With a growing number of new developments, there are more and better condos for sale in Boston. They seem like a lucrative investment, but it’s worth evaluating this option in greater detail before you go for it. Here are the essential factors that you need to consider.
Traditionally, condos have been known for increasing their value at a lower rate compared to single-family homes, but this trend is reversing. Among the main reasons for this is the growing demand for smaller and more affordable homes which come with exclusive community amenities like security, children’s playgrounds and sports facilities. This is especially the case in bustling cities like Boston where there are many stronger selling points of properties than space, with perhaps the most notable one being location.
You don’t have to be a real estate expert to come to the conclusion that condos for sale in Boston have a huge rental potential. The population of the city is constantly on the rise with many young professionals flocking in to work in the healthcare and other growing industries. Condos are much more appealing to this segment of the rental market compared to single-family homes primarily because of the factors mentioned above – location and amenities.
The other major factor which you have to take into account is that demand has traditionally exceeded supply in the Boston rental market and this trend is expected to remain in the long term. This naturally pushes rental prices up and the inventory is practically always low. This results in high and stable rental income and extremely small, if any, gap periods during which you won’t be generating income.
Challenges to Consider
Perhaps the major challenging factors when it comes to buying a condo is the association fee which the owner has to pay for the maintenance of the common areas. It may add considerably to the property expense ratio which lenders take into account when reviewing mortgage applications. This, in turn, can make it more difficult for you to obtain the loan amount that you want at the most affordable interest rate. Your best bet is to do calculations to get your financial position sorted out. In general, you should always include the association fee when determining the total monthly expenses of condo ownership.
Should you invest in one of the condos for sale in Boston? The city is among the 20 best places for real estate investment in the United States in 2017, with home prices marking an increase while still being undervalued.