Buying a Condo As a possible Investment Property5127150

In case you are like most people, you would like your financial future to become better than your present, or at least not worse. So, you set money aside and consider ways to ensure it is grow. Your options seem endless, but you have selected real estate as your investment arena, and you're simply considering condos.

Condos have a lot of advantages over single family houses or 2-4 unit buildings. And many disadvantages. Within my conversations with folks who've invested in condos, few were conscious of all of them. So here they are.

Advantages of buying a Peak Residence as a possible investment property

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

It's not necessary to worry about roof, stairs, landscaping and the like. The association protects them. For any price, it's correct, but you don't have to do them. Some of the problems inside 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 for it, but you don't have to drop anything else and run to your condo because the sink's leaking. Price

Some condos are incredibly expensive. However, houses of similar size inside the same neighborhood are more expensive. So, you should buy an investment property inside a better neighborhood. Also, generally in most areas, there is no such thing being a 1-bedroom house, but there are 1-bedroom, or even no bedroom, condo units. And, usually, there are people willing to rent them.

Amenities vary from condo association to condo association. But it's possible to buy condo positioned in a complex which has swimming pool, 24-hour security, etc things.

The disadvantages of buying a condo as an investment You have to follow rules which are not yours. Each association has its own rules. As well as the rules can alter. One of the rules that can change is whether tenants are permitted or otherwise. If you own a condo and also the association votes you can forget tenants, once your lease is up, you either move in or sell. Your association might opt to go with the 'no more tenants' rule at the same time when selling is not an great option.

Or, worse, they decide to allow a lot of rentals. Way too many 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 your investment difficult, not forgetting refinancing it.

Yes, you could make sure you have something to say of decisions and acquire yourself elected around 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. In other words, you get to give the same amount regardless of whether you use or otherwise not the services (for instance, the water bill percentage of your assessment).