Buy a House or Condo? The Pros & Cons
If you are approaching your retirement, you probably have a plan to retire somewhere nice and who could blame you for wanting to spend your golden years in a tropical paradise? In this short article, we take a look at the pros & cons of investing in a stand-alone property and a condo in a foreign land and the implications of both.
Investing in a condo unit
Many retirees are reluctant to buy a house when they retire because they either live alone or with their partner and they do not want the upkeep that comes with a large property. A condo unit is much easier to keep clean and for many, it is enough living space for one or two people.
The pros of buying a condo unit
The benefits include the following:
Low maintenance
Many amenities onsite
24-hour security
Low cost
Take Gaia Residences in Gamuda Gardens, Malaysia, as an example, where you have access to all the amenities you need. This is a very attractive proposition to European retirees, especially when you look at the initiative called MM2H, which offers foreign retirees many concessions when they invest in real estate.
The cons
From a retiree’s perspective, there are few downsides to buying a condo unit; you do have to pay a maintenance fee to cover the upkeep of the development. Also, if you buy a unit in a development that has yet to be constructed, you run the risk of the developer going bankrupt.
Investing in a house/villa
Of course, if you buy a pool villa, you have the luxury of having a house and land with your own private pool, although this is never going to be a small investment. You also have to check that the law is on your side; Thailand, for example, does not allow foreigners to own land, which means a condo unit makes more sense. Click here to learn how tech is improving the construction sector.
The pros of buying a house
Obviously, you have a lot more living space when you buy a house, but that does mean more in terms of maintenance. In Malaysia, for example, you can buy property under the MM2H initiative, which is designed to attract foreigners to retire and gives you long-term visas and tax concessions on foreign income. A stand-alone property will appreciate in value, more than a condo unit would
The downsides of buying stand-alone real estate
Well, there is a lot of maintenance involved when you buy a house and for many retired people, the maintenance takes too much of their free time, plus they usually do not require as much living space when they retire.
To summarise, if you are interested in retiring in a foreign land, weigh up your options, which include Malaysia, Thailand and other Southeast Asian countries. Do some research and take a holiday to explore your chosen destination and then you can make an informed decision.
