Buying a Condo As an Investment Property6370779

If you are like most people, you want your financial future being better than your current, or at least not worse. So, you place money aside and think of ways to allow it to be grow. The options seem endless, but you have decided 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 many disadvantages. Within my conversations with individuals who've invested in condos, few were aware of all of them. So here they are.

Advantages of buying a Peak Residence as an investment property

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

You don't need to worry about roof, stairs, landscaping and such. The association protects them. For a price, it's true, but you do not have to do them. A number of the problems within the unit may also be taken care of through the complex maintenance crew. That differs from condo association to condo association. And so they charge you because of it, but you do not have to drop everything else and run to your condo as 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 buy an investment property in the better neighborhood. Also, in most areas, there's 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 willing to rent them.

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

The disadvantages of shopping for a condo being an investment You must follow rules that aren't yours. Each association has its own rules. As well as the rules can alter. One of the rules that will change is if tenants are permitted or otherwise not. If you own a condo and the association votes forget about tenants, when your lease comes to an end, you either relocate or sell. Your association might opt with the 'no more tenants' rule at any given time when selling isn't a great option.

Or, worse, they opt to allow way too many rentals. A lot of tenants will make getting a mortgage difficult (FHA and others do not like condo associations where greater than 10% of the units are rented.) making reselling neglect the difficult, not to mention refinancing it.

Yes, you can also make sure you have something to say on decisions and get yourself elected about 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 pay the same amount regardless of whether you use or otherwise not the services (for example, the water bill part of your assessment).