Buying a Condo As an Investment Property3293662

If you're like most people, you want your financial future to be better than your current, or at least not worse. So, you determine money aside and think of ways to allow it to be grow. The options seem endless, but you've selected real estate as the investment arena, and you're simply considering condos.

Condos have several advantages over single family houses or 2-4 unit buildings. And several disadvantages. During my conversations with people who've dedicated to condos, few were aware of all of them. So now 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 can be professionally managed, offer some relief to condo investors.

You don't need to worry about roof, stairs, landscaping etc. The association manages them. For a price, it's correct, but you don't need to do them. Some of the problems within the unit may also be taken care of by the complex maintenance crew. That varies from condo association to condo association. And so they charge you for this, but you don't need to drop the rest and run to your condo since the sink's leaking. Price

Some condos are very expensive. However, houses of similar size in the same neighborhood cost more. So, you can buy an investment property in a better neighborhood. Also, in many areas, there isn't any such thing like a 1-bedroom house, but you will find 1-bedroom, or even no bedroom, condo units. And, usually, you can find people ready to rent them.

Amenities differ from condo association to condo association. But it's possible to invest in a condo located in a complex that has swimming pool, 24-hour security, etc things.

The disadvantages of buying a condo as a possible investment You have to follow rules that aren't yours. Each association possesses its own rules. And also the rules can alter. One of the rules that may change is whether or not tenants are permitted or 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 to go with the 'no more tenants' rule at any given time when selling is not an great option.

Or, worse, they opt to allow way too many rentals. Way too many tenants will make getting a mortgage difficult (FHA yet others do not like condo associations where more than 10% of the units are rented.) making reselling your investment difficult, not forgetting refinancing it.

Yes, you may earn sure you've got something to say on decisions and acquire yourself elected on the board of directors; still, you're not the only decision maker.

You spend 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 not the services (for example, the water bill percentage of your assessment).