Buying a Condo As an Investment Property9917290

If you are like most people, you want your financial future to be better than your current, or at least not worse. So, you set money aside and think of ways to make it grow. The choices seem endless, but you've 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 dedicated to condos, few were conscious of all of them. So here they are.

Advantages of buying a Peak Residence being an investment property

Maintenance must be done on all properties. Condos, especially condos which are professionally managed, offer some respite to condo investors.

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

Some condos are very expensive. However, houses of similar size inside the same neighborhood are more expensive. So, you should buy an investment property inside a better neighborhood. Also, in most areas, there isn't any such thing as a 1-bedroom house, but you will find 1-bedroom, or even no bedroom, condo units. And, usually, you will find people willing to rent them.

Amenities vary from condo association to condo association. But it's possible to buy condo positioned in a complex which includes swimming pool, 24-hour security, etc things.

The disadvantages of purchasing a condo as a possible investment You need to follow rules that are not yours. Each association possesses its own rules. And the rules can alter. One of the rules that may change is whether or not tenants are permitted or not. If you own a condo and the association votes no more tenants, when your lease comes to an end, you either move in or sell. Your association might opt with the 'no more tenants' rule at any given time when selling isn't a great option.

Or, worse, they decide to allow a lot of rentals. Too many tenants can make getting a mortgage difficult (FHA and others do not like condo associations where a lot more than 10% of the units are rented.) which makes reselling your investment difficult, as well as refinancing it.

Yes, you could make sure you've something to say about decisions and acquire 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 the services (as an example, the water bill portion of your assessment).