Buying a Condo As a possible Investment Property1716182

If you are like most people, you need your financial future being better than your present, or at least not worse. So, you determine money aside and think about ways to make it grow. Your options seem endless, but you've selected real estate as the investment arena, and you're simply considering condos.

Condos have several advantages over single family houses or 2-4 unit buildings. And several disadvantages. During my conversations with folks who've dedicated to condos, few were aware of all of them. So here they are.

Benefits of buying a Peak Residence as a possible 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 need to worry about roof, stairs, landscaping and the like. The association manages them. To get a price, it's true, but you don't need to do them. A number of the problems in the unit can be taken care of from the complex maintenance crew. That differs from condo association to condo association. And they charge you for it, but you don't have to drop the rest and go to your condo since the sink's leaking. Price

Some condos are very expensive. However, houses of comparable size within the same neighborhood be more expensive. So, you can purchase 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 prepared to rent them.

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

The disadvantages of purchasing a condo being an investment You have to follow rules that are not yours. Each association possesses its own rules. And the rules can alter. One of the rules that can change is if tenants are permitted or not. If you possess a condo and the association votes no more tenants, once your lease comes to an end, you either move around in 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 choose to allow a lot of rentals. Too many tenants can make getting a mortgage difficult (FHA among others do not like condo associations where greater than 10% of the units are rented.) making reselling ignore the difficult, as well as refinancing it.

Yes, you could make sure you have something to say of decisions and acquire yourself elected on 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 regardless of whether you use or otherwise not the services (for example, the water bill portion of your assessment).