Buying a Condo As an Investment Property2893832

If you're like most people, you need your financial future to become better than your existing, or at least not worse. So, you set money aside and think of ways to ensure it is grow. Your options seem endless, but you've selected 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 many disadvantages. In my conversations with folks who've dedicated to condos, few were aware of all of them. So here they are.

Features of buying a Peak Residence being an investment property

Maintenance needs to 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 such. The association manages them. For any price, it's correct, but you don't have to do them. A number of the problems within the unit can also be taken care of by 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 everything else and go to your condo as the sink's leaking. Price

Some condos are extremely expensive. However, houses of similar size inside the same neighborhood are more expensive. So, you can purchase an investment property inside a better neighborhood. Also, in many areas, there is no such thing being 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. However it is possible to purchase a condo positioned in a complex that has swimming pool, 24-hour security, and the like things.

The disadvantages of shopping for a condo being an investment You need to follow rules that aren't yours. Each association features its own rules. And also the rules can alter. One of the rules that can change is whether tenants are permitted or not. If you own a condo and the association votes no more tenants, whenever 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 an great option.

Or, worse, they decide to allow too many rentals. A lot of tenants will make getting a mortgage difficult (FHA among others do not like condo associations where greater than 10% of the units are rented.) making reselling neglect the difficult, not to mention refinancing it.

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

You have to pay the same amount whether your unit is rented or vacant. Put simply, you get to pay the same amount regardless of whether you use or otherwise the services (for example, the water bill portion of your assessment).