Real estate is one of the most lucrative investments, allowing you to build wealth by creating passive income. Investing in real estate does not always mean you become a landlord with maintenance responsibilities. There are several ways you can reap the benefits of owning property without the headache. One way is by owning condominiums.
Condos are great investments because you avoid the upkeep of a traditional single-family home and, in most cases, pay less money. But the most important thing to consider before buying an investment property is the location. Choosing a good area will help you get the best return on your investment. A prime location for condos is areas near college campuses. Here are five reasons to invest in condos near campuses that ensure you get the most cash flow from your property.
Constant Demand
Investing in property in a booming college town means there will be a constant demand for housing. Some college students choose to live off-campus and desire housing with little upkeep, like condos and apartments. But aside from college students, college campuses also provide jobs for professors, administrators, and other staff. These staff often relocate from other cities to work at a particular school and need immediate housing.
They’re usually not just looking for a place to rent. They are, specifically, looking for a place to rent with the shortest commute to campus. The constant demand this creates may mean steady turnover, but the rental security makes it worth your while.
Also, college students will often choose to stay in the area after graduating and entering the workforce, adding to the demand for housing. You will have the opportunity to rent your condo(s) to young professionals who want to remain in the area but are not ready to purchase property themselves.
Strong Hedge Against Inflation
Real estate is also a great investment because it’s one of the best hedges against inflation. The inflation rate was around nine percent in June of 2022. It is still a concern in many households, especially those working on a retirement plan. Real estate, in general, will protect your investment from inflation, but it gets better.
Income-generating real estate will protect your initial investment and make you more money. Investing in high-demand real estate like condos near college campuses will ensure you have no trouble keeping renters in the property, so you generate a steady income stream and protect your money.
Steady Appreciation
Appreciation is the main reason real estate is such a good hedge against inflation. Ironically, inflation will drive an increased rate of appreciation in your property. But as the investor, you reap the benefit of appreciation instead of taking the hit from inflation.
Most real estate will appreciate over time. But, in some cases, condos may have a slower appreciation than single-family homes. You can offset this by choosing preconstruction condos near campuses. Condos near college campuses will appreciate better than others because of high demand.
Economic Growth Potential
A thriving college town will have plenty of economic growth. Young professionals, business owners, and investors contribute to the growth potential in the area. A college-educated population will stimulate the economy as they are more likely to be gainfully employed.
The unemployment rate for college graduates is lower than for high school graduates. This is a good thing when you have invested in property near a college campus. One of the main factors of economic growth is employment rates. A population with steady employment will likely be able to afford rent and pay on time. Colleges and universities are often some of the largest employers in the area. Investing in property near these campuses is an excellent choice.
Leverage Amenities
Some condominiums offer their own amenities within the complex, but when you invest in condos near campuses, there is usually a variety of added attractions for the renter. When the renters are attracted to the property, the investor benefits from higher income opportunities.
For example, students and young professionals often choose to have roommates to save money on housing. When you have more than one person renting your condo, you can charge more for rent. But to attract these groups to your property, it needs to be in a location with plenty of amenities.
College campuses are usually in areas with adequate transit systems and walkable downtowns. They’re also near popular hangout spots like bookstores and coffee shops. These are great amenities that attract multiple renters. The great thing is you don’t have to be the one to provide these amenities when you invest in condos near these campuses.
Final Thoughts
Real estate, in general, is a solid investment for several reasons. There are ways to invest in real estate without the headache of being a landlord. One way is to invest in condominiums. If you want to get the largest return on your investment, you should pay attention to the location.
Condos near college campuses are a great investment because of the high demand, inflation protection, and appreciation rates. They’re also in areas with greater economic growth potential and amenities. You can’t go wrong investing in real estate in prime locations like these.
Article by: Costas Kivelos
Costas Kivelos has over a decade of experience in real estate investments. He is the founder of First Access Condos – the source for the top pre-construction condos in the Greater Toronto Area. He has been recognized as a top platinum VIP agent. Costas Kivelos has been seen on his television series “Everyday Investor”.