By: Ariel Kormendy | Co-Owner | Real Estate Agent
Whether buying your first home or investing in a rental property, choosing the right type of real estate is crucial to realizing positive returns (ROI).
The conversation comes up often, and my answer lately has been quite simple: Buy a condo or a three-storey “back-to-back” townhouse (also known as “village homes”.)
Affordability and Liquidity of Real Estate
My reason is simple; first, and foremost, these properties are generally the cheapest option. With house prices consistently increasing over the years, affordability is key. There will always be a market for affordable homes. As a result, the disposition of these properties is easier, making your investment more liquid.
Keep in mind, some of the best deals are found in the less upgraded, and less attractive homes.
They also make for great rental properties as the demand for affordable rentals continues to increase. The opportunity to break-even or cash-flow positive is much greater as compared to larger homes.
Maintenance and Carrying Cost
The upkeep and maintenance of condos and village homes are typically less too. There are no backyards to maintain and no basements to flood. This means your annual costs to carry the property are lower.
Keep in mind, some of the best deals are found in the less upgraded, and less attractive homes. Buying a home that is a little more “basic” means that you’re keeping the purchase price in-check. It also gives you the opportunity to improve the property yourself. Not to mention, highly upgraded homes appeal to more people, meaning you may be in competition to purchase.
Making the right decision as a first-time homeowner or investor is crucial to building wealth. Don’t do the legwork on your own, hire a professional real estate agent and rely on their guidance to make the right decision.
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Ariel Kormendy is co-owner of The Kormendy Trott Team and KT Property Management Inc. He’s not only an experienced real estate agent in Milton, Ontario but an investor of real estate too. For more information about buying or selling real estate, feel free to drop a comment below or DM us on Instagram.