Buying a Condo As an Investment Property6946849

If you are like most people, you would like your financial future being better than your current, or at least not worse. So, you set money aside and think about ways to make it grow. The choices seem endless, but you have decided real estate as your investment arena, and you're simply considering condos.

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

Benefits of buying a Peak Residence Showflat as a possible 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 etc. The association protects them. For a price, the simple truth is, but you do not have to do them. Some of the problems inside the unit can be taken care of by the complex maintenance crew. That is different from condo association to condo association. And so they charge you because of it, but you do not have to drop anything else and go to your condo as the sink's leaking. Price

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

Amenities change from condo association to condo association. But it is possible to buy condo located in a complex which includes swimming pool, 24-hour security, and such things.

The disadvantages of shopping for a condo being an investment You need to follow rules which are not yours. Each association possesses its own rules. As well as the rules can alter. One of the rules that will change is if tenants are permitted or not. If you possess a condo and also the association votes forget about tenants, when your lease expires, you either move around in or sell. Your association might decide to go with the 'no more tenants' rule at a time when selling is not a great option.

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

Yes, you could make sure you've something to say on decisions and acquire yourself elected about the board of directors; still, you aren't 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 regardless of whether you use or otherwise the services (as an example, the water bill portion of your assessment).