Buying a Condo As a possible Investment Property3945326

If you're like most people, you would like your financial future being better than your existing, or at least not worse. So, you set money aside and consider ways to ensure it is grow. The options seem endless, but you've selected real estate as your investment arena, and you're considering condos.

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

Advantages 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 relief for a time to condo investors.

You don't need to worry about roof, stairs, landscaping etc. The association takes care of them. For a price, it's true, but you don't need to do them. A number of the problems in the unit may also be taken care of from the complex maintenance crew. That is different from condo association to condo association. And they charge you for this, but you don't need to drop the rest and go to your condo because the sink's leaking. Price

Some condos are very expensive. However, houses of comparable size within the same neighborhood cost more. So, you should buy an investment property in a better neighborhood. Also, in most areas, there is no such thing as a 1-bedroom house, but there are 1-bedroom, or even no bedroom, condo units. And, usually, there are people ready to rent them.

Amenities change from condo association to condo association. However it is possible to invest in a condo positioned in a complex that has swimming pool, 24-hour security, and the like things.

The disadvantages of shopping for a condo as a possible investment You have to follow rules that are not yours. Each association features its own rules. And also the rules can alter. One of the rules that can change is if tenants are permitted or not. If you possess a condo and also the association votes forget about tenants, when your lease expires, you either move in or sell. Your association might decide to go with the 'no more tenants' rule at the same time when selling isn't a great option.

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

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