Buying a Condo As a possible Investment Property6649290

In case you are like most people, you would like your financial future being better than your present, or at least not worse. So, you determine money aside and consider ways to make it grow. The choices seem endless, but you have selected real estate since your investment arena, and you're considering condos.

Condos have several advantages over single family houses or 2-4 unit buildings. And several disadvantages. Within my conversations with people who've invested in condos, few were conscious of all of them. So here they are.

Advantages of buying a Peak Residence as an investment property

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

You don't have 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. A few of the problems inside the unit may also be taken care of by the complex maintenance crew. That is different from condo association to condo association. And they charge you for this, but you don't have to drop the rest and set you back your condo because the sink's leaking. Price

Some condos are extremely expensive. However, houses of comparable size inside the same neighborhood be more expensive. So, you can purchase an investment property in a better neighborhood. Also, generally 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, there are people prepared to rent them.

Amenities change from condo association to condo association. However it is possible to buy condo located in a complex that has swimming pool, 24-hour security, etc things.

The disadvantages of buying a condo being an investment You need to follow rules that are not yours. Each association possesses its own rules. As well as the rules can transform. One of the rules that may change is whether tenants are permitted or otherwise. If you own a condo as well as the association votes no more tenants, whenever your lease comes to an end, you either move in or sell. Your association might opt with the 'no more tenants' rule at a time when selling is not an great option.

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

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

You make payment for the same amount whether your unit is rented or vacant. In other words, you get to give the same amount whether you use or otherwise not the services (for instance, the water bill percentage of your assessment).