Investing in Birmingham Condos

Buying condos and renting them out is a popular business model across the country. The same can be said of residential real estate properties in Birmingham. With more and more people flocking to the city as it sheds its image of brutal civil rights struggles and industrial collapse, investors are eyeing condos as a great way to cash in on the influx of new residents.

The best thing about buying and renting out condos is that it isn’t a one-dimensional investment. Unlike other ventures, where the investment is made on a concept designed to yield returns, a condominium unit buys you an asset that in itself yields a return. In simpler terms, you can buy a condo and try to rent it out, but if that doesn’t work, you can still sell the condo at fair market value and recover most, if not all, of your losses through appreciation.

With the rosy economic climate in Birmingham, though, it’s likely that any vacancies will go fast, and investors can expect returns on their investment sooner rather than later. The only downside: available units are currently in short supply—just 52 remained by the end of May 2014.

There is good news on the horizon, however. With the supply shortage in condo units, the construction industry is under pressure to build more. Not only will this fill the shortage, but likely create more jobs that will draw even more newcomers to the city.