Buying a Condo As an Investment Property2021720

If you're like most people, you need your financial future being better than your present, or at least not worse. So, you set money aside and consider ways to make it grow. The options seem endless, but you have 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 people who've invested in condos, few were aware of all of them. Here they are.

Features of buying a Peak Residence Showflat being an investment property

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

You don't have to worry about roof, stairs, landscaping and the like. The association manages them. For a price, it's true, but you don't have to do them. Some of the problems within the unit can be taken care of by the complex maintenance crew. That varies from condo association to condo association. And so they charge you for it, but you don't need to drop anything else and go to your condo since the sink's leaking. Price

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

The disadvantages of buying a condo being an investment You must follow rules that aren't yours. Each association features its own rules. And the rules can alter. One of the rules that will change is whether tenants are permitted or not. If you possess a condo and the association votes forget about tenants, whenever your lease expires, you either move in or sell. Your association might decide to go with the 'no more tenants' rule at a time when selling isn't a great option.

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

Yes, you may earn sure you've something to say about 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. Put simply, you get to give the same amount regardless of whether you use or not the services (for instance, the water bill part of your assessment).