Weighing your investment options to ensure the type of investment home is right for you.
We here at Harbourview District often hear the following questions from prospective investors:
“Which appreciates faster, a condo or a single family house?”
“Are condos a good investment for a rental property?”
“Are condos a better investment than a single family house?”
In today’s blog, “Condo vs. Single family House Investment”, we delve into the answers to these FAQs… as well as other factors to consider when it comes to picking an investment property.
First Things First: Which Appreciates Faster, Condominiums or Single-Family Homes?
The answer is, as always, “It depends.” However, there are a few factors that make a condo building the preferred real estate investment for the majority of investors:
- “Package deals” for large investors, who are provided the opportunity to buy multiple condos for sale at the same time. These advantageous condominium purchases can result in a higher return on investment due to getting multiple condos for a reduced batch price
- In an emerging market or community presale condo purchases allow an investor to put very little down while paying today’s prices for an investment that could see significant market gains by the time they even have to pay a mortgage payment.
As mentioned above, of course, there are multiple reasons why condominiums appreciating faster than detached single-family homes is not a hard-and-fast rule: other factors, such as the demand for condos, the context of the current real estate bubble, the location, the cap rate, and monthly cost of a condo will heavily influence whether it will appreciate faster than an equally as unique single-family home. When in doubt, contact us here at Harbourview District if you would like to receive professional help weighing up your investment options.
Condos as Investments and Short-Term Rentals
Versus other property types, such as detached houses, condominiums are attractive as short-term rental investment options due to having lower median prices than comparative single-family or multi-family homes, no exterior maintenance, and ample access to amenities.
As rental properties and investments, the appeal of condominiums and condominium communities are as follows:
- Whereas single-family and detached homes are often located in suburban areas, the neighbourhoods condos are located in vary widely. At Harbourview District you can enjoy the conveniences of urban living with amenities in walking distance.
- Lower maintenance fees as a trade-off for condo monthly fees, which cover amenities and maintenance
- Little-to-no individual expenses, as condo fees generally cover these (examples include garbage collection, pest control, and condo insurance cost)
In comparison to condos, traditional family homes have significantly more individual risk and costs attached, making them the less conservative option for the majority of investors.
Harbourview District: Your One-Stop Shop for Investment Resources, Guidance, and Your Next Condo Purchase
Here at Harbourview District we act as both your first stop for investment resources and guidance here in British Columbia, but also a reliable source for high-quality condos for sale.
With pedestrian streets, bike-friendly lanes, and ample green space, Harbourview District combines the best of coastal small-town living with big-city amenities. Our unique mix of homes and recreational, educational, and work amenities are interwoven into a master-planned community that you have to experience to believe.
Boasting mountain views, lush hiking trails, ocean vistas, and the best of what downtown Nanaimoo has to offer, Harbourview District is quickly gaining a reputation for being a go-to choice for investors looking to have an investment property here on beautiful Vancouver Island. With everything residents, and investors need being mere minutes away (including well-loved eateries, transportation by both bus and car, myriad parks, and a harbourfront seawall), our community’s affordability and contemporary interior finishings make a culturally-rich environment that makes our units for sale a fantastic opportunity for investors.
What was once the epicenter of Nanaimo’s booming coal mining industry is undergoing a major revitalization to become Harbourview District’s surrounding area, with the majority of Nanaimo’s Victorian-era homes and miners’ cottages being carefully restored. Harbourview District itself is being developed by Parkshore Projects, who is staying faithful to the neighbourhood’s Official Community Plan as created by the City of Nanaimo and the South End Community Association. Over the next five years, Parkshore has vowed to create 300 homes, all of which are to be made up of multiple mid-rise condo buildings linked by lush green space and interwoven walkways.
Does Harbourview District sound like the property type you are seeking for your next investment? If so, reach out today to claim an investment unit of your own.