Whether they’re buying a loft, condo, or single-family home, most people view the purchase as a necessary one to provide shelter, warmth and a place to live. Still, there are other factors. Given that buying property involves great expense, most buyers want to know they’re making a smart investment before pulling the trigger.
It’s hard to imagine a scenario in which people missed the economic downturn of the past several years, and, in particular, its effect on the housing market. As a result, I’ve had many people ask me whether 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 applies to 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, in my mind, remain a good investment.
As the Baby Boomer generation ages and nears or reaches retirement age, many people will be looking to downsize. For some, that means moving from a single-family home into a more manageable condo or loft. Retirees often want to enjoy life more fully, whether that means taking more vacations or simply concerning themselves with things other than home maintenance. Lofts and condos allow them to do both.
Urban areas have the highest density of loft and condo buildings, and they also have a strong draw among young professionals, young couples, and people who simply want to live an urban lifestyle. There are restaurants, nightclubs, universities, sporting events – all things that tend to be attractive to younger folks. Loft and condo buildings also often are near public transit, which is a draw for people who don’t have cars or who want to live a greener lifestyle.
Maybe you live in your loft or condo for a few years and decide to move. Or maybe you just want to own some rental property. Whatever your situation, lofts and condos make excellent rental property. Many of the reasons relate to the demographics and location information I described in the paragraphs above. If you buy a loft or condo with the intention of renting it out, there are some things to think about. It’s quite likely you won’t be the only person with the same idea, so make it is desirable as possible. That means buying 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 a leg up on the competition.