Buying a Condo As an Investment Property8583292

If you're like most people, you would like your financial future being better than your present, or at least not worse. So, you determine money aside and think about ways to allow it to be grow. The choices seem endless, but you've selected real estate since 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. During my conversations with folks who've committed to condos, few were mindful of all of them. Here they are.

Benefits of buying a Peak Residence as a possible investment property

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

It's not necessary to worry about roof, stairs, landscaping etc. The association takes care of them. To get a price, it's correct, but you do not have to do them. A number of the problems within the unit can 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 anything else and set you back your condo as the sink's leaking. Price

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

Amenities differ from condo association to condo association. But it's possible to invest in a condo located in a complex which includes swimming pool, 24-hour security, and such things.

The disadvantages of buying a condo as an investment You need to follow rules that aren't yours. Each association features its own rules. And also the rules can change. One of the rules that may change is whether tenants are permitted or otherwise. If you own a condo and the association votes forget about tenants, when your lease comes to an end, you either relocate or sell. Your association might decide to go with the 'no more tenants' rule at any given time when selling is not a great option.

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

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