ways to make money is by renting the condo unit out.
If you are among these individuals who are looking to earn money from condo investing, you will have to consider the following factors:
- Do not buy condo units based on price.
The very first thing you need to understand in this type of venture is that condo units are purchased not because they are cheap or small. You should purchase condo units with a purpose. If your purpose is to rent it out, you must first establish your target market. If you know who your target markets are, it will be easier for you to find the right condo to purchase and it will also be easier for you to rent the unit out.
So, instead of buying the first condo you find that fits your budget and finding ways on how to market, it will be easier for you to plan your marketing strategies first prior to purchasing a condo unit. Keep in mind that the easier and faster you market your condo for rent, the easier and faster it will be for you to earn money.
- Do not ignore the importance of a condo’s location.
After establishing who your target market is, the next thing for you to consider prior to choosing a condo unit is the location. Once you have identified who your market is, find out what types of condos they are looking for and where they want to rent. As soon as you have laid out these details, you will know where to look and what types of condos to buy. You now have a more focused process for your search of condos for sale.
- Consider the condo building condition.
In a condo investing venture, you can either purchase a new condo building or condo resale. If you go for a new condo building, find out whether other buyers and owners have bought units in the same building for their personal use or for the purpose of renting it out. If most of them seek to rent their units out, you might want to think twice in purchasing a unit because you will surely have a stiff competition in finding potential renters. Should this be the case, it may be best to purchase resales instead.
- Do not expect to pay your mortgage and condo fees AND make a profit with your investment.
If you are venturing in this type of investment, keep in mind that rents often decline. The rent you receive does not always make up for all the monthly fees you are paying for the condo unit and give you profit at the same time. In this type of investment, the purchase price of the condo is not the only cost that you will invest in. You will also have to pay for maintenance and other fees associated with the condo unit for about a couple of years until your condo unit can be considered self-sustaining.
For more information on condo investing, contact Jerry Pinkas Real Estate Experts now.
Jerry Pinkas Real Estate Experts
604 N. 27th Ave
Myrtle Beach, SC 29577