Buying a Condo As a possible Investment Property581828

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

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

Benefits of buying a Peak Residence Showflat being an investment property

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

You don't have to worry about roof, stairs, landscaping etc. The association takes care of them. For a price, it's true, but you don't have to do them. A few of the problems within the unit can also be taken care of by 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 everything else and run to your condo as the sink's leaking. Price

Some condos are very expensive. However, houses of similar size in the same neighborhood cost more. So, you can purchase an investment property in a better neighborhood. Also, generally in most areas, there isn't any such thing as 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 vary from condo association to condo association. But it is possible to invest in a condo located in a complex that has swimming pool, 24-hour security, etc things.

The disadvantages of purchasing a condo as an investment You need to follow rules that are not yours. Each association has its own rules. And also the rules can transform. One of the rules that will change is if tenants are permitted or otherwise. If you own a condo and also the association votes forget about tenants, when your lease expires, you either move around in or sell. Your association might opt with the 'no more tenants' rule at any given time when selling isn't a great option.

Or, worse, they decide to allow a lot of rentals. A lot of tenants could make getting a mortgage difficult (FHA yet others do not like condo associations where more than 10% of the units are rented.) which makes reselling neglect the difficult, not to mention refinancing it.

Yes, you can also make sure you've got something to say of decisions and acquire yourself elected around the board of directors; still, you're not the only decision maker.

You spend the same amount whether your unit is rented or vacant. In other words, you get to pay the same amount regardless of whether you use or not the services (for example, the water bill part of your assessment).