Buying a Condo As an Investment Property3247515

In case you are like most people, you would like your financial future to be better than your current, or at least not worse. So, you set money aside and consider ways to allow it to be grow. Your options seem endless, but you have 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. Within my conversations with folks who've invested in condos, few were conscious of all of them. So here they are.

Benefits of buying a Peak Residence Showflat being an investment property

Maintenance needs to be done on all properties. Condos, especially condos which can be professionally managed, offer relief for a time to condo investors.

It's not necessary to worry about roof, stairs, landscaping and such. The association protects them. To get a price, it's correct, but you don't have to do them. Some of the problems within the unit can be taken care of from the complex maintenance crew. That is different from condo association to condo association. Plus they charge you for it, but you don't have to drop anything else and run to your condo since the sink's leaking. Price

Some condos are very expensive. However, houses of similar size within the same neighborhood be more expensive. So, you can purchase an investment property in a better neighborhood. Also, 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, there are people prepared to rent them.

Amenities vary from condo association to condo association. But it's possible to purchase a condo situated in a complex which has swimming pool, 24-hour security, and the like things.

The disadvantages of buying a condo as a possible investment You must follow rules which are not yours. Each association features its own rules. And also the rules can change. One of the rules that may change is whether or not tenants are permitted or not. If you possess a condo and also the association votes you can forget tenants, once your lease expires, you either move in or sell. Your association might opt with the 'no more tenants' rule at the same time when selling isn't a great option.

Or, worse, they decide to allow too many rentals. Way too many tenants could make getting a mortgage difficult (FHA and others do not like condo associations where a lot more than 10% of the units are rented.) helping to make reselling your investment difficult, not to mention refinancing it.

Yes, you can also make sure you've got something to say of decisions and get yourself elected around the board of directors; still, you're not the only decision maker.

You have to pay the same amount whether your unit is rented or vacant. Quite simply, you get to spend the money for same amount whether you use or otherwise not the services (for instance, the water bill part of your assessment).