Buying

Do you imagine owning a property in a building with amenities like a beautiful view, gym, pool, social lounge, play area, sauna/spa, and 24x7 security? You&rsquo;re not alone. The desirability of condos hasn&rsquo;t dwindled even today. It&rsquo;s a lifestyle in itself that is intriguing to many investors. But, it&rsquo;s not the only reason that makes condos a good investment. Whether it&rsquo;s the convenient lifestyle, affordability, return on investment (ROI) or overall practicality, buying a condo has benefits that may outweigh those of houses or townhomes. Let&rsquo;s have a closer look at why buying a condo may or may not be worth it.
&nbsp;
<h1>Is Buying A Condo In Canada BC Profitable?</h1>
Let&rsquo;s start with the most important question&mdash;Is buying a condo profitable? The answer is not as straightforward as you may think. Real estate investment doesn&rsquo;t guarantee any specific outcomes. But, let&rsquo;s have a bird&rsquo;s eye view of certain facts that can make condo investments a smart choice.
&nbsp;
<h2>Low Down Payment And Mortgage</h2>
The biggest appeal of condos in BC is their affordability. The average cost of a condo is lower than that of a single-family home, townhome or duplex. Due to the smaller floor area, less accommodation, lack of land, and shared parking spaces compared to other property types, the purchase price of condos is more affordable. If we look at the data, the cost of a condo in British Columbia varies from one neighbourhood to another. For example, the <a href="https://fvreb.bc.ca/statistics/Package202409.pdf" target="_blank" rel="noopener">average cost of a condo in Fraser Valley</a> is $545,000 in September 2024. The average benchmark <a href="https://www.gvrealtors.ca/market-watch/monthly-market-report/september-2024.html" target="_blank" rel="noopener">price of apartments including condos in Metro Vancouver</a> reached $762,000. This is significantly less compared to the average cost of <a href="https://listingsnearby.com/location/new-homes-surrey-bc">new homes in Surrey</a> which is approximately $1.05 - $2 million and $1.5 - $2 million in Vancouver.
This lower purchase price results in a lower initial deposit or down payment. A lower buying price also translates to a smaller mortgage and monthly mortgage payment.
Needless to say, condos are a good entry point for first-time home buyers and investors.
&nbsp;
<h2>Chances For More Equity</h2>
The affordability of condos compared to other types of real estate makes it easier for small investors to build equity. It is generally easier to sell a condo than a more expensive, larger house. Like any other real estate, condos appreciate over time. For instance, because of Vancouver&rsquo;s location and reputation, the benchmark cost of attached homes increased from $490,385 in 2010 to $1,099,200 in 2024 (as per the <a href="https://www.gvrealtors.ca/market-watch/monthly-market-report/september-2024.html" target="_blank" rel="noopener">Real Estate Board of Greater Vancouver</a>). However, these rates vary with market trends, the neighbourhood and global economic factors. With the right guidance and thorough research, buying a condo can provide positive equity in the long run.
&nbsp;
<h2>Minimal Maintenance Responsibility</h2>
Another appealing factor about condos is the &ldquo;walls in&rdquo; ownership. In simple words, the owner is only responsible for maintaining the interior of the condo including the fixtures, flooring, appliances, belongings, etc. Areas like the common lounge room, pool, gym, lawn, hallways, parking space or any other shared facility within the building are maintained by the Strata Corporation. All condo owners have to pay a monthly strata fee which is a maintenance fee used for the general upkeep of communal spaces. This takes away the stress and responsibility of doing many routine tasks like landscaping, snow removal, garbage removal, and maintenance of common areas.
&nbsp;
<h2>Easily Accessible Amenities</h2>
Condos offer a lifestyle of comfort and luxury in the form of on-site amenities. From fitness centres and supermarkets to secure parking spaces and entertainment rooms, it&rsquo;s a quality of life you wouldn&rsquo;t want to miss out on.
&nbsp;
<h2>Cheaper Insurance</h2>
Due to the lower cost and smaller accommodation, condo insurance is generally cheaper than home insurance. Since condo owners are responsible for only the interiors of their units, the insurance can be more affordable. Shared security and safety features like surveillance and 24/7 security also lower the risk for insurance companies, leading to reduced premiums. Condo insurance in British Columbia typically falls between $300 and $1,000 per year, making it generally more affordable than home insurance, which averages around $1,200 to $1,700 annually. Several factors influence how much you pay for an insurance premium, such as the condo's value, the risk profile of its location, the age of the building, and the history of claims in the area. So, while regions like <a href="https://listingsnearby.com/location/new-homes-maple-ridge-bc">Maple Ridge</a> tend to offer more budget-friendly condo options compared to Richmond and Vancouver, these factors will ultimately play a significant role in determining your insurance costs.
<h2> Do Condos Make Good Rental Properties?</h2>
Yes, condos make a good rental property. Based on the desirability of your condo&rsquo;s location, you can choose to make it a long-term rental or a short-term vacation condo (with restrictions) and explore a new source of passive income. Either way, a condo would make a good rental property for multiple reasons.
Strong Rental Demand Owning a condo in a good location increases your chances of attracting high-quality tenants. Condos in Canada are desirable rental properties because they&rsquo;re cheap, require less maintenance and offer an array of easily available amenities.
Good Price to Rent Ratio Condos offer a good price-to-rent ratio because while they&rsquo;re affordable, the owners can take advantage of competitive rental rates. Assessing the high demand for condos in good locations and the desirability of the quality of life they offer, condos make a profitable rental property.
Tax Deductions Any expenses incurred by you to earn rental income are deductible. So, whether it&rsquo;s the condo insurance, strata fee or anything that you may have spent for the upkeep of the unit is deductible. With such benefits, you are looking at a better cash flow which can further be used for reinvestments or managing other expenses.
&nbsp;
<h2>Should You Buy A Condo In BC?</h2>
Before you decide whether to buy a condo or not, here&rsquo;s a checklist of important points that you must consider:
<ul>
<li>The size and layout of the condo unit must be as per your needs.</li>
<li>Building type: concrete high rise or wood frame low rise building.</li>
<li>Good location and easy accessibility to transportation.</li>
<li>Monthly strata fee.</li>
<li>Amenities within the condo complex.</li>
<li>Your budget and closing costs.</li>
<li>History of value appreciation for condos in the area.</li>
<li>Whether you want to invest in a pre-construction condo or a pre-built condo.</li>
</ul>
If you need expert assistance to move forward, Listings Nearby has a team of professionals to guide you through the best condos in BC. Whether you are looking for a pre-construction condo in <a href="https://listingsnearby.com/location/new-homes-burnaby-bc">Burnaby</a> or <a href="https://listingsnearby.com/location/new-homes-north-vancouver-bc">North Vancouver</a>, you can rely on them to find the right property for you. You can choose from high-rise and low rise condos, new constructions or assignments and go through the best realtors and developers in your area for the best deal. Contact us now to discover the best real estate investment opportunities.

Are Condos A Good Investment?

Tags

Be the first to know

Categories

Related Articles