03
Mar

Apartments in the condo system – a way to earn money?

Until recently, the concept of the condo system was not known in Poland. Now, however, condo-apartments are growing on the market like mushrooms after rain. They are a very attractive way to multiply the existing capital with relatively low self-involvement.

A condo system is an interesting way to multiply your finances. It owes its popularity partly to the fact that the investor does not have to be a person perfectly oriented in the market situation or educated directionally. In short – the owner of a condo-investment can be the average citizen, if the collected funds will allow him for this type of investment. It should be noted here that the own contribution in the case of a condo-investment is high for many people – in relation, for example, to the possibility of investing a certain amount on a bank deposit. In addition, the condo-investment is not only a profit, but also buying a permanent place to stay on vacation.

So what is the investor’s task? He must maintain the condo-apartment in good technical and visual condition. If he does not have enough time, he can hire a company that will manage the apartment on his behalf. It can also order a rental calendar management, which is certainly quite time-consuming. The real investor’s time commitment is therefore dependent both on his wallet’s resources (additional services are a higher cost), as well as determining how much he wants to be involved in this investment.

A person who decides to invest in a condo-apartment has the right to use it through the number of days per year specified in the contract. Often, the contract also includes information on the months the investor can use the condo-apartment (eg only during the off-season). For the remaining days of the year, the investor allocates his apartment for rent and derives financial profits from this.

Of course, apart from the good profit that is promised by the owners of this type of real estate, there is also a considerable risk. The apartment or hotel may be poorly managed, which will translate into lower rental profits. The risk group also includes the bankruptcy of an apartment or hotel. No one can really give guarantees that the money invested will be returned and additionally the investment will bring profits. It can also happen that rental prices on the market will drop dramatically and the investor will receive a lower percentage of salary than previously assumed. Any calculations, etc. are in fact estimates.

It may turn out that the building is located in an unattractive neighborhood from the point of view of customers, or that the standard of the rooms offered is unsuitable. There are many factors affecting the success of renting.

In order for the investment in the condo-apartment to be as safe as possible, it is necessary to pay attention to a number of factors. The least risky will be apartment buildings and hotels located in holiday resorts, where the intensity of tourists, and therefore potential tenants, is high. The condo system is also best suited for large cities, where high-level employees are often hired.

It is also better to put money in large investments, which the owner has the right amount of cash to undertake extensive marketing activities. It is also good to check the developer’s history. The more condo-properties you have, the easier it is to see at what level they are currently operating and calculate what the risk level is. This story will also tell us whether the developer has extensive experience and whether he knows where to build lucrative real estate.

Condo-map of Poland indicates that a lot of investments of this type arise in the mountains and in seaside towns. Certainly, the cities that attract the largest number of tourists annually will be the safest for this type of investment – so it is worth targeting just in there.

booked.net