For many investors and young buyers, choosing the right type of property can be a critical decision. While plexes (duplexes, triplexes, etc.) offer the allure of multiple units and rental income, condos can present a smarter, more streamlined investment choice. Here are five compelling reasons why a condo might be the better option for you:
1. Lower Entry Costs
Investing in a condo often comes with a more affordable price tag than a plex. For young buyers or investors who want to get started without overextending their budgets, condos are typically more accessible. This lower cost of entry allows you to invest without needing large reserves of capital upfront, which can be a major advantage in competitive real estate markets.
2. Simplified Property Management
Owning a plex means managing multiple units, tenants, and the maintenance of a larger property. In contrast, condo ownership offers a more hands-off approach. With a condo, the syndicate typically manages common areas, major repairs, and maintenance, freeing you from the responsibilities that come with managing an entire building. This is especially appealing to busy professionals or investors who want to scale without dedicating time to property management.
3. Better Amenities
Condos often come with desirable amenities such as gyms, pools, lounges, and security features. These shared spaces can increase the appeal of your property to renters or buyers, especially younger professionals or families. Plexes, on the other hand, are more basic in terms of amenities and may require extra investment to add appeal or increase rental value.
4. Prime Location
Condos are often located in the heart of urban areas where young buyers and professionals want to live. Plexes, due to their larger size, are usually found in suburban or less central locations. If you’re targeting renters or buyers who prioritize convenience and proximity to work, restaurants, and entertainment, a condo in a prime location could be a better investment choice, attracting higher demand and consistent rental income.
5. Better Quality Tenants
Although plexes in good locations typically offer a good tenant quality, condos attract a different caliber of potential tenants. Whether it’s the amenities offered in the building or the fact that condos are usually newer and well-managed, condo investments tend to draw tenants with higher credit scores who need to be close to the city centre for work. These tenants typically offer more straightforward month-to-month management for owners, making the investment experience smoother overall.
Whether you’re an experienced investor or a young buyer entering the market, condos offer several benefits that can make them a superior choice over plexes. From lower entry costs to simplified management and prime locations, investing in a condo can provide both immediate and long-term advantages that align with modern living preferences.