Condominiums are great investments. For one, the economy of scale is astounding. In simpler words, an investor can manage a lot more properties than mere residential homes; hundreds more, even. In addition, the sheer number of properties on hand make it more convenient for the investor to tap an onsite manager and maintenance person to oversee the property. A property manager allows the investor to reap the benefits of his property with less work on his part.
Inflation isn’t a huge problem with income-producing condos. Unlike other investments, real estate can protect itself against inflation because property values and rents tend to increase over time. Furthermore, real estate investments sport the highest correlation to inflation as opposed to other asset types like corporate bonds. Nevertheless, the impact of inflation on the condo market warrants proper management to prevent it from spiraling out of control.
Still, perhaps the most important advantage of all involves overall income. Condo assets are generally secured by leases that provide a regular income stream, which are found to be significantly beefier than stock dividend yields. Furthermore, asset appreciation is excellent due to internal factors like proactive management, and external factors like supply and demand imbalances. In simpler words, commercial real estate reels in more profits.