Most real estate professionals will say investing in a condo is not as good as investing in a home. This “blanket statement” is untrue as condo investments can be just a lucrative if not more lucrative than home selling. If you own a condo and are upgrading to a home, the question you should ask yourself is, “Do you have to sell the condo”? Traditionally homes appreciate in value a lot more than condos, which is why most people think they are such superior investments. But condos have additional ways to generate capital. Renting out a condo is significantly easier than renting out a home and can generate stable income over a long period of time.
Many people buy condos, then in a couple years want to upgrade their real estate investment to a home. They sell their condo and use the money generated from the sale in the home purchase which is usually more expensive than the condo. But, if a home buyer can afford to keep the condo and buy the home as well, they have an opportunity to make more money in the long run. Renting the condo and using the rental money to pay off the mortgage of the new home will increase a real estate owners real estate investment portfolio. Eventually the condo owner will become a condo and home owner with a condo that continues to generate revenue.
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