Buying a home is about so much more than deciding where you want to live and what property type you want. From single family homes to townhomes and condos, there’s a lot to consider when purchasing a home or buying an investment property — especially when it comes to whether you’ll make or lose money over time.
No matter the property type or city you’re interested in, you’ll almost certainly want to consider how much your investment will pay off over time. Everyone understands that stand alone homes go up in value, but there’s always some lingering doubt about whether or not the same is true for condos. So we’re here to give you the answers you’re looking for and a few tips for boosting your condo’s value as well so you can make the most of every dollar you put into your home.
Whether you’re buying a condo as an investment property or simply have a few questions to ask before buying a condo, chances are you’ll want to know whether or not condos are a good investment property.
The short answer is yes! Condos absolutely can be a great investment as either a home or an investment property Like single family homes, condos do appreciate and go up in value over time. There are a few extra things to consider when it comes to buying a condo, though.
The first is the homeowner’s association, or HOA for short. HOAs are essentially mini governing bodies that run a condo building. A good HOA can make living in your building a dream while a poorly managed one can lead to additional stress, so it’s worth it to interview HOA leadership before you sign on the dotted line. HOAs also come with HOA fees that are paid monthly, so you’ll want to figure that cost into your return on investment calculations.
Next, if you want to rent or Airbnb your condo while you’re away, you’ll also want to make sure that this is allowed in your building. HOAs are usually responsible for the rules and regulations around rentals as well, which is especially important for investment properties.
While there are certain things like pre-determined HOA rules that you can’t control, there is still plenty you can control when it comes to upping the value of your home. Major remodels are always an option, but for those who want to keep things as simple and affordable as possible when raking in the biggest bang for your buck, here are some accessible upgrade ideas for your condo:
- Open up your floorplan
According to the 2021 What Home Buyers Really Want survey from the National Association of Home Builders, a whopping 85% of buyers are searching for an open floorplan between the kitchen and dining room. An open plan between the family room and the kitchen is desired by 79% of buyers while 70% prefer an open floorplan between the family room and dining room.
- Upgrade appliances
Especially if you have a luxury condo on your hands, upgrading your unit’s appliances to the latest models with all the bells and whistles can be an easy way to boost the value of your condo. If you pair an appliance upgrade with an expanded kitchen remodel that tackles floors and cabinets as well, you can expect an increase in home value that ranges from 3% to 7% according to Consumer Reports.
- Redo flooring
According to data from the National Association of Realtors, more than half of home buyers (54% to be exact) are willing to pay more for a home if it has hardwood floors. Don’t worry, though. You don’t have to put hardwood in every room. As long as you have hardwood featured in key places like your home’s main areas (think living room, kitchen, and hallways), you can get away with other flooring types like carpeting in bedrooms and other cozier areas. The key to making it work is consistency — stay away from more than two or maybe three types of flooring throughout your home.
- Convert or add a home office space
Even before the surge in working from home that the pandemic brought, the number of people working from home has risen an incredible 159% since 2009. Whether it means converting a bedroom or other extra room to a home office or finding a quiet and secluded area to stash a desk and a comfortable work chair, buyers these days are absolutely looking for a home where they can both live and work.
- Invest in a parking spot
If your condo unit comes with a parking spot or two included, then you’re in luck — you already have this value-add element covered. If not, it’s something you should consider investing in if you want to make a profit on your condo. Many buildings offer a parking spot for an additional monthly fee. Otherwise, you can see if there are parking facilities nearby where you could reserve a space since a unit with parking will beat out a unit without it any day.
High-rise living has so much to offer. From living in the middle of an urban oasis and living a walkable, car-free life to taking in unobstructed and jaw-dropping views from your bedroom or living room, the perks are practically endless. One of the b...