Guest Blog By: Karl Kennedy
Not everyone dreams of owning a single-family home and if you’re one of these people, a luxury condo might be what you’re looking for.
There are several advantages to condo living that include a relative lack of maintenance on your part. You’ll also have access to a range of amenities like pools, fitness centers, and even a community movie room complete with a laser projector.
While a luxury condominium can be a great place to live, you still have to consider if it’s a sound investment.
Benefits of Investing in a Condo
When you purchase a property you expect to see a return on your money, typically when you sell. Luxury condos do hold and normally increase in value, especially if it’s located in a prime location.
The beach, amusement parks, golf courses, and downtown are all areas where the value of the condo generally increases over the years. The value for a single-family home can also appreciate, but the downside is that you generally have more money invested in it.
Luxury condos are often priced several thousand dollars cheaper than a home, even when it has a stunning beach view.
Even if you’re not ready to give up your front yard for all the amenities that come with luxury condo living, it will still make a great vacation home. When you’re not staying there, renting it out can help you start realizing your investment before you’re ready to sell.
You can choose when the condo is rented, keeping times open when you want to stay there. Since the condo comes with management staff, you don’t have to worry about repairs when you’re not there.
The lack of maintenance is one of the primary draws. Everything from yard work to keeping the pool and other amenities clean is the responsibility of the complex. Some fees are shared by you and others that cover maintenance, but it is significantly less than having to pay for repairs by yourself.
How to Know If a Condo is a Good Investment
The first aspect to consider is the location. If your luxury condo isn’t close to any area attractions, it can be difficult to entice renters. If you are planning on living in the condo full-time, then the location is up to you.
One of the key indicators that show how good of an investment the condo will be, is the management company. A poorly managed condo will decrease in value. There are a few signs to look for that will give you an idea of how the complex is managed.
- The grounds and amenities should be clean and in good repair.
- There are more residents than empty condo units.
- Maintenance has reserves for roof and parking lot repairs, along with paint for exterior and interior.
- The HOA is current with its bills.
Several empty units can indicate a problem with the maintenance department. Residents may not be happy with how the building is managed. It can also mean that there aren’t enough funds in the HOA to keep up with maintenance.
A luxury condominium can be a good investment whether you’re living there full-time or renting it out when you’re not there. You do need to keep a few things in mind to ensure you don’t take a financial loss.
If you’re planning on renting it out, a good location is a must. You also want to pay attention to how the property is managed and ask the HOA plenty of questions. If you’re happy what you see and hear, it might be the investment you were looking for.