There are many great benefits to adding Detroit condos and townhouses to your Detroit portfolio! Learn more in our latest post!
While a savvy investor will stack their portfolio with real estate, they may overlook the benefits of investing in a condo or townhouse. Below, we discuss some of the great benefits investing in a Detroit condo can offer!
When you own a condo, you’ll typically be free of handling landscaping and maintenance to the exterior of the building. While you will be under the jurisdiction of an HOA, you will also avoid the costs and hassles of maintaining these things yourself. Your maintenance costs will be considerably lower and you’ll save time if you would normally do those types of things yourself. As such, you will need to make sure your tenants do not cause any damage to the exterior of the buildings or to the landscaping.
Buying a condo is usually less expensive than buying a single-family home. You can typically acquire a condo much more easily than a single-family home, giving you a great start on your real estate investment journey. When shopping for condos in Detroit, make sure that low-priced condo you found is actually a good deal, and not something that will end up costing you in the long run.
A Larger Rental Pool
There is typically high demand for condos and townhouses. When you own a condo, you’re likely to attract a larger pool of potential renters because of its affordability. In addition, most communities offer amenities and benefits a single-family property isn’t able to offer. For example, by living in your condo, your tenant may be able to access a pool or tennis courts as a perk of living there. Use these benefits when marketing your property to potential renters or buyers!
Sure, you may have real estate in your investment portfolio, but it always pays to have different property types. Having commercial investment, single-family, and multi-family investments can help give you some protection during market changes. Detroit condos and townhouses are low-maintenance ways to add value to your real estate portfolio. They are low-maintenance and in demand by people of all demographics and stages in life. After buying a few properties, you may discover that investing in Detroit condos and townhouses has been your perfect niche all along!
Investors will often purchase a condo as an investment upfront and for their own personal use down the road. A condo is great for retirees and can also be a wonderful vacation home. A condo is a perfect size for a quick family trip or a retired couple that requires less space than a large family might. Lower maintenance makes condo investment a great option for investors looking to buy Detroit real estate.
Lower Taxes and Ownership Fees
Owning a condo will usually provide you with a lower property tax bill as opposed to its single-family counterparts. Lower taxes mean lower ownership costs, which equates to more money in your pocket. You will also avoid having to pay for landscaping and maintenance to the exterior of the building. The convenience and simplicity of owning a condo is the perfect draw for many local investors.
Before buying a condo in Detroit, you’ll want to make sure you are familiar with and accepting of the community’s rules and bylaws. You don’t want to have a plan in mind, only to find out you aren’t able to rent out the condo to the tenants you desire. Many associations have rules about this, so make sure you are purchasing in an investor-friendly community.