Buying a Condo Being an Investment Property8529166

If you're like most people, you would like your financial future to become better than your current, or at least not worse. So, you determine money aside and think about ways to allow it to be grow. The choices seem endless, but you have 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 several disadvantages. During my conversations with people who've dedicated to condos, few were conscious of all of them. Here they are.

Advantages of buying a Peak Residence Showflat being an investment property

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

You don't have to worry about roof, stairs, landscaping etc. The association takes care of them. For a price, it's correct, but you don't have to do them. A number of the problems within the unit can 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 don't need to drop everything else and set you back your condo since the sink's leaking. Price

Some condos are incredibly expensive. However, houses of similar size in the same neighborhood cost more. So, you can buy an investment property in a better neighborhood. Also, in most areas, there's no such thing being a 1-bedroom house, but you can 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 buy condo located in a complex which includes swimming pool, 24-hour security, and the like things.

The disadvantages of shopping for a condo as an investment You need to follow rules which are not yours. Each association has its own rules. As well as the rules can change. One of the rules that may change is whether or not tenants are permitted or otherwise. If you possess a condo as well as the association votes you can forget tenants, when your lease is up, you either move in or sell. Your association might opt to go with the 'no more tenants' rule at any given time when selling is not a great option.

Or, worse, they choose to allow way too many rentals. Way too many tenants will make getting a mortgage difficult (FHA among others do not like condo associations where a lot more than 10% of the units are rented.) making reselling your investment difficult, not forgetting 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 are not the only decision maker.

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