Buying a Condo As an Investment Property2012406

If you are like most people, you would like your financial future to become better than your existing, or at least not worse. So, you determine money aside and think about ways to allow it to be grow. The options seem endless, but you have decided real estate as the investment arena, and you are considering condos.

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

Benefits of buying a Peak Residence Showflat as a possible investment property

Maintenance has 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 manages them. To get a price, the simple truth is, but you don't need to do them. A number of the problems within the unit can also be taken care of from the complex maintenance crew. That is different from condo association to condo association. And so they charge you for this, but you don't need to drop anything else and run to your condo since the sink's leaking. Price

Some condos are incredibly expensive. However, houses of comparable size within the same neighborhood be more expensive. So, you can purchase an investment property in the better neighborhood. Also, in most areas, there isn't any 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. However it is possible to buy condo positioned in a complex which includes swimming pool, 24-hour security, and the like things.

The disadvantages of purchasing a condo as a possible investment You need to follow rules that are not yours. Each association possesses its own rules. As well as the rules can change. One of the rules that may change is whether or not tenants are permitted or otherwise not. If you own a condo as well as the association votes you can forget 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 a time when selling is not an great option.

Or, worse, they decide to allow too many rentals. Way 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.) helping to make reselling neglect the difficult, as well as refinancing it.

Yes, you can also make sure you've got something to say on decisions and acquire yourself elected about 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 give the same amount regardless of whether you use or otherwise not the services (as an example, the water bill part of your assessment).