Buying a Condo As a possible Investment Property9401339

In case you are like most people, you want your financial future to be better than your present, or at least not worse. So, you set money aside and consider ways to make it grow. The choices seem endless, but you have selected real estate as your investment arena, and you are considering condos.

Condos have several advantages over single family houses or 2-4 unit buildings. And lots of disadvantages. Within my conversations with people 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 must be done on all properties. Condos, especially condos which are professionally managed, offer some relief to condo investors.

It's not necessary to worry about roof, stairs, landscaping and such. The association manages them. For any price, it's true, but you don't have to do them. A few of the problems within the unit can be taken care of through the complex maintenance crew. That varies from condo association to condo association. And they charge you for this, but you do not have to drop anything else and set you back your condo because the sink's leaking. Price

Some condos are very expensive. However, houses of similar size within the same neighborhood are more expensive. So, you can buy an investment property in the better neighborhood. Also, generally in most areas, there isn't any such thing like a 1-bedroom house, but you can find 1-bedroom, or even no bedroom, condo units. And, usually, there are people prepared to rent them.

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

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

Or, worse, they choose to allow a lot of rentals. Too many tenants could make getting a mortgage difficult (FHA among others do not like condo associations where greater than 10% of the units are rented.) which makes reselling your investment difficult, not to mention refinancing it.

Yes, you could make sure you have something to say of decisions and obtain yourself elected around 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 pay the same amount regardless of whether you use or not the services (for example, the water bill percentage of your assessment).