“Only buy something that you would be perfectly happy to hold if the market shut down for ten years.” -Warren Buffet
Investments in real estate are one of the tried and tested avenues to have a better leverage on your income. In a sense, it also allows you financial freedom insomuch that you might never have to worry about your daily expenses ever again. However, this would invariably depend on how wise you are in handling your investments and how strategically you have executed them.
In this time and age, financial freedom can come in the form of condo unit investments. With the market’s continuous demand for them, a condo unit investment is certainly an appealing financial venture and prospect. Furthermore, condo prices are at an all-time low and with flexible payment schemes, it would be that one definitive investment you should never miss out on.
As there are a myriad of ways you can earn income from this (and with so little effort on your part), condo investments would be the ideal breaking ground in your venture towards real estate investment. If you are planning to invest in a unit soon, whether that may be an empire east condo or elsewhere, here are some of the condo investment methods you might want to consider in your endeavor:
1. Earn through short-term rentals
With the innovation of home-sharing apps, many homeowners have now effectively turned the unused room they have in their homes into a cash cow. This is especially true for homes are located in premier destinations where tourists converge and arrive by the droves. After all, who would not wish for a cheaper alternative for accommodations when hotel prices are incredibly expensive?
In this regard, you can begin your investment venture by offering your unused condo unit for short-term rentals. Advertise your condos in reputable websites that host that kind of service or market it through social media. Whatever it might be, just get the word out.
2. Maximize earnings through long-term leases
If you have a day job and would not be able to devote much of your time in managing your condo unit, then it would make more sense if you put up your unit for a long-term lease. In this regard, you should consider at least a one-year lease contract. If you are fortunate enough, you might even collect rent that is equal or more than your monthly housing loan amortization.
To ensure you can find interested and prospective tenants, exhaust every advertising option available to you. From making it known through social media pages or posting on the classified ads or hiring the services of a professional agent. Your options are practically limitless, just remember to explore all of them thoroughly.
3. Buy a unit at pre-selling stage
If you have a little cash to spare and are not in need of immediate returns, one of the great ways to invest in a condominium is to buy it at its pre-selling price. This is because condo units sell the cheapest just before its anticipated turnover. Once the construction is done and is ready for occupancy, you might want to sell it to an interested buyer who would be eager to move in—at a price that is much higher than the one you initially placed of course. However, tread carefully and be sure to deal with a reputable developer who has excellent credentials.
Turnover delays or worse, unfinished projects are things you want to avoid, so be sure to meticulously do a background check on the property developers you wish to transact with. Do not be quick to part with your hard-earned money before finding out just how reliable the company you are choosing to deal with is.
4. Improve your condo
It is inevitable for your property to depreciate over time. However, this should not deter you from your financial goal. After all, you can always incorporate and introduce improvements to make it marketable to prospective tenants.
Be sure to maintain your condo and to constantly improve it and if your budget permits, adding basic furniture will significantly improve your chances in attracting tenants. Furthermore, if you executed all of this in a tasteful and sophisticated manner, you can leverage your asking price better.