First and foremost, what is a condo? Usually shortened to condo, a condominium is a type of living space that is independently sellable and regarded as real estate. The building structure is divided into several units that are separately owned, and surrounded by common areas that are jointly owned. Unlike apartments, which are leased by tenants, condominium units are owned outright.
Is it an apartment? The difference between a condo and an apartment is purely legal. It is not by the way the structure looks – a condominium is defined by its form of ownership. Usually, builders tend to build condominiums to higher quality standards than apartments because of the difference between rental and sale markets. When it comes to house and lot versus a condo, homeowners purchase the house and the land underneath, whereas condo ownership only includes living space in the condo unit and a portion of the common area.
What is investing? For starters, it is the act of funding or committing capital to a project with the intent of generating income from it. When it comes to condo investing, it is the act of purchasing a condominium unit with the intent to have it rented once the structure is ready. However, there are some factors that a potential investor needs to know prior to purchasing a condo – here are some points to ponder.
The waiting game. Aside from the ‘good stuff’, potential investors have to keep in mind that, initially, it is a waiting game. When purchasing a property at market value or at pre selling prices, it is important to know that it takes time before the units are turned over. ‘Can my money wait that long?’, ‘can I afford to wait that long?’ are just some of the questions that need to be asked before investing. Moreover, it is also important to choose a dependable real estate developer.
Be in the know. Is your property strategically located? Location is important and highly relevant especially when it comes to real estate. Of course, location is congruent to your target market. Every location has a different market. Location determines the sustainability of your rental income, as well as affect the possibility for a higher monthly rent. A good location, according to experts, is one that is accessible to basic needs – in the likes of public transportation, supermarket, restaurant, etc.
Rent versus mortgage. Your rent should exceed your mortgage.
Owning a condominium has its perks. But it is important to be equipped with knowledge to make it work. In Iloilo, there are many properties up for grabs that are very good investments. One notable property developer in the city is Megaworld Corporation, and under its wing are dubbed as ‘Iloilo’s finest condos’. Learn more about it here: Megaworld: Iloilo’s Finest Condominiums. Also, for updates about condo investing, reach out in the contact form below.