Buying a Condo As an Investment Property1474626

In case you are like most people, you need your financial future to be better than your current, or at least not worse. So, you place money aside and think about ways to ensure it is grow. Your options seem endless, but you have decided 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 many disadvantages. During my conversations with individuals who've invested in condos, few were mindful of all of them. So here they are.

Features of buying a Peak Residence Showflat being an investment property

Maintenance must be done on all properties. Condos, especially condos which can be 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. To get a price, it's true, but you don't have to do them. A number of the problems within the unit can be taken care of from the complex maintenance crew. That differs from condo association to condo association. And so they charge you because of it, but you don't have to drop anything else and run to your condo since the sink's leaking. Price

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

The disadvantages of buying a condo being an investment You must follow rules that aren't yours. Each association features its own rules. As well as the rules can alter. One of the rules that may change is if tenants are permitted or not. If you own a condo and the association votes you can forget tenants, whenever your lease expires, 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 opt to allow way too many rentals. A lot of tenants can make getting a mortgage difficult (FHA among others do not like condo associations where more than 10% of the units are rented.) helping to make reselling ignore the difficult, not forgetting refinancing it.

Yes, you could make sure you've something to say about decisions and obtain yourself elected on 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. Put simply, you get to spend the money for same amount regardless of whether you use or otherwise the services (as an example, the water bill percentage of your assessment).