Buying a Condo As an Investment Property4008765

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

Condos have several advantages over single family houses or 2-4 unit buildings. And many disadvantages. Within my conversations with people who've dedicated to condos, few were aware of all of them. So now they are.

Benefits of buying a Peak Residence Showflat as an investment property

Maintenance must be done on all properties. Condos, especially condos that are professionally managed, offer some relief to condo investors.

It's not necessary to worry about roof, stairs, landscaping etc. The association takes care of them. For a price, the simple truth is, but you do not have to do them. A few of the problems inside the unit may also be taken care of from the complex maintenance crew. That is different from condo association to condo association. Plus they charge you because of 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 incredibly expensive. However, houses of comparable size inside the same neighborhood cost more. So, you can buy an investment property in the 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, you can find people willing to rent them.

Amenities change from condo association to condo association. But it is possible to invest in a condo positioned in a complex that has swimming pool, 24-hour security, and the like things.

The disadvantages of buying a condo being an investment You need to follow rules that aren't yours. Each association possesses its own rules. And also the rules can change. One of the rules that can change is whether or not tenants are permitted or otherwise. If you own a condo and also the association votes forget about tenants, once your lease comes to an end, you either relocate or sell. Your association might opt with the 'no more tenants' rule at the same time when selling is not a great option.

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

Yes, you could make sure you have something to say of decisions and acquire yourself elected around the board of directors; still, you're not the only decision maker.

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