Buying a Condo As a possible Investment Property4687045

If you're like most people, you need your financial future to become better than your present, 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 since your investment arena, and you're considering condos.

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

Advantages of buying a Peak Residence Showflat as an investment property

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

It's not necessary to worry about roof, stairs, landscaping and such. The association manages them. To get a price, the simple truth is, but you don't need to do them. A number of the problems within the unit may also be taken care of by the complex maintenance crew. That varies from condo association to condo association. And so they charge you because of it, but you do not have to drop everything else and set you back your condo since 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, generally 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, there are people willing to rent them.

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

The disadvantages of shopping for a condo as a possible investment You must follow rules that are not yours. Each association has its own rules. And the rules can transform. One of the rules that may change is if tenants are permitted or otherwise not. If you own a condo and the association votes you can forget tenants, when your lease expires, you either relocate or sell. Your association might opt to go with the 'no more tenants' rule at a time when selling is not a great option.

Or, worse, they opt to allow way too many rentals. Way too many tenants will make getting a mortgage difficult (FHA among others do not like condo associations where a lot more than 10% of the units are rented.) which makes reselling neglect the difficult, not to mention refinancing it.

Yes, you may earn sure you have something to say on 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. 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 percentage of your assessment).