Those considering investing in real estate in today’s market are more than likely tired of their meager returns from their existing portfolio. And depending  upon the area, building a new home from the ground up can make more financial sense compared to buying and rehabilitating an existing home, new condo investingespecially in areas with low unemployment and solid job growth.

But for those just starting out, building and financing a $250,000 single family home might be a stretch. Instead, those same investors might look for something a bit smaller. Just to test the waters so to speak. Why not look at a condominium project?

New condos are typically built in phases and are often pre-sold to buyers before construction has been completed. In fact, when obtaining permanent financing for these units, the lender will want to make sure there is a strong presale among other requirements. Once the phase has been completed and all the common areas are finished, the lender can place the loan.

A condo is an ideal property for an investor. There is little need for maintenance because the individual condo owners all share the ownership of all the common areas including heating and air conditioning. A leaky roof is fixed by the association, funded by homeowners’ fees. You may also find an advantage having a furnished condo where someone can move in right away. Short term leases may also be an option for you to appeal to business people who travel on extended stays and hotels are too expensive. Shorter term rentals can also mean higher monthly rents as your primary competition for the tenant might be a hotel.

You need to review specific rules for renting out your condo by reviewing the condominium rules retrieved from the builder or homeowner’s association as there may be some restrictions. Yet if you’re looking for a long term investment, don’t forget to explore the condominium market.