The pandemic has greatly changed what many people are looking for in a residence. Since people are spending less time at school or the office and more time at home, renters want more privacy and space.
The difference between apartments and condos can make or break your living experience, depending on what you’re looking for. Apartments and condos have differences in ownership, management, amenities, maintenance, rules, and costs. There are pros and cons to each, and the
Is buying a condo a good investment for 2021? This is a question on the minds of many real estate investors as 2020 draws to an end.
As you may already know, condos (or condominiums) are multiple individual units housed in one complex or building. Unlike apartment buildings that are owned by one entity, condo units are individually owned. Condo owners share common facilities such as pools, gyms, and grounds, for which they are required to pay a monthly maintenance fee.
To answer the question “Are condos a good investment for next year?”, we need to look at some of the pros and cons. We also need to consider some recent condo market trends as they have been impacted by COVID-19. Let’s get into it.
4 Reasons Why Condos Will Make Good Investments in 2021
Here is why condos are a good investment in the US housing market 2021:
A recent Redfin report revealed that year over year condo sales dropped 53.5% in May and 31.3% in June 2020. Before coronavirus broke out, the price for condominiums had hit a 3-year high in January with a 9.7% year over year increase. However, the sale price of condos has been falling steadily since March. With the pandemic being far from over, condo prices are not likely to increase significantly in the near future. As a result, you are likely to get a good deal if you invest in a condo in 2021.
One of the main questions that potential real estate investors ask is ‘Do condos appreciate in value?’ Not only are condos cash flow properties, but they generally appreciate in value over time. Even though COVID-19 is driving prices down right now, once the nation is past this crisis, condos are likely to continue back on their path of historical appreciation and price growth.
However, the rate of appreciation of property boils down to location. A good location is characterized by the following factors:
- High population growth
- High median income
- Availability of amenities such as restaurants, shops, parks, schools, and hospitals
- Low crime rate
- Accessibility to public transportation