Buying a Condo As a possible Investment Property7232977

If you're like most people, you need your financial future to be better than your present, or at least not worse. So, you place money aside and consider ways to ensure it is grow. The options seem endless, but you've selected real estate as the investment arena, and you're 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 invested in condos, few were mindful of all of them. Here they are.

Features of buying a Peak Residence being an investment property

Maintenance must be done on all properties. Condos, especially condos that are professionally managed, offer relief for a time to condo investors.

It's not necessary to worry about roof, stairs, landscaping and such. The association takes care of them. For a price, it's correct, but you do not have to do them. A few of the problems within the unit can also be taken care of from the complex maintenance crew. That varies from condo association to condo association. And they charge you for it, but you do not have to drop everything else and run to your condo because the sink's leaking. Price

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

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

The disadvantages of purchasing a condo as a possible investment You must follow rules which are not yours. Each association has its own rules. As well as the rules can transform. One of the rules that will change is if tenants are permitted or otherwise. If you possess a condo and also the association votes you can forget tenants, whenever your lease comes to an end, you either move around in or sell. Your association might opt with the 'no more tenants' rule at the same time when selling is not an great option.

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

Yes, you could make sure you have something to say of decisions and get yourself elected about the board of directors; still, you aren't the only decision maker.

You make payment for the same amount whether your unit is rented or vacant. In other words, you get to spend the money for same amount whether you use or otherwise the services (as an example, the water bill part of your assessment).