Buying a Condo As an Investment Property9927566

In case you are like most people, you would like your financial future to become better than your current, or at least not worse. So, you determine money aside and think about ways to ensure it is grow. The choices seem endless, but you have selected real estate as your investment arena, and you are considering condos.

Condos have a lot of advantages over single family houses or 2-4 unit buildings. And several disadvantages. In my conversations with individuals 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 that are professionally managed, offer relief for a time to condo investors.

You don't need to worry about roof, stairs, landscaping and the like. The association protects them. For any price, the simple truth is, but you do not have to do them. A number of the problems within the unit can also be taken care of from 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 everything else and run to your condo because the sink's leaking. Price

Some condos are incredibly expensive. However, houses of comparable size within the same neighborhood be more expensive. So, you can buy an investment property in the better neighborhood. Also, in most areas, there isn't any such thing like a 1-bedroom house, but you will find 1-bedroom, or even no bedroom, condo units. And, usually, you will find people willing to rent them.

Amenities differ from condo association to condo association. However it is possible to purchase a condo located in a complex which has swimming pool, 24-hour security, and such things.

The disadvantages of buying a condo as a possible investment You have to follow rules that aren't yours. Each association features its own rules. And also the rules can change. One of the rules that can change is whether or not tenants are permitted or otherwise. If you own a condo as well as the association votes no more tenants, whenever your lease is up, you either relocate or sell. Your association might decide to go with the 'no more tenants' rule at any given time when selling is not an great option.

Or, worse, they opt to allow a lot of rentals. A lot of tenants will make getting a mortgage difficult (FHA among others do not like condo associations where greater than 10% of the units are rented.) which makes reselling neglect the difficult, not to mention refinancing it.

Yes, you could make sure you've got something to say about decisions and acquire yourself elected on the board of directors; still, you aren't the only decision maker.

You make payment for the same amount whether your unit is rented or vacant. Quite simply, you get to give the same amount whether you use or otherwise not the services (as an example, the water bill part of your assessment).