Buying a Condo Being an Investment Property3429555

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

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

Features of buying a Peak Residence as a possible investment property

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

You don't have to worry about roof, stairs, landscaping and the like. The association manages them. For a price, it's correct, but you do not have to do them. Some of the problems inside the unit may also be taken care of by the complex maintenance crew. That differs from condo association to condo association. Plus they charge you for it, but you don't need to drop anything else and set you back your condo because the sink's leaking. Price

Some condos are incredibly expensive. However, houses of comparable size inside the same neighborhood are more expensive. So, you can purchase 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, there are people prepared to rent them.

Amenities change from condo association to condo association. But it's possible to purchase a condo located in a complex that has swimming pool, 24-hour security, and such things.

The disadvantages of shopping for a condo being an investment You have to follow rules that are not yours. Each association features its own rules. And the rules can change. One of the rules that may change is if tenants are permitted or not. If you possess a condo and also the association votes you can forget tenants, whenever your lease expires, you either move around in or sell. Your association might opt to go with the 'no more tenants' rule at a time when selling is not an great option.

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

Yes, you can also make sure you have something to say about decisions and obtain 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 give the same amount regardless of whether you use or not the services (for example, the water bill part of your assessment).