Buying a Condo Being an Investment Property7960786

If you are like most people, you would like your financial future being better than your existing, or at least not worse. So, you set money aside and consider ways to ensure it is grow. The options seem endless, but you've selected real estate as your investment arena, and you're simply considering condos.

Condos have a lot of advantages over single family houses or 2-4 unit buildings. And many disadvantages. Within my conversations with people who've dedicated to condos, few were aware of all of them. 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 some relief to condo investors.

You don't need to worry about roof, stairs, landscaping and such. The association protects them. For any price, it's true, but you do not have to do them. Some of the problems inside the unit can also be taken care of through the complex maintenance crew. That differs from condo association to condo association. And so they charge you for this, but you do not have to drop anything else and set you back your condo because the sink's leaking. Price

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

Amenities differ from condo association to condo association. But it's possible to purchase a 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 that are not yours. Each association features its own rules. As well as the rules can alter. One of the rules that can change is whether tenants are permitted or otherwise not. If you own a condo as well as the association votes you can forget tenants, whenever your lease is up, you either relocate or sell. Your association might opt to go with the 'no more tenants' rule at any given time when selling isn't a great option.

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

Yes, you could make sure you have something to say on decisions and obtain yourself elected about the board of directors; still, you're 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 give the same amount whether you use or otherwise not the services (for example, the water bill percentage of your assessment).