Buying a Condo As an Investment Property2840249

If you are like most people, you would like your financial future to be better than your current, or at least not worse. So, you set money aside and consider ways to make it grow. The options seem endless, but you have selected real estate as your investment arena, and you're considering condos.

Condos have several advantages over single family houses or 2-4 unit buildings. And lots of disadvantages. During my conversations with people who've invested in condos, few were conscious of all of them. So now they are.

Advantages of buying a Peak Residence as a possible investment property

Maintenance must 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 the like. The association protects them. For a price, it's correct, but you don't need to do them. Some of the problems inside the unit may also be taken care of through the complex maintenance crew. That differs from condo association to condo association. And they charge you for this, but you don't need to drop the rest and run to your condo since the sink's leaking. Price

Some condos are very expensive. However, houses of comparable size inside the same neighborhood be more expensive. 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 ready to rent them.

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

The disadvantages of buying a condo as an investment You must follow rules that are not yours. Each association features its own rules. And the rules can change. One of the rules that may change is whether tenants are permitted or otherwise not. If you own a condo as well as the association votes no more tenants, when your lease is up, 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 is not a great option.

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

Yes, you may earn sure you've got something to say on decisions and obtain 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. Put simply, you get to spend the money for same amount whether you use or not the services (as an example, the water bill part of your assessment).