Buying a Condo As an Investment Property6707230

If you are like most people, you want your financial future to be better than your present, or at least not worse. So, you determine money aside and consider ways to allow it to be grow. The options seem endless, but you have selected real estate as the investment arena, and you are 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 conscious of all of them. So here they are.

Features of buying a Peak Residence being an investment property

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

You don't have to worry about roof, stairs, landscaping etc. The association takes care of them. To get a price, it's correct, but you do not have to do them. A number of the problems in the unit can be taken care of from the complex maintenance crew. That varies from condo association to condo association. And so they charge you because of it, but you don't have to drop anything else and run to your condo because the sink's leaking. Price

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

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

The disadvantages of purchasing a condo being an investment You need to follow rules which are not yours. Each association has its own rules. And also the rules can alter. One of the rules that can change is if tenants are permitted or not. If you own a condo and also the association votes you can forget tenants, when your lease is up, you either move in or sell. Your association might opt with the 'no more tenants' rule at any given time when selling is not a great option.

Or, worse, they decide to allow too many rentals. 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.) making reselling ignore the difficult, as well as refinancing it.

Yes, you can also make sure you've got something to say of decisions and acquire yourself elected on 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 regardless of whether you use or not the services (for instance, the water bill part of your assessment).