City units have held their value in Hamilton
My husband and I have a house that we love, but want to purchase a second property that will provide us with additional income. What do you recommend?
Looking for Investment Property
Dear Looking for Investment Property,
The key thing when looking for an investment property is making sure that the income provides a good return on investment.
In my experience, the properties that rent out the best are condominiums located within the City of Hamilton — our rental agents can’t keep them on their books very long.
They are in high demand and often come inclusive of high-quality, tasteful furnishings. They have all modern conveniences including full-size appliances, washers and dryers and basement storage units; some even come with such amenities as a roof terrace, pool or gym.
Always in demand by renters, they are also popular with buyers and most are available to PRCs and overseas buyers.
Currently, one-bedroom units in the city are listed for sale at between $525,000 and $675,000 and two bedrooms are asking $575,000 to $695,000.
Rents for a one-bedroom start at about $2,900 per month; the price goes up to $4,500 for a two-bedroom.
These numbers represent a return of approximately 6.6 per cent to 8 per cent on investment. Some units are being sold with a rental agreement and tenant already in place.
City units have held their value in the sales market much better than condominiums located outside of the city, and are likely to be a good investment for many years to come; because they tend to attract high-calibre young professionals or companies, rent is almost guaranteed.
Most people find it easier to use a rental agent as we often have a list of people wanting to rent these type of units on our books already.
We also know the real estate laws and have legally approved leases already made up at no additional cost to the landlord and are able to do credit checks on potential tenants.
As the years go on, you might also think about the fact that you might want to downsize.
City units are perfect for this — there is not necessarily the need for a car, although some do offer parking facilities. The units are on one level, with elevator access.
They are safe, as security is often monitored with CCTV throughout the complex. Bear in mind none of the city units allow pets, the condominium owners’ association does not allow Airbnb rentals, and rentals should be for six months or longer.
This is all put in place to maintain a stable environment and preserve the integrity of the building for the occupants. City complexes are convenient to almost everything within the city.
Most have a full-time management company, so there is no need to worry about things like painting and other maintenance items necessary to keep a building ticking over, although, of course, you are responsible for the upkeep of the interior of your unit.
This leaves you free to travel and spend time with family that you may not otherwise have been able to do.
•Heather Chilvers is among Coldwell Banker Bermuda Realty’s leading sales representatives. She has been working in real estate for nearly 30 years. If you have a question for Heather, please contact her at email@example.com or 332-1793. All questions will be treated in confidence. Read this article on Facebook: Ask Heather Real Estate
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