Condo Investing: Evaluating the Numbers
October 15, 2019
Evaluate the carrying costs
Another important factor that every investor should consider in their business model is the carrying cost of their investment.
The carrying cost is the total cost of holding or carrying inventory. A condo owner’s carrying costs may include the mortgage, condo fees (such as maintenance), property taxes and insurance. One of the benefits to pre-construction condo investment is that owners can rent out their completed units to help pay down the mortgage which lowers the carrying costs.
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