While considering the various types of properties available for investment, you may wonder if condos will make a good investment in 2021. Visit Pasir Ris 8 and get an idea about the services offered by Kerry and Allgreen properties.
While there’s no way to ensure your condo investment is good, here are some of the factors you should consider in determining whether investing in Pasir Ris condominium is right for you.
Condo Association Restrictions
Buying a condo comes with its own set of restrictions that you may not be used to encountering with other types of properties. Be sure to carefully review condo association restrictions to make sure they don’t interfere with your investment strategy. While a condo located in a luxury area or a popular vacation destination can be a great short-term rental opportunity, you may not be able to rent the unit freely. This is partly due to the fact that ownership of your condo involves shared space with other condo owners in the community.
In general, condos are less expensive to buy than single-family homes, which means a condo can be a safer investment in terms of the amount of financial risk. Also, the lower cost means you won’t have to juggle such a large financial burden as long as your property feels empty looking for a tenant. This also means that you are less likely to get into a financial situation if your condo remains empty for a period of time at a later date.
Obtaining a mortgage
While condos are generally less expensive to buy than single-family homes, sometimes it can be more difficult to get a home loan for this type of property. Therefore, if you are investing in Pasir Ris condominium, you will need to be prepared to jump some additional obstacles before the loan is approved.
The Federal Reserve is raising interest rates for the real estate market. In 2021, but these increases won’t be as dramatic as they were in 2020. Therefore, you should be sure to take into account the increase in the cost of interest when budgeting your purchase, regardless of the type of property you are buying.
While condos generally appreciate their value, they tend to appreciate themselves at a much slower pace compared to single-family rental properties. So, if you’re considering the investment it’s something, you’ll invest in a few years to make a profit, you’re not likely to see the profits you expected to make. On the other hand, if you’re looking for a long-term rental option, the slower appreciation rate may not be an important factor for you.
Tax benefits are among the benefits you enjoy as a real estate investor, but you’ll be surprised to learn that not everything is tax deductible with a condominium. While you can deduct the cost of repairs and other expenses paid for condo maintenance, things such as condo fees are not deductible.