A forett condo investment and its pluses and minuses certainly must be known to those of you who intend to invest by buying this vertical residence. Moreover, many people choose condos as the type of occupancy to be purchased. Because the lifestyle is very practical and congestion that increasingly snaking, forcing people to live close to where they work or study. This condition has attracted many investors to rent out this vertical residential unit. However, it turns out that condo investment is not as easy as imagined. Some advantages and disadvantages need to be observed so as not to lose money.
The first advantages are the demand is high, especially in the CBD (central business district) area, expatriate residential areas, and campus environment. Second, the medium rent period (2-3 years). Condos are usually rented to bring tenants closer to the location of their activities, especially office locations. Thus, the average tenancy of about two or three years. Third, the risk of emptiness is low. That is, if the location is comfortable as a place to live, usually tenants will continue to occupy the forett condo. On the other hand, prospective tenants came to look for vacant units to rent. One of the factors in the low risk of condo vacancies is the unfamiliarity of our society with the culture of living in vertical housing. Fourth, high capital rates (7% -10%). With the risk of low unit vacancies, the income that comes from unit rentals automatically becomes smooth. This, of course, makes the Cap Rate high, above the Cap Rate of rental homes.
The owner must be observant in choosing the location of a prospective condominium. Later, many developers have built condos far from the city center or downtown. Areas like this are generally not suitable as an apartment location, and certainly not prospective as an investment. The owner must also be careful in choosing good building management. Many condos in the area are very prospective like the forett condo, but the tenants are lonely because of poor management of the building. Good building management always pays attention to the comfort factor of the occupants. They also pay attention to the improvement of public facilities, such as swimming pools, elevators, and others.