“It’s tangible, it’s solid, it’s beautiful. It’s artistic, from my standpoint, and I just love real estate.” – Donald Trump
Are you looking to diversify your investment portfolio? It is commonly accepted that investing in real estate is one of the best investments that anyone can make. However, the caveat is that you do your homework well and purchase an investment property in the right area and at the right price. Therefore, the question that begs is whether the purchase makes sound financial sense or not.
Before we look at why you should purchase one or more downtown Durham condos, let’s look at what a condo is and what the term “downtown” means:
In a nutshell, a condo or a condominium is “one of a group of housing units where each homeowner owns their individual unit space, and all the dwellings share ownership of areas of common use.” Furthermore, the individual units usually share walls, but that isn’t a requirement. The main difference between a condo and different home is that there is no individual ownership of a plot of land. All the land in the condominium building is owned by all the condo owners simultaneously.
Essentially, the term “downtown” is mainly used by North American English speakers when speaking about a city’s central business district (CBD).
Therefore, a downtown condo is an apartment or individual housing unit in or close to the city centre.
Reasons why you should invest in downtown real estate
There are many reasons why it is financially viable to purchase a condo close to the CBD. Here are several of these reasons:
Close to the Central Business District
Business people who work in the city centre, especially young and upcoming millennials often prefer to live close to their place of work. Therefore, you will easily be able to rent your condo out and realise a reasonable rate of return on your investment.
Attractive and stable investment
Investing in real estate close to the city centre, especially the financial district will broaden your portfolio and provide rental income over the long-term. Because the monthly income is stable, it reduces the volatile growth of your investment portfolio.
Low mortgage interest rates
The banks are lending money once again to home buyers; furthermore, the interest rate that the banks are charging is very low. Therefore, it makes sense to invest in real estate, as it will not cost you a lot to take out a mortgage, and you will receive a monthly income which should cover your monthly mortgage repayments.
Even though the housing market has climbed from its 2011 and 2012 low prices, condos and real estate properties are still reasonably priced. Furthermore, if you have the time to shop around, you will find that there are great deals available.
Therefore, it makes sound business sense to take advantage of the reasonably priced properties, low interest rates, stable monthly income, and the high rate of return that you will receive when purchasing a downtown condo as an investment property.