Buying a Condo As an Investment Property420354

If you are like most people, you want your financial future to be better than your present, or at least not worse. So, you place money aside and consider ways to make it grow. The options seem endless, but you have selected real estate as your investment arena, and you're considering condos.

Condos have several advantages over single family houses or 2-4 unit buildings. And many disadvantages. In my conversations with folks who've invested in condos, few were aware of all of them. So now they are.

Benefits of buying a Peak Residence as a possible investment property

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

You don't have to worry about roof, stairs, landscaping and the like. The association manages them. For a price, the simple truth is, but you don't need to do them. A few of the problems in 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 need to drop the rest and run to your condo as the sink's leaking. Price

Some condos are incredibly expensive. However, houses of comparable size inside the same neighborhood be more expensive. So, you can buy an investment property in a better neighborhood. Also, in most areas, there is no such thing like a 1-bedroom house, but there are 1-bedroom, or even no bedroom, condo units. And, usually, you will find people ready to rent them.

Amenities differ from condo association to condo association. However it is possible to purchase a condo located in a complex which includes 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 has its own rules. And also the rules can alter. One of the rules that may change is whether or not tenants are permitted or otherwise not. If you own a condo and the association votes you can forget 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 way too many rentals. Too many tenants can 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 can also make sure you have something to say of decisions and obtain yourself elected on the board of directors; still, you aren't the only decision maker.

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