Thinking of buying a condo? It could be a great investment and a great place to live. But not all condo investments are the same. So if you’re thinking of parting with some hard-earned savings – you need to be careful. In this article, we’re going to look at a few considerations you need to make before buying a condo, many of these could affect whether it’s a good investment or not, and how much your condo could increase in value over the next few years.
- Check the crime rates in the area
One thing that can impact the value of an investment is the crime rates in the local area – but you’d be surprised how many people don’t look at them. If a crime is going up, this could be a trend that affects property values negatively. Make sure you know what sort of area you are investing in, especially if you plan to live there too.
- Get a survey done
Lots of people want to make a quick sale or a quick purchase. And you probably do too. But don’t go so quick you forget to do basic things like surveys. If your condo is in poor condition or has structural problems, this could be a disaster for your investment. Boutique condos can be a great investment, but you need to do your research carefully.
- Make sure the location is right
Aside from crime rates, there are other factors that determine whether you’re in a good location or not. What are transport links like? Is it near local amenities and services? Are there places to walk? Is it a desirable location? Are schools nearby? Is it a long way from places of work? These are all important questions that will have a big impact on how good your location is overall.
- Talk to your potential neighbors
Not only can good neighbors be nice to have around, but they can also help improve the desirability of the area. Have a chat with them and see what they say. They’ll also be aware of any local property issues that your realtor probably won’t tell you.
- Make sure you can afford it
Obviously, you should only spend what you can afford. Make sure you’ve calculated mortgages properly and can afford an increase in rates. Most good investments will have a rental yield that’s above what you pay each month for your mortgage, so do the calculations and make sure this is the case.
- Make sure you’ve got a good removal firm
To make the move as stress-free as possible, make sure you’ve got the right experts to help.
- Make sure the home is ready to move into
If you’re renting it out, you might get better rates or a quicker tenant by making sure everything is ready to go. If you’re living there yourself, this will affect things too.
- Check how much property values have changed in recent years
Probably the most important thing you can do if you’re looking for property investment is research how much property prices have changed in recent years. Are they continuing to rise? You want an investment with the best potential growth possible.