Buying a Condo Being an Investment Property2308028

If you're like most people, you would like your financial future to be better than your existing, or at least not worse. So, you determine money aside and think of ways to make it grow. The choices seem endless, but you have decided real estate as your investment arena, and you're simply considering condos.

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

Benefits of buying a Peak Residence as an investment property

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

You don't have to worry about roof, stairs, landscaping and such. The association manages them. For a price, the simple truth is, but you do not have to do them. Some of the problems inside the unit may also be taken care of through 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 everything else and set you back your condo as the sink's leaking. Price

Some condos are extremely expensive. However, houses of comparable size inside the same neighborhood be more expensive. So, you can purchase an investment property in a 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, you can find people willing to rent them.

Amenities change from condo association to condo association. However it is possible to buy condo situated in a complex that has swimming pool, 24-hour security, etc things.

The disadvantages of buying a condo being an investment You have to follow rules that are not yours. Each association features its own rules. As well as the rules can alter. One of the rules that will change is if tenants are permitted or otherwise. If you own a condo and the association votes you can forget tenants, when your lease is up, you either move in or sell. Your association might opt to go with the 'no more tenants' rule at a time when selling is not an great option.

Or, worse, they choose to allow a lot of rentals. Way too many tenants can make getting a mortgage difficult (FHA yet others do not like condo associations where a lot more than 10% of the units are rented.) which makes reselling your investment difficult, not forgetting refinancing it.

Yes, you can also make sure you've got something to say of decisions and acquire yourself elected on 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 spend the money for same amount whether you use or otherwise not the services (for instance, the water bill part of your assessment).