There are two types of condominium investment. One is for residential, and the other is for business.
Buying a condo that’s right for you is a good investment. But it’s somewhat disheartening to recount how much you initially spent on it and how much you’ll need to spend further monthly. Although your property’s value will eventually go up, you can’t just sit back and wait for that to happen. Making money with your property can be a great idea.
Here are two ways to make money with your condo, and let me break it down one by one for you.
1. BUSINESS RENTAL
This is the most obvious way to make money with your property. But renting out your condo can be very risky because it might lead to incurring damages or encouraging theft. As a landlord, you should be prepared and well knowledge about renting your property. (Check out my other videos on how to rent out your condo). You should also ensure your property.
There are three types of rental, we have daily, monthly, and long-term lease. It is up to you on what would you prefer, it is all about income, right?
Urban professionals have been a highly lucrative tenancy market. These working adults, young or old love condo proximity to their office and favorite places to unwind. They also love the convenient amenities located right in the building such as gyms, recreational areas, pools, atriums, and the like. POGOs are an example of this, and one of the big markets right now in the rental industry. Students can also be a big market to top on. Especially when your property is near schools. Some people are looking to stay in the city for a couple of days and are interested in having what feels like a second home, a place where they could cook and do the laundry. Others prefer a place that offers more than just a room, but still with a price of that of a hotel or even cheaper.
Did you know that you can also rent out your parking space? If you have no car, or if you are leasing out your condo to tenants that do not own one, you may opt to rent out your parking space separately. You can offer your parking space to your neighbor as well. There are unit owners who cannot afford to buy a parking space yet and would rather just rent one for time being.
2. BUY and SELL
In buy and sell, there are different ways to make a profit, and you have to think about what kind of investor are you.
a. Short Term Buy and Sell – Meaning, buy a condo at the pre-selling rate and resell it after a year or if the price of the property increase by a minimal value. The profit may not be big, but the return on investment is assured.
b. Mid Term Buy and Sell – Meaning, buy a condo at pre-selling rate and resell it when it’s ready for occupancy. You have to wait for three to five years before you will have your return on investment.
c. Long Term Buy and Sell – Meaning, buy a condo at the pre-selling rate, wait for the turnover, dress up the unit, make it fully furnished then resell it. This method is perfect for you if you are willing to let your money sit for a few years with no expected profit, besides, Real estate properties appreciate in values over time. By this time, you can find a buyer who is eager to move into a brand new, fully furnished unused unit.