Buying a secondhand condo for investment.

Investing in a condo for rental income is a dream for many, as it offers a path to passive income for life without requiring significant effort. However, when it comes to condo investment, many focus on new condos, believing that "new" is always better than "old." But in reality, even second-hand condos are worthwhile investments for rental income. The advantages of second-hand condos over new ones include:

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1. Second-hand condos are cheaper and offer price negotiation potential.

Currently, new condos, even in less central locations, often have high starting prices, causing hesitation. Acquiring a prime location is even more difficult. Second-hand condos, however, are significantly cheaper. This is often due to their age, less modern design, or owners needing to sell urgently, offering greater bargaining opportunities. Therefore, if your primary objective is rental income and not resale, considering a second-hand condo might be more worthwhile, as your target audience is primarily renters, not buyers. Design or newness isn't the most important thing for them.

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2. Secondhand condos offer better location options.

As we know, new condo projects are popping up everywhere these days, but the land available for construction is limited. Therefore, we often see new condos with cutting-edge designs located more in suburban areas than in the city center. This is because prime locations are already occupied by secondhand condos, or rather, former firsthand condos. For this reason, if your target tenant is city dwellers, finding an affordable new condo in a city location is difficult. However, with secondhand condos, there's a wide variety to choose from, in every location and at every level of luxury. Therefore, if you prioritize location, choosing a secondhand condo offers a better chance of success.

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3. You can see the actual condition of the room and surrounding environment.

Not all new condo projects are ready to move into immediately. Many are pre-sale projects, meaning you haven't seen the actual unit, and you can't start generating rental income right away. The inability to see the actual condition of the condo and the overall living environment can lead to inaccurate rental estimates. This is unlike secondhand condos, which are ready to move into immediately and generate income right away. Furthermore, secondhand condos may have already undergone more complete renovations and additions than new condos. Therefore, you can assess the actual environment firsthand and avoid later regrets if it doesn't meet your expectations.

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Many people overlook secondhand condos, but they actually have attractive advantages for investment and rental purposes. However, careful consideration and selection are crucial. The more patient and meticulous you are in your selection, the greater the chance of acquiring a good property at a reasonable price to generate passive income.

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Thank you for the valuable information from REIC.