Buying a Condo As an Investment Property5107007

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

Condos have several advantages over single family houses or 2-4 unit buildings. And lots of disadvantages. In my conversations with people who've dedicated to condos, few were mindful of all of them. So here they are.

Features of buying a Peak Residence Showflat being an 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 need to worry about roof, stairs, landscaping and the like. The association protects them. To get a price, it's true, but you do not have to do them. Some of the problems in the unit can also be taken care of from the complex maintenance crew. That differs from condo association to condo association. Plus they charge you because of it, but you don't have to drop the rest and set you back your condo as the sink's leaking. Price

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

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

The disadvantages of shopping for a condo as an investment You need to follow rules that aren't yours. Each association features its own rules. And also the rules can transform. One of the rules that may change is whether tenants are permitted or otherwise not. If you own a condo and the association votes you can forget tenants, once your lease expires, you either move in or sell. Your association might opt to go with the 'no more tenants' rule at any given time when selling isn't a great option.

Or, worse, they decide to allow too many rentals. Too many tenants can make getting a mortgage difficult (FHA yet others do not like condo associations where greater than 10% of the units are rented.) which makes 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 about the board of directors; still, you're not the only decision maker.

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