Buying a Condo As an Investment Property728069

In case 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. Your 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 lots of disadvantages. Within my conversations with folks who've dedicated to condos, few were aware of all of them. So now they are.

Advantages of buying a Peak Residence as an investment property

Maintenance needs to be done on all properties. Condos, especially condos which are professionally managed, offer relief for a time to condo investors.

You don't have to worry about roof, stairs, landscaping etc. The association takes care of them. For any price, it's true, but you don't have to do them. A few of the problems within the unit can be taken care of by the complex maintenance crew. That varies from condo association to condo association. And so they charge you for it, but you don't need to drop the rest and run to your condo because the sink's leaking. Price

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

Amenities differ from condo association to condo association. However it is possible to invest in a condo located in a complex which includes swimming pool, 24-hour security, and the like things.

The disadvantages of purchasing a condo as an investment You have to follow rules that aren't yours. Each association possesses its own rules. And also the rules can alter. One of the rules that will change is whether tenants are permitted or otherwise. If you own a condo as well as the association votes no more tenants, when your lease comes to an end, you either move in or sell. Your association might opt to go with the 'no more tenants' rule at any given time when selling is not an great option.

Or, worse, they choose to allow too many rentals. A lot of tenants can make getting a mortgage difficult (FHA yet others do not like condo associations where a lot more than 10% of the units are rented.) making reselling neglect the difficult, not forgetting refinancing it.

Yes, you could make sure you've something to say about decisions and obtain yourself elected around the board of directors; still, you are not the only decision maker.

You spend the same amount whether your unit is rented or vacant. Put simply, you get to give the same amount regardless of whether you use or otherwise the services (for instance, the water bill percentage of your assessment).