Buying a Condo As an Investment Property2617319

If you're like most people, you need your financial future to become better than your current, or at least not worse. So, you set money aside and consider ways to ensure it is grow. Your options seem endless, but you've selected real estate as the investment arena, and you're considering condos.

Condos have several advantages over single family houses or 2-4 unit buildings. And many disadvantages. Within my conversations with people who've committed to condos, few were conscious of all of them. Here they are.

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

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

You don't need to worry about roof, stairs, landscaping and the like. The association protects them. For a price, it's true, but you don't have to do them. Some of the problems inside the unit may also be taken care of by the complex maintenance crew. That is different from condo association to condo association. And they charge you for it, but you don't need to drop the rest and run to your condo since the sink's leaking. Price

Some condos are incredibly expensive. However, houses of comparable size in the same neighborhood cost more. So, you should buy an investment property inside a better neighborhood. Also, in many 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 prepared to rent them.

Amenities change 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 such things.

The disadvantages of shopping for a condo as a possible investment You must follow rules which are not yours. Each association has its own rules. And the rules can change. One of the rules that will change is whether or not tenants are permitted or otherwise. If you own a condo and the association votes forget about tenants, once your lease is up, you either relocate or sell. Your association might opt to go with the 'no more tenants' rule at the same time when selling isn't a great option.

Or, worse, they choose to allow too many rentals. Too many tenants can make getting a mortgage difficult (FHA among others do not like condo associations where more than 10% of the units are rented.) helping to make reselling neglect the difficult, as well as refinancing it.

Yes, you could make sure you've something to say about decisions and get yourself elected on 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. In other words, you get to spend the money for same amount whether you use or otherwise the services (for instance, the water bill portion of your assessment).