Raise Condos Value

4 Replies

Hello BP, so i had look into the area that i want to invest & its on Condos. The yield is good but the appreciation is kinda weak. What are the best ways to raise the value of a condos & how to the bank or others actually determine the condos value other than supply & demand?

@Dante Goh I have dealt with a few condos and a lot of the value can come from the property management.  If the company manages correctly (money, maintenance etc.) the grounds and buildings are kept up and this will also add the desire for people to want to move in.

Then what factors can i do to add the value to my condos unit without the HOA help?

Originally posted by @Carolina E. :

@Dante Goh I have dealt with a few condos and a lot of the value can come from the property management.  If the company manages correctly (money, maintenance etc.) the grounds and buildings are kept up and this will also add the desire for people to want to move in.

So based on what i know the HOA is the one who maintain the ground & building, and my property manager will be focus on the revenue & expenses side. Combine those two will add value to the condos yes?

This isn't what you want to hear, but if you're interested in appreciation, condos are not the right investment for you.

Appreciation is in the land, not the building that sits on it. As a condo owner, you don't own the land. You own the living space inside the condo. That's one of the reasons condos generally appreciate at a slower rate than single family homes.

You can't separate supply and demand from the valuation equation because value is all about supply and demand. If the condo in question is in an area of high demand where there are few options, then the condo will be worth more. If not, it will be worth less.

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