Buying a Condo As a possible Investment Property5430028

In case you are like most people, you want your financial future to become better than your current, or at least not worse. So, you place money aside and think about ways to ensure it is grow. The choices seem endless, but you have selected real estate as the 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 people who've invested in condos, few were conscious of all of them. So here they are.

Features of buying a Peak Residence as an investment property

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

You don't have to worry about roof, stairs, landscaping and such. The association manages them. For a price, it's true, but you don't need to do them. Some of the problems inside the unit can be taken care of by the complex maintenance crew. That varies from condo association to condo association. Plus they charge you for this, but you don't need 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 in the same neighborhood be more expensive. So, you can purchase an investment property in the better neighborhood. Also, in many 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, there are people willing to rent them.

Amenities change from condo association to condo association. However it is possible to buy condo located in a complex which includes swimming pool, 24-hour security, and such things.

The disadvantages of purchasing a condo being an investment You have to follow rules that aren't yours. Each association features its own rules. And the rules can change. One of the rules that will change is whether tenants are permitted or not. If you possess a condo as well as the association votes no more tenants, once your lease is up, you either move around in or sell. Your association might opt with the 'no more tenants' rule at any given time when selling is not a great option.

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

Yes, you may earn sure you've something to say of decisions and get yourself elected about 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. Quite simply, you get to pay the same amount whether you use or not the services (as an example, the water bill percentage of your assessment).