It’s a great question, especially as single family home prices have skyrocketed. Before buying a condo (or any investment), here are three goals to consider:
1. Can the rent cover your mortgage, plus 5-10% costs, plus the HOA fee? To make it a sensible investment, you want to cover your financial bases.
2. Do you want to sell within 7 years? If you plan to sell quickly, then you need to buy in a rising market. If you plan to hold the property, then you have more flexibility, because you’ll build more equity over time.
3. Do you want to hold until you retire, then move in? This works if you can find a condo that is easily rentable in the location where you want to live when the time comes.
4. Are you looking for cash flow? To have money flowing in, above and beyond what you owe for a mortgage, you’ll need to find a property that’s cheap compared to rents, or put more money down (or pay cash), or buy smart in a sharply rising rental market.
In addition to your goals, always evaluate the stability of the HOA before buying. If you are interested in a condo investment in our area, let’s meet and look at options. (718) 399-3320