Buying a Condo As an Investment Property5941383

In case you are like most people, you would like your financial future to be better than your existing, or at least not worse. So, you place money aside and think about ways to ensure it is grow. The options seem endless, but you've selected real estate since your investment arena, and you're considering condos.

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

Benefits of buying a Peak Residence Showflat being an investment property

Maintenance needs to be done on all properties. Condos, especially condos which 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 protects them. For any 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 by the complex maintenance crew. That differs from condo association to condo association. Plus they charge you because of it, but you don't need to drop everything else and set you back your condo as the sink's leaking. Price

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

Amenities change from condo association to condo association. But it's possible to purchase a condo situated in a complex which includes swimming pool, 24-hour security, and such things.

The disadvantages of purchasing a condo as a possible investment You must follow rules that aren't yours. Each association features its own rules. And also the rules can change. One of the rules that may change is whether or not tenants are permitted or otherwise not. If you possess a condo and also the association votes no more tenants, when your lease comes to an end, you either move 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 choose to allow too many rentals. A lot of 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 ignore the difficult, as well as refinancing it.

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

You spend the same amount whether your unit is rented or vacant. Put simply, you get to give the same amount whether you use or otherwise not the services (for example, the water bill part of your assessment).