08/09/2013
Investing In Condos The Right Way
Normally, when you buy a condo, you expect the value of it to appreciate. Sorry but that is not how we invest. Predicting that the price will go up, is “speculation” and not investing.
The right way to invest is through cashflow, based on rental income. Real estate investing I quite different compared to other investment vehicles such as stocks and forex. Real estate investing requires active participation so that you have control over your investment. The good and the bad is both on the word “control”
It’s good that you have control, and it’s the positive side. However, the bad thing is, you have to control it, and it’s a lot of hassle. If controlling is your thing, then good, you can do it. If not, then you have to hire a good property manager and operate your condo property.
A five unit condo can have you earn a lot and allow you to get another unit. Once you add condo units in your portfolio, you are actually compounding your returns little by little until you build up your equity or wealth.
The right way to invest in condos is, to lease it out, let the rental proceeds make your retirement and let some portions of the proceeds to buy more condo units.
