Buying a Condo As an Investment Property1077456

In case you are like most people, you need your financial future to become better than your present, or at least not worse. So, you determine money aside and think of ways to make it grow. The options seem endless, but you've selected real estate since 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. In my conversations with folks who've dedicated to condos, few were mindful of all of them. So now they are.

Benefits of buying a Peak Residence as an investment property

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

You don't need to worry about roof, stairs, landscaping and the like. The association manages them. For a price, the simple truth is, but you do not have to do them. A number of the problems in the unit can be taken care of from the complex maintenance crew. That differs from condo association to condo association. And so they charge you for this, but you do not have to drop anything else and go to your condo since the sink's leaking. Price

Some condos are extremely expensive. However, houses of similar size within the same neighborhood are more expensive. So, you can purchase an investment property in a better neighborhood. Also, 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, you will find people prepared to rent them.

Amenities differ from condo association to condo association. However it is possible to purchase a condo situated in a complex which includes swimming pool, 24-hour security, and such things.

The disadvantages of purchasing a condo as a possible investment You have to follow rules that aren't yours. Each association features its own rules. As well as the rules can change. One of the rules that will change is whether tenants are permitted or otherwise. If you own a condo and also the association votes forget about tenants, when your lease comes to an end, you either move around in or sell. Your association might opt with the 'no more tenants' rule at the same time when selling is not an great option.

Or, worse, they opt to allow a lot of rentals. A lot of tenants can make getting a mortgage difficult (FHA and others do not like condo associations where greater than 10% of the units are rented.) helping to make reselling neglect the difficult, as well as refinancing it.

Yes, you can also make sure you have something to say on decisions and get yourself elected around the board of directors; still, you aren't the only decision maker.

You make payment for the same amount whether your unit is rented or vacant. Quite simply, you get to spend the money for same amount whether you use or otherwise not the services (as an example, the water bill part of your assessment).