How to Measure the Best Benefits in Investing on a Colombo Apartment

Investing in real estate is an excellent way to grow your capital. If done properly and with an understanding of the real estate market, this can earn you financial freedom. One of the good things about investing in an apartment is that it has flexibility and a variety of options. You can earn a regular, consistent flow of income by creating a portfolio of rental apartments. This gives you a monthly income with a slow but certain increase in the value of the properties.

1. Investing in a Colombo apartment

Colombo is rapidly becoming a cosmopolitan city. There's a building surge sprouting apartment complexes all over the city. Luxury apartments in Colombo make a great investment. However, it's not the only kind of apartments available in the capital city of Sri Lanka. Property developers like John Keells Properties like to give investors the chance to choose from a variety of options. If this is your first investment, you don't have to choose a luxury apartment; it could be a semi-luxury apartment where the capital requirement is low. You also get different types of apartments, including studio, convertible studio, micro-apartment, loft, duplex, triplex, and walk-up. You should do plenty of research before getting into the investment part.

2. Affordability

Investing in apartments gives first-time investors entry into the real estate market. Compared to other investment options, it doesn't require a massive amount of money, meaning it doesn't involve as many risks. Also, if you have enough money, you can invest in different types of apartments and create a diverse portfolio.

3. Mass buyer appeal

Apartments are appealing to first time home buyers. When you want to sell the apartment, your market reach will be higher, which then creates demand, and in turn, it increases the apartment value.

4. Building management

Another benefit of owning an apartment is that the maintenance fee of the building is divided among the investors. However, the more facilities the building has, the higher the cost, but it could also work to your advantage by giving you the chance to increase the rent.

5. Tips for first-time investors

When choosing an apartment, make sure it offers something that regular houses don't. It could be lovely scenery, proximity to amenities like bus terminals and train stations. You should think carefully when choosing the location. An apartment in the outer reach of an urban area isn't appealing to people; buyers prefer urban and inner-city locations. Understanding the fee structure is important. The unit price isn't the only cost involved. Keep in mind that after buying the property, the maintenance of the unit becomes your responsibility. This is something that will continue to drain your finances, so when creating your investment budget, include all the fees involved. When choosing the level, don't go higher than the 5th level. While young people will love the view from up the balcony, the older generation may not like the idea of living on a higher level of the building. As older people are likely your demographic – given that they are more likely to have the money to buy or rent the apartment – don't go higher than the 5th level.

6. Reduced debts by rental income

If you take a loan to buy the apartment, you can use the rental income to pay off the loan. More often than not, especially if it's a luxury apartment, your monthly rental income will be enough to settle your loan instalment and increase your equity. Investing in an apartment using a loan is a smart thing to do, even if you are cashed up.