Buying a Condo Being an Investment Property7056375

If you're like most people, you need your financial future to be better than your present, or at least not worse. So, you determine money aside and consider ways to ensure it is grow. The options seem endless, but you've selected real estate as the investment arena, and you're considering condos.

Condos have a lot of advantages over single family houses or 2-4 unit buildings. And lots of disadvantages. In my conversations with individuals who've committed to condos, few were conscious of all of them. So here they are.

Advantages 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 takes care of them. For a price, the simple truth is, but you don't have to do them. A number of the problems within the unit may also be taken care of from the complex maintenance crew. That varies from condo association to condo association. And they charge you for this, but you don't need to drop the rest and set you back your condo since the sink's leaking. Price

Some condos are very expensive. However, houses of comparable size within the same neighborhood cost more. So, you can purchase an investment property inside a better neighborhood. Also, generally in most areas, there isn't any such thing like 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 purchase a condo situated in a complex that has swimming pool, 24-hour security, etc things.

The disadvantages of shopping for a condo being an investment You must follow rules that aren't yours. Each association features its own rules. And the rules can change. One of the rules that may change is whether tenants are permitted or not. If you own a condo as well as the association votes no more tenants, whenever 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 isn't a great option.

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

Yes, you can also make sure you have something to say on decisions and obtain yourself elected around the board of directors; still, you are not 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 regardless of whether you use or not the services (for instance, the water bill percentage of your assessment).