Buying a Condo Being an Investment Property5783952

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 set money aside and think about ways to allow it to be grow. The choices seem endless, but you have selected real estate as your investment arena, and you are considering condos.

Condos have a lot of advantages over single family houses or 2-4 unit buildings. And many disadvantages. In my conversations with people who've invested in condos, few were mindful of all of them. Here they are.

Features of buying a Peak Residence Showflat as a possible investment property

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

It's not necessary to worry about roof, stairs, landscaping and such. The association takes care of them. For any price, it's correct, but you don't need to do them. A few of the problems in the unit can be taken care of by the complex maintenance crew. That differs from condo association to condo association. And so they charge you because of it, but you don't need to drop the rest and run to your condo since the sink's leaking. Price

Some condos are extremely expensive. However, houses of comparable size in the same neighborhood are more expensive. So, you can purchase an investment property inside a better neighborhood. Also, in many areas, there isn't any such thing like a 1-bedroom house, but there are 1-bedroom, or even no bedroom, condo units. And, usually, you can find people prepared to rent them.

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

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

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

Yes, you could make sure you have something to say about decisions and get yourself elected around the board of directors; still, you aren't 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 (for instance, the water bill percentage of your assessment).