The buying, selling or renting of real estate has become quite a positive investment, according to some property investors. As of late, it has been observed that a great percentage of the population opts for a condo as a home and thus, some property investors swear by the benefits that are provided by investing in a condo. However, what do simple statistics say about the percentage of profit when it comes to investment in relation with condos? You can find out if you keep reading on!
Factors to Accurately Estimate
Before a person goes on to estimate their profit in a condo investment, one should accurately estimate the following charges:
- Real estate taxes to pay.
- Any needed repairs.
- Rent expected to be received.
- Advertisements when vacant.
The reason why these charges should be heavily laid importance to is due to the fact that whatever the amount of money a person might make through this investment, the above calculations will need to be deducted. Important advice to consider is getting a condo where the above charges are minimal like, for example, the under-construction River and Fifth Condo will prove to be an investment which will require minimum repairs as it will be new.
A Basic Idea of The Profit
Having all the needed calculations in hand, now let’s imagine a hypothetical condo which is selling for $55,000 and the rent per year calculated to be $9,000 which represents a 16.4% return. Now, deduct a hypothetical cost of the above-mentioned factors ($3,600) and the rent would be calculated to $5,400 with a 9.8% return, which is still quite pleasing!
If the necessary costs are considered with logic then investing in a condo can prove to be quite profitable.