Buying a Condo Being an Investment Property2584360

If you're like most people, you need your financial future to become better than your present, or at least not worse. So, you set money aside and think of ways to make it grow. The options seem endless, but you have decided real estate as the investment arena, and you're considering condos.

Condos have several advantages over single family houses or 2-4 unit buildings. And many disadvantages. In my conversations with individuals who've invested in condos, few were conscious of all of them. So here they are.

Features of buying a Peak Residence Showflat being an investment property

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

It's not necessary to worry about roof, stairs, landscaping and the like. The association manages them. To get a price, it's correct, but you do not have to do them. A number of the problems within the unit can also be taken care of through the complex maintenance crew. That varies from condo association to condo association. Plus they charge you because of it, but you don't have to drop anything else and run to your condo because the sink's leaking. Price

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

Amenities vary from condo association to condo association. But it is possible to buy condo located in a complex which has swimming pool, 24-hour security, and the like things.

The disadvantages of purchasing a condo being an investment You have to follow rules that aren't yours. Each association has its own rules. And also the rules can alter. One of the rules that can change is if tenants are permitted or not. If you possess a condo and also the association votes no more tenants, whenever your lease is up, you either relocate or sell. Your association might opt to go with the 'no more tenants' rule at the same time when selling is not a great option.

Or, worse, they choose to allow a lot of rentals. A lot of tenants could make getting a mortgage difficult (FHA and 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 got something to say of decisions and get yourself elected around 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. Put simply, you get to give the same amount whether you use or not the services (as an example, the water bill part of your assessment).