Buying a Condo Being an Investment Property6047035

If you're like most people, you would like your financial future to be better than your existing, or at least not worse. So, you determine money aside and think about ways to allow it to be grow. Your options seem endless, but you have selected real estate as the 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 committed to condos, few were mindful of all of them. So here they are.

Benefits of buying a Peak Residence Showflat being an investment property

Maintenance must be done on all properties. Condos, especially condos that are professionally managed, offer some relief to condo investors.

You don't have to worry about roof, stairs, landscaping etc. The association manages them. For a price, it's correct, but you do not have to do them. A number of the problems inside the unit can also be taken care of through the complex maintenance crew. That varies from condo association to condo association. And they charge you because of it, but you do not have to drop everything else and set you back your condo as the sink's leaking. Price

Some condos are very expensive. However, houses of comparable size in the same neighborhood are more expensive. So, you should buy an investment property inside a better neighborhood. Also, in many areas, there isn't any such thing like a 1-bedroom house, but there are 1-bedroom, or even no bedroom, condo units. And, usually, you can find people willing 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 buying a condo as a possible investment You need to follow rules which are not yours. Each association has its own rules. As well as the rules can change. One of the rules that will change is if tenants are permitted or otherwise not. If you own a condo as well as the association votes forget about tenants, whenever your lease comes to an end, you either move around in or sell. Your association might decide to go with the 'no more tenants' rule at the same time when selling is not an great option.

Or, worse, they choose to allow a lot of rentals. Too many tenants can make getting a mortgage difficult (FHA yet others do not like condo associations where more than 10% of the units are rented.) which makes reselling your investment difficult, not to mention refinancing it.

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

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