Buying a Condo Being an Investment Property7113835

If you're like most people, you want your financial future being better than your existing, or at least not worse. So, you place money aside and think about ways to allow it to be grow. The options seem endless, but you've selected 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. Within my conversations with folks who've committed to condos, few were mindful of all of them. So here they are.

Features of buying a Peak Residence as an investment property

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

You don't need to worry about roof, stairs, landscaping etc. The association protects them. To get 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 from the complex maintenance crew. That differs from condo association to condo association. And so they charge you because of it, but you don't have to drop the rest and go to your condo because the sink's leaking. Price

Some condos are extremely expensive. However, houses of similar size inside the same neighborhood be more expensive. So, you can purchase an investment property inside a better neighborhood. Also, generally in most areas, there is no such thing like a 1-bedroom house, but you will find 1-bedroom, or even no bedroom, condo units. And, usually, you will find people ready to rent them.

Amenities vary 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, etc 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 can change is whether or not tenants are permitted or not. If you possess a condo and the association votes no more tenants, when your lease comes to an end, you either move in or sell. Your association might opt with the 'no more tenants' rule at a time when selling is not an great option.

Or, worse, they decide to allow too many 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 neglect the difficult, not to mention refinancing it.

Yes, you may earn sure you've got something to say about decisions and obtain 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 regardless of whether you use or otherwise the services (for instance, the water bill part of your assessment).