Buying a Condo Being an Investment Property2840429

If you are like most people, you want your financial future to become better than your existing, or at least not worse. So, you place money aside and consider ways to ensure it is grow. The choices seem endless, but you've selected real estate since your investment arena, and you are considering condos.

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

Benefits of buying a Peak Residence Showflat as a possible 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 have to worry about roof, stairs, landscaping and such. The association manages them. To get a price, it's correct, but you don't have to do them. A few of the problems in the unit may also be taken care of from the complex maintenance crew. That differs from condo association to condo association. And they charge you for it, but you do not have to drop anything else and go to your condo since the sink's leaking. Price

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

Amenities differ from condo association to condo association. But it is possible to invest in a condo situated in a complex which includes swimming pool, 24-hour security, and such things.

The disadvantages of purchasing a condo as an investment You must follow rules which are not yours. Each association possesses its own rules. And the rules can change. One of the rules that can change is if tenants are permitted or otherwise not. If you own a condo and also the association votes you can forget tenants, when your lease is up, you either relocate or sell. Your association might decide to go with the 'no more tenants' rule at a time when selling is not a great option.

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

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

You have to pay the same amount whether your unit is rented or vacant. In other words, you get to spend the money for same amount regardless of whether you use or not the services (as an example, the water bill part of your assessment).