Buying a Condo As an Investment Property2565853

In case you are like most people, you need your financial future to be better than your existing, or at least not worse. So, you determine money aside and consider ways to make it grow. Your options seem endless, but you have selected real estate as your investment arena, and you're simply considering condos.

Condos have several advantages over single family houses or 2-4 unit buildings. And lots of disadvantages. During my conversations with individuals who've dedicated to condos, few were mindful of all of them. Here they are.

Benefits 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 relief for a time to condo investors.

You don't need to worry about roof, stairs, landscaping and the like. The association takes care of them. For any price, it's true, but you don't have to do them. A number of the problems inside 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 because of it, but you don't have to drop everything else and go to your condo since the sink's leaking. Price

Some condos are extremely expensive. However, houses of comparable size inside the same neighborhood cost more. So, you can buy an investment property in the better neighborhood. Also, generally in most areas, there isn't any such thing being a 1-bedroom house, but there are 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. But it's possible to invest in a condo positioned in a complex which includes swimming pool, 24-hour security, etc things.

The disadvantages of buying a condo as an investment You need to follow rules that aren't yours. Each association possesses its own rules. And the rules can transform. One of the rules that may change is whether tenants are permitted or otherwise not. If you possess a condo as well as the association votes no more tenants, whenever your lease expires, 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 choose to allow way too many rentals. A lot of tenants can 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 your investment difficult, not forgetting refinancing it.

Yes, you may earn sure you've got something to say of decisions and get 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 pay the same amount whether you use or otherwise the services (as an example, the water bill part of your assessment).