Investing in a Richmond condo or townhome can be an inexpensive way to add to or start your real estate portfolio. Learn more in our latest post!
There are a number of great reasons why investing in a condo or townhome can pay off big. Below, we offer some reasons why, what you need to look for, and what investing in a Richmond condo can mean for you!
You can typically pick up a condo or townhome in Richmond for a much lower price than a single-family residence. It can be an easy and affordable way to begin a real estate portfolio or add to an existing one. Many first-time property investors choose to purchase a condo in Richmond as a way to build equity, without the demands of a single-family house.
A condo or townhome in Richmond will be desired by both renters and buyers alike. The affordability in addition to the many amenities provided can make the demand for your condo much higher than that of a single-family home. Maintenance-free landscaping, pools, spas, tennis courts, and play areas are all wonderful amenities that will attract people to your property.
A condo or townhome in Richmond will require less maintenance from you than a single-family property would. When you own a condo, the landscaping and the maintenance to all shared areas are included with your HOA fees. The association will also handle problems with the exterior of the building, letting you off the hook for things like painting and damage to the roof.
What To Watch Out For…
Imposing HOA’s – When you live in a managed community, you are at their mercy. You can’t knock down a wall, or change the color of your unit, or rip out the bushes in the front yard. You may have to deal with an HOA that is overbearing, with strict rules that you and your tenants may find exhausting. Before choosing the community, get to know a bit about the HOA. Ask questions, talk to residents, and make sure you understand how far they are able to reach.
Tenants Causing Problems – When you are renting out the house to tenants, especially ones you don’t know personally, you will need to make sure they are the kind of people who aren’t going to bother others in the community and who have a sense of pride in where they live. If one of your tenants is causing disruptions within the community, the penalties are likely to fall back on you.
Disagreement With Neighbors – Living in a condo community puts you in close proximity with your neighbors. A disagreement that gets out of hand can cause stress for years to come. You and any tenants you choose to rent to need to be able to resolve any differences fairly and without escalating a situation further than it already is. When choosing where to live, try to get a feel of the neighborhood and what the people living there may be like. Are they friendly? Out and about? Or do people seem to keep to themselves?
Rising HOA Costs – HOA costs will typically rise over time. Keep that in mind when thinking about your long term profits. You may also be subject to assessments if there are any major repairs or upgrades being done to the community. Your dues cover maintenance and minor repairs. But things like new roofs, siding, paving, and painting may all be subject to different assessment charges. Make sure you know what to expect, how much rates can rise, and how much is spent in assessments on average each year.