Whether buying a loft, condo, or single-family home, most people find the purchase necessary to provide shelter, warmth, and a place to live. Still, there are other factors. Since buying a property is a big expense, most buyers want to know they are making a smart investment before they pull the trigger.
It is hard to imagine a scenario in which people miss out on the economic downturn of the last few years and, in particular, its effect on the real estate market. As a result, many people have asked me if buying a condo or loft is a smart investment.
As is often the case, the answer is: “It depends.” If you plan to buy a loft and condo and sell it quickly, known as flipping, then buying one may not be a smart investment. That goes for many types of real estate, not just condos and lofts. But let’s take a look at some of the reasons why lofts and condos are still a good investment in my opinion.
Demography
As the Baby Boomer generation ages and approaches or reaches retirement age, many people will look to downsize. For some, that means moving from a single-family home to a more manageable condo or loft. Retirees often want to enjoy life more fully, whether that means taking more vacations or simply worrying about things other than home maintenance. Lofts and condos allow them to do both.
Lease
Urban areas have the highest density of loft and condominium buildings, and also have strong appeal among young professionals, young couples, and people who simply want to live an urban lifestyle. There are restaurants, nightclubs, universities, sporting events, all the things that tend to appeal to young people. Loft and condo buildings are also often close to public transportation, which is a draw for people who don’t have cars or want to live a greener lifestyle.
rental potential
Maybe you live in your loft or condo for a few years and decide to move. Or maybe you just want to own a rental property. Whatever your situation, lofts and condos make great rental properties. Many of the reasons are related to the demographic and location information that I described in the previous paragraphs. If you buy a loft or condo with the intention of renting it out, there are a few things to think about. Chances are you’re not the only person with the same idea, so make it as desirable as possible. That means shopping in a lively part of town, or near a college or university. If your loft or condo is close to where people want to be, or need to be, you’ll have an edge over the competition.