Buying a Condo Being an Investment Property2240834

In case you are like most people, you need your financial future to become better than your present, or at least not worse. So, you determine money aside and think of ways to ensure it is grow. Your options seem endless, but you've 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 lots of disadvantages. Within my conversations with people who've dedicated to condos, few were conscious of all of them. So here they are.

Advantages of buying a Peak Residence Showflat as an investment property

Maintenance has to be done on all properties. Condos, especially condos which are professionally managed, offer some respite to condo investors.

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

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

Amenities change from condo association to condo association. However it is possible to buy condo positioned in a complex which includes swimming pool, 24-hour security, etc things.

The disadvantages of purchasing a condo as a possible investment You must follow rules which are not yours. Each association possesses its own rules. As well as the rules can alter. One of the rules that can change is whether tenants are permitted or otherwise not. If you own a condo as well as the association votes you can forget tenants, whenever your lease expires, you either move around in or sell. Your association might opt with the 'no more tenants' rule at the same time when selling isn't a great option.

Or, worse, they decide to allow a lot of rentals. Too many 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.) helping to make reselling your investment difficult, not to mention refinancing it.

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

You spend the same amount whether your unit is rented or vacant. Quite simply, you get to spend the money for same amount regardless of whether you use or not the services (for instance, the water bill percentage of your assessment).