Buying a Condo Being an Investment Property1209665

In case you are like most people, you want your financial future to be better than your present, or at least not worse. So, you determine money aside and consider ways to make it grow. Your options seem endless, but you have decided 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. Within my conversations with individuals who've committed to condos, few were aware of all of them. So here they are.

Features of buying a Peak Residence being an investment property

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

It's not necessary to worry about roof, stairs, landscaping etc. The association manages them. To get a price, the simple truth is, but you don't need to do them. A few of the problems inside the unit can also be taken care of from the complex maintenance crew. That varies from condo association to condo association. Plus they charge you for it, but you don't need to drop the rest and set you back your condo because 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 purchase an investment property in the better neighborhood. Also, generally 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 vary from condo association to condo association. But it is possible to invest in a condo situated in a complex that has swimming pool, 24-hour security, and such things.

The disadvantages of purchasing a condo as a possible investment You must follow rules which are not yours. Each association has its own rules. And the rules can change. One of the rules that can change is if tenants are permitted or not. If you own a condo and the association votes no more tenants, once your lease expires, you either move in or sell. Your association might opt with the 'no more tenants' rule at the same time when selling is not a great option.

Or, worse, they opt to allow too many rentals. Way too many tenants could make getting a mortgage difficult (FHA and others do not like condo associations where greater than 10% of the units are rented.) making reselling your investment difficult, not to mention refinancing it.

Yes, you can also make sure you have something to say on decisions and acquire yourself elected about the board of directors; still, you're not the only decision maker.

You spend 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 not the services (for example, the water bill part of your assessment).