Buying a Condo As an Investment Property117897

In case you are like most people, you want your financial future to be better than your current, or at least not worse. So, you place money aside and consider ways to make it grow. The choices seem endless, but you've selected real estate as the investment arena, and you're simply considering condos.

Condos have several advantages over single family houses or 2-4 unit buildings. And lots of disadvantages. Within my conversations with individuals who've dedicated to condos, few were conscious of all of them. Here they are.

Features of buying a Peak Residence as an investment property

Maintenance has to be done on all properties. Condos, especially condos which can be professionally managed, offer relief for a time to condo investors.

You don't need to worry about roof, stairs, landscaping and such. The association takes care of them. For any price, the simple truth is, but you do not have to do them. A few of the problems within the unit can also be taken care of through the complex maintenance crew. That is different from condo association to condo association. And they charge you because of it, but you do not have to drop the rest and go to your condo since the sink's leaking. Price

Some condos are very expensive. However, houses of similar size within the same neighborhood cost more. So, you can purchase an investment property in a better neighborhood. Also, in most areas, there is no such thing like a 1-bedroom house, but you will find 1-bedroom, or even no bedroom, condo units. And, usually, you can find people prepared to rent them.

Amenities differ from condo association to condo association. But it is possible to purchase a condo situated in a complex which includes swimming pool, 24-hour security, etc things.

The disadvantages of purchasing a condo as a possible investment You must follow rules that aren't yours. Each association has its own rules. And the rules can change. One of the rules that may change is whether tenants are permitted or otherwise. If you possess a condo as well as the association votes no more tenants, when your lease expires, you either move around in or sell. Your association might opt to go with the 'no more tenants' rule at the same time when selling isn't a great option.

Or, worse, they opt to allow too many rentals. Too many tenants can make getting a mortgage difficult (FHA and others do not like condo associations where greater than 10% of the units are rented.) helping to make reselling neglect the difficult, not to mention refinancing it.

Yes, you could make sure you've got something to say of decisions and obtain yourself elected on the board of directors; still, you're not the only decision maker.

You spend the same amount whether your unit is rented or vacant. Quite simply, you get to spend the money for same amount regardless of whether you use or otherwise not the services (for instance, the water bill portion of your assessment).