Buying a Condo As an Investment Property3006320

If you're like most people, you need your financial future being better than your present, or at least not worse. So, you determine money aside and consider ways to make it grow. The options seem endless, but you have decided real estate as 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 lots of disadvantages. During my conversations with individuals who've committed to condos, few were mindful of all of them. Here they are.

Advantages of buying a Peak Residence as a possible investment property

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

It's not necessary to worry about roof, stairs, landscaping and such. The association takes care of them. For a price, it's true, but you don't have to do them. A number of the problems within 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 do not have to drop anything else and set you back your condo since the sink's leaking. Price

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

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

The disadvantages of purchasing a condo as a possible investment You have to follow rules which are not yours. Each association possesses its own rules. As well as the rules can alter. One of the rules that can change is if tenants are permitted or otherwise not. If you own a condo and also the association votes you can forget tenants, once your lease expires, you either move around in or sell. Your association might decide to go with the 'no more tenants' rule at any given time when selling is not a great option.

Or, worse, they choose to allow way too many rentals. Way too many tenants will make getting a mortgage difficult (FHA among 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 got something to say of decisions and obtain yourself elected around 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. Put simply, you get to spend the money for same amount regardless of whether you use or otherwise the services (for example, the water bill part of your assessment).