Buying a Condo Being an Investment Property46047

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 allow it to be grow. Your options seem endless, but you have decided real estate as the investment arena, and you're simply considering condos.

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

Advantages of buying a Peak Residence as an investment property

Maintenance needs to be done on all properties. Condos, especially condos that are 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 manages them. For a price, it's true, but you don't have to do them. Some of the problems in the unit can be taken care of from the complex maintenance crew. That is different from condo association to condo association. And they charge you for it, but you do not have to drop anything else and set you back your condo because the sink's leaking. Price

Some condos are very expensive. However, houses of comparable size inside the same neighborhood cost more. So, you can purchase an investment property inside a better neighborhood. Also, in most areas, there's no such thing as 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 change from condo association to condo association. But it's possible to invest in a condo located in a complex which includes swimming pool, 24-hour security, and the like things.

The disadvantages of purchasing a condo as an investment You must follow rules which are not yours. Each association has its own rules. And also the rules can transform. One of the rules that will change is whether or not tenants are permitted or otherwise not. If you possess a condo as well as the association votes you can forget tenants, once your lease is up, you either move in or sell. Your association might decide to go with the 'no more tenants' rule at a time when selling is not a great option.

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

Yes, you may earn sure you've something to say on decisions and get yourself elected around the board of directors; still, you are not 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 otherwise not the services (for instance, the water bill part of your assessment).