Buying a Condo As a possible Investment Property9242884

If you're like most people, you want your financial future being better than your current, or at least not worse. So, you determine money aside and think of ways to ensure it is grow. The choices seem endless, but you've selected real estate since your investment arena, and you are considering condos.

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

Benefits of buying a Peak Residence as a possible 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 manages them. For a price, the simple truth is, but you don't need to do them. A few of the problems in the unit may also be taken care of through the complex maintenance crew. That varies from condo association to condo association. And so they charge you because of it, but you don't need to drop everything else and run to your condo because the sink's leaking. Price

Some condos are incredibly expensive. However, houses of similar size in the same neighborhood are more expensive. So, you should buy an investment property inside a better neighborhood. Also, in many areas, there isn't any such thing like a 1-bedroom house, but you will find 1-bedroom, or even no bedroom, condo units. And, usually, there are 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, etc things.

The disadvantages of buying a condo being an investment You have to follow rules that are not yours. Each association has its own rules. And the rules can alter. One of the rules that can change is whether or not tenants are permitted or otherwise. If you possess a condo and also the association votes you can forget tenants, whenever 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 any given time when selling isn't a great option.

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

Yes, you can also make sure you have something to say on decisions and obtain yourself elected about 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 give the same amount regardless of whether you use or otherwise the services (for instance, the water bill percentage of your assessment).