Buying a Condo As an Investment Property8189395

If you are like most people, you want your financial future being better than your current, or at least not worse. So, you set money aside and think of ways to make it grow. The choices seem endless, but you've 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. Within my conversations with folks who've invested in condos, few were conscious of all of them. So now they are.

Features of buying a Peak Residence Showflat being an investment property

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

You don't need to worry about roof, stairs, landscaping and such. The association protects them. To get a price, it's correct, but you do not have to do them. A number of the problems in the unit may also be taken care of through the complex maintenance crew. That is different from condo association to condo association. Plus they charge you for it, but you don't need to drop the rest and go to your condo as the sink's leaking. Price

Some condos are very expensive. However, houses of comparable size in the same neighborhood are more expensive. So, you should buy an investment property in a better neighborhood. Also, in most areas, there is no such thing being a 1-bedroom house, but you will 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. 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 buying a condo being an investment You must follow rules which are not 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 possess a condo and the association votes you can forget tenants, once your lease expires, you either move around in or sell. Your association might decide to go with the 'no more tenants' rule at any given time when selling is not a great option.

Or, worse, they decide to allow way too many rentals. Way too many tenants could make getting a mortgage difficult (FHA yet others do not like condo associations where greater than 10% of the units are rented.) helping to make reselling ignore the difficult, not forgetting refinancing it.

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

You make payment for the same amount whether your unit is rented or vacant. In other words, you get to pay the same amount regardless of whether you use or otherwise the services (for example, the water bill portion of your assessment).