Condominiums have become a popular housing option in recent decades. There are a number of reasons for this, but the bottom line is that their changing status in the real estate market often makes them a good buy for investors. Consider these reasons to invest in residential condos.
They Are Desirable
As more and more people move into urban areas, have less time for the burdens of homeownership and would prefer to rent rather than buy, condos have become a more attractive housing option. The costs of buying or even renting a single family home in most metropolitan areas are very high and many people would prefer the flexibility of renting a smaller space instead. As a type of housing, condos match up well with that preference. They tend to appeal more than apartments do because of, generally, a more upscale style of living and a stronger sense of community. Many apartment complexes have even been converted into condominium buildings, with no end in sight for this trend.
The Population Is Aging
Another reason to consider investing in condos is because they are especially popular among senior citizens, and the portion of the population that is older continues to grow at a fast rate. In fact, many condo communities are only for residents 55 and older. Seniors are attracted to condos for several reasons, with the foremost being that the group association takes care of tasks they can’t or don’t want to perform anymore, such as snow removal, lawn care and exterior maintenance. Many seniors on fixed income would prefer to rent, making condos a great choice for an investor who wants to focus their niche on catering to the needs of seniors.
They Diversify Portfolios
Real estate investors should always be looking for ways to diversify their portfolios. Just like when investing in stock, branching out into other types of investments protects any investor from loss if one area takes a downturn. Owning a diverse variety of housing options allows investors to appeal to more renters and therefore expand their bottom line. It is also usually easier to sell an individual condo than other types of housing, particularly entire condo or apartment buildings. Another advantage of investing in residential condos is that investors don’t have to handle many of the maintenance issues, which are instead the responsibility of the association.