Is buying an office condo a good investment?
“Buying an office condo makes all the sense in the world. It allows us stability and control over the facility, allowing us to plan for growth and control our own destiny. Even if the property does not appreciate — and it already has — we’re still building equity. It gives us a way to plan for our retirements.
Do office condos appreciate?
We’re not saying that prices are ready to spike upward, but downside risk has certainly diminished. Even a small amount of appreciation in an office condo can significantly reduce your effective cost of occupancy.
How do office condos work?
Office condos allow owners to lock in a stable rate that is impervious to surrounding rents on the rise. Buyers who invest in an office condo located in a hot area for development, can find themselves sitting pretty on their unchanging payment, while rents around them soar. There are tax advantages as well.
Can condos go up in value?
In general, condos appreciate in value at a slower rate than single-family homes. … Even though condos generally appreciate at a slower rate than single-family homes, they’re still likely to increase in value over time. Some of the factors that can impact appreciation include: Location.
What is a medical condo?
Buying space for a medical or dental practice makes the owner a landlord, collecting rent from the business and thereby sheltering income generated from patient care.
Can a condominium include commercial owners?
A residential condo association typically contains only residential units. However, condo associations that are primarily residential may also be called “mixed use” because they also include some units for commercial owners (and commercial can encompass retail, restaurant, or office space).
What is an industrial condo?
An industrial condominium is a type of industrial property. Typically, each unit owner has to pay a regular fee to the association (called the “condo” or “assessment”) which is then used to maintain common areas, pay common utility bills, maintain landscaping, remove trash, etc. …
Why should you never buy a condo?
Less Space and Flexibility. Another one of the reasons not to buy a condo is that you have less space and flexibility in how you use your place. Some condos offer owners extra storage space or possibly a basement, but you’ll still likely have a smaller, more compact living environment than you would in a house.
Is a condo a bad investment?
Let’s cut to the chase: Yes, condos are a fine investment. You just don’t want to get a junky one that’s poorly managed. … Don’t get us wrong: Buying a condo is still one of the most expensive purchases you could ever make. But a condo is typically tens of thousands of dollars cheaper than a single-family house.