6 Reasons a Move-In Ready Condo Is a Great Investment Property
There are so many great reasons to purchase a condo as an investment property: it will generally attract the highest volume of potential tenants, it’s likely to be in a very desirable location, and as the owner, you’re less likely to need to take care of maintenance yourself if the building has these services in place already.
With all these great reasons to invest in a condo, there are even more reasons to invest in one that’s move-in ready. Let’s explore six great reasons why this is the case.
A move-in ready condo doesn’t require any renovations or major maintenance tasks to prepare it for new tenants. The operations of the condo, such as plumbing, electrical, and HVAC are already modernized and in good working condition, and the fit and finish are such that tenants would be happy with its condition as-is.
Locking In Your Investment
By purchasing a move-in ready condo, your financial commitment is established. There’s no further investment needed in terms of renovations, repairs, or other related costs associated with preparing the unit for tenancy.
This means you’re in full control of your investment budget from the start, and when the value of the property increases, you’re simply reaping the benefits.
Buying a brand new condo rather than one that’s under construction (or being renovated) means you know exactly what you’re getting. All the finishes are complete, the quality of the building is observable, and there will be no unpleasant surprises in terms of problems or repairs.
You can choose the style and finish of your investment condo if you’re interested in attracting a certain type of renter, such as a young busy professional.
Your Earning Potential Is Immediate
When your tenants can move in immediately after you’ve closed the purchase, you can start earning right away. This is ideal if you’ve locked in a low purchase price on the unit before it increases in value. If you plan to use the equity for one condo to purchase another in future, the earlier you can move tenants in, the less you’ll need to invest yourself.
Build Equity Faster
Speaking of building equity…
Because condos are typically a more affordable property to own, you’ll pay down the principle much faster than you would on a single-family home. For this reason, you can choose to use the equity for future investments to build your financial portfolio. As each property gains equity, your opportunities to expand your investment grows.
Building Amenities Are Incentives
When your condo building is already finished, the amenities are also ready for your new renters to use as soon as they move in. Not only can you offer a move-in ready unit to potential tenants, but the amenities on the premises are also a great incentive to entice the right renters for your property.
Who wouldn’t want to move into a brand-new condo and be able to ditch their gym membership for the convenience of their own building?
Added Layer of Protection with Condo Rules
Condo properties almost always have rules and bylaws in place to ensure the property and living conditions remain in livable condition. Other properties don’t offer this extra layer of protection, and as an investor, you could find yourself responsible for costly repairs and maintenance after a tenant moves out. With the condo rules and bylaws in place, your odds of having a condo that’s still in the same condition on move-out as it was on move-in are much higher.
Investing in a move-in ready condo allows you to control your budget better, start earning immediately, and use your investment for future financial growth if you so choose. Compared to buildings still under construction, as well as other styles of investment properties like single-family homes, your investment in a move-in ready condo is the most direct option for a quick financial turnaround.