Buying a Condo As a possible Investment Property9704397

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 consider ways to ensure it is grow. The choices seem endless, but you have decided 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 many disadvantages. In my conversations with individuals who've committed to condos, few were mindful of all of them. So now they are.

Features of buying a Peak Residence being an investment property

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

It's not necessary to worry about roof, stairs, landscaping and the like. The association manages them. To get a price, it's true, but you do not have to do them. Some of the problems in the unit may also be taken care of through the complex maintenance crew. That is different from condo association to condo association. Plus they charge you for it, but you don't need to drop anything else and set you back your condo as the sink's leaking. Price

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

Amenities differ from condo association to condo association. But it is possible to purchase a condo positioned in a complex that has swimming pool, 24-hour security, and the like things.

The disadvantages of buying a condo being an investment You must follow rules that aren't 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 not. If you possess a condo as well as the association votes no more tenants, whenever your lease is up, you either move in or sell. Your association might opt with the 'no more tenants' rule at any given time when selling is not a great option.

Or, worse, they decide to allow a lot of rentals. Too many tenants can 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 forgetting refinancing it.

Yes, you can also make sure you've got something to say about 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. Quite simply, you get to pay the same amount whether you use or otherwise not the services (for instance, the water bill part of your assessment).