Buying a Condo As a possible Investment Property3983423
If you are like most people, you want your financial future being better than your present, or at least not worse. So, you determine money aside and think about ways to ensure it is grow. Your options seem endless, but you have decided real estate since your investment arena, and you're considering condos.
Condos have a lot of advantages over single family houses or 2-4 unit buildings. And several disadvantages. Within my conversations with folks who've dedicated to condos, few were conscious of all of them. Here they are.
Benefits of buying a Peak Residence Showflat as a possible investment property
Maintenance has to be done on all properties. Condos, especially condos which can be professionally managed, offer relief for a time to condo investors.
It's not necessary to worry about roof, stairs, landscaping etc. The association takes care of them. For a price, it's correct, but you do not have to do them. A few of the problems within the unit can also be taken care of by the complex maintenance crew. That differs from condo association to condo association. And they charge you for this, but you don't have to drop anything else and go to your condo because the sink's leaking. Price
Some condos are very expensive. However, houses of comparable size in the same neighborhood be more expensive. So, you can purchase an investment property inside a better neighborhood. Also, in most areas, there is no such thing like a 1-bedroom house, but there are 1-bedroom, or even no bedroom, condo units. And, usually, there are people ready to rent them.
Amenities vary from condo association to condo association. But it is possible to invest in a condo positioned in a complex which has swimming pool, 24-hour security, and the like things.
The disadvantages of shopping for 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 change. One of the rules that will change is whether tenants are permitted or not. If you possess a condo and the association votes forget about tenants, once your lease expires, you either relocate or sell. Your association might opt with the 'no more tenants' rule at a time when selling isn't 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 a lot more than 10% of the units are rented.) which makes reselling your investment difficult, not forgetting refinancing it.
Yes, you can also make sure you've something to say about decisions and get yourself elected about the board of directors; still, you aren't the only decision maker.
You spend the same amount whether your unit is rented or vacant. Quite simply, 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).