The newbies to real estate investment are often in a dilemma on whether to choose a condo or a house. A lot of people want to know whether these two offer similar investment benefits. Well, in one word, the answer is “NO”. It’s because although both of them are residential properties yet these two are separate entities. Thus, they come with different investment benefits.
First of all, houses seem to offer better investment returns compared to condos, especially when you are looking for short-term results. Condos are posh residences and hence usually cater to a certain section of populace. But on the other hand, houses have more of a mass appeal. Thus, it’s easier and faster to sell off a home than a condo. So, if you are aspiring for quicker investment returns, you will find houses to be more profitable.
On the other hand, condos are especially suited for long-term investment returns. A condo takes time to find a buyer or tenant. You will have to wait. But when you will find a buyer or tenant, you will know it has been worth the wait. It’s because condos are generally preferred by the affluent class who are ready to pay you the needed price for the perfect uber luxe living assured by your condo.
However, it’s to note here, the demand for condos, especially Executive Condos, are growing rapidly today. One good example would be the Piermont Grand EC of Singapore. The property is yet to be launched but has already garnered 17 high end bidders.
Moreover, condo frees you from dwelling insurance costs and taxes. In fact, with a condo, the landlord is not even liable for the contents of tenants. It’s the responsibility of tenants only. Condos even cost less than houses in regards to purchase price.
So, basically, you should consider your investing needs and expectations first before deciding on investing between a house and condo.