Buying a Condo As an Investment Property1615849

If you're like most people, you would like your financial future to become better than your existing, or at least not worse. So, you set money aside and consider ways to make it grow. The choices seem endless, but you've selected real estate since your investment arena, and you're simply considering condos.

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

Advantages of buying a Peak Residence as a possible investment property

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

You don't have to worry about roof, stairs, landscaping and such. The association protects them. For any price, it's true, but you do not have to do them. A few 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 because of it, but you don't have to drop anything else and run to your condo as the sink's leaking. Price

Some condos are extremely expensive. However, houses of similar size inside the same neighborhood be more expensive. So, you should buy an investment property in a better neighborhood. Also, in most areas, there's no such thing as a 1-bedroom house, but you will find 1-bedroom, or even no bedroom, condo units. And, usually, you will find people willing to rent them.

Amenities vary from condo association to condo association. But it's possible to invest in a condo situated in a complex which has swimming pool, 24-hour security, and such things.

The disadvantages of purchasing a condo as an investment You must follow rules that are not yours. Each association features its own rules. And also the rules can change. One of the rules that can change is if tenants are permitted or not. If you own a condo as well as the association votes no more tenants, once your lease comes to an end, you either relocate or sell. Your association might decide to go with the 'no more tenants' rule at a time when selling is not a great option.

Or, worse, they decide to allow too many rentals. Way too many tenants could make getting a mortgage difficult (FHA and others do not like condo associations where a lot more than 10% of the units are rented.) which makes reselling ignore the difficult, as well as refinancing it.

Yes, you can also make sure you've something to say about decisions and get yourself elected on the board of directors; still, you are not the only decision maker.

You make payment for the same amount whether your unit is rented or vacant. Put simply, you get to give the same amount whether you use or not the services (for example, the water bill percentage of your assessment).