Buying a Condo As an Investment Property9264051

If you are like most people, you need your financial future to be better than your present, or at least not worse. So, you set money aside and think of ways to allow it to be grow. The options seem endless, but you've selected real estate since 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 many disadvantages. Within my conversations with people who've invested in condos, few were conscious of all of them. So now they are.

Benefits 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 some relief 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 don't have to do them. A few of the problems in the unit can also be taken care of from the complex maintenance crew. That varies from condo association to condo association. And so they charge you for this, but you don't have to drop the rest and go to your condo as the sink's leaking. Price

Some condos are extremely expensive. However, houses of comparable size within the same neighborhood cost more. So, you can purchase an investment property inside a better neighborhood. Also, in many areas, there's no such thing like a 1-bedroom house, but you can find 1-bedroom, or even no bedroom, condo units. And, usually, you can find people ready to rent them.

Amenities differ from condo association to condo association. But it's possible to purchase a condo positioned in a complex that has swimming pool, 24-hour security, etc things.

The disadvantages of purchasing a condo as an investment You have to follow rules that aren't yours. Each association features its own rules. And the rules can transform. One of the rules that can change is if tenants are permitted or not. If you own a condo as well as the association votes you can forget tenants, once 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 is not an great option.

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

Yes, you may earn 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 spend the same amount whether your unit is rented or vacant. In other words, you get to spend the money for same amount whether you use or not the services (for instance, the water bill part of your assessment).