"If I fall in to a price range where I can only afford a condo/townhome, should I still invest in real estate?"
YES
But there are some things to consider.
A single-family home is typically going to be a better investment over time, as they tend to appreciate (grow equity) at a higher rate.
But if a condo/townhome is your best option, there are still some great strategies you can use to build equity.
Sweat equity: you can buy a place that is outdated and in need of basic updates. Update the home to current trends (do it yourself to further maximize your ROI) that way when you go to sell you have more equity to play with.
Location: purchase in an up and coming area that is projected to have high growth over time.
Other things to consider:
If the property has an HOA, that will be more money going out of your pocket, so make sure the association covers enough utilities/services to make it worth it for you.
More importantly make sure the Home Owners Association does not have a rental cap, a restriction on the number of homes that can be rented if you plan to have the property as a rental or plan to rent it in the future.
This is a big topic that I have a million other tips on, so if this is something you are curious about/have questions about I would be happy to talk further.
Contact us HERE and we will reach out.
