Buying a Condo Being an Investment Property2219186

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 think of ways to make it grow. Your options seem endless, but you have decided real estate as the investment arena, and you're simply considering condos.

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

Advantages of buying a Peak Residence as an investment property

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

It's not necessary to worry about roof, stairs, landscaping and the like. The association takes care of them. For a price, it's correct, but you don't have to do them. Some of the problems within the unit can also be taken care of through the complex maintenance crew. That is different from condo association to condo association. Plus they charge you for this, but you do not have to drop the rest 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 cost more. So, you can buy an investment property inside a better neighborhood. Also, in most areas, there isn't any such thing like a 1-bedroom house, but there are 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. But it's possible to purchase a condo positioned in a complex that has swimming pool, 24-hour security, and the like things.

The disadvantages of purchasing a condo as an investment You need to follow rules that are not yours. Each association features its own rules. As well as the rules can change. One of the rules that will change is whether or not tenants are permitted or otherwise. If you possess a condo as well as the association votes you can forget tenants, when your lease comes to an end, you either move 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. Too many tenants can make getting a mortgage difficult (FHA and others do not like condo associations where more than 10% of the units are rented.) helping to make reselling your investment difficult, not to mention refinancing it.

Yes, you may earn sure you have something to say about decisions and obtain yourself elected around the board of directors; still, you are not the only decision maker.

You have to pay the same amount whether your unit is rented or vacant. Put 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).