Buying a Condo As a possible Investment Property843889

In case you are like most people, you would like your financial future being better than your current, or at least not worse. So, you set money aside and think of ways to allow it to be grow. The options seem endless, but you've selected real estate as your investment arena, and you are considering condos.

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

Features of buying a Peak Residence as a possible investment property

Maintenance needs to be done on all properties. Condos, especially condos which are professionally managed, offer relief for a time to condo investors.

It's not necessary to worry about roof, stairs, landscaping and the like. The association protects them. To get a price, it's correct, but you don't need to do them. A number of the problems inside the unit can be taken care of by the complex maintenance crew. That differs from condo association to condo association. And they charge you because of it, but you don't have to drop the rest and run to your condo as the sink's leaking. Price

Some condos are incredibly expensive. However, houses of similar size in the same neighborhood cost more. So, you can purchase an investment property inside a better neighborhood. Also, in many areas, there's 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. But it's possible to purchase a condo located in a complex which has swimming pool, 24-hour security, etc things.

The disadvantages of purchasing a condo as a possible investment You have to follow rules which are not yours. Each association features its own rules. And also the rules can alter. One of the rules that can change is whether or not tenants are permitted or otherwise. If you own a condo and the association votes no more tenants, once your lease comes to an end, you either relocate or sell. Your association might opt to go with the 'no more tenants' rule at the same time when selling isn't a great option.

Or, worse, they opt to allow way too many rentals. Too many tenants could make getting a mortgage difficult (FHA among others do not like condo associations where more than 10% of the units are rented.) making reselling ignore the difficult, as well as refinancing it.

Yes, you could make sure you've got something to say about decisions and acquire 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 otherwise not the services (for example, the water bill part of your assessment).