Buying a Condo As a possible Investment Property446297
In case you are like most people, you would like your financial future being better than your present, 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 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 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 which can be professionally managed, offer some relief to condo investors.
You don't need to worry about roof, stairs, landscaping and such. The association manages them. For a price, it's correct, but you don't have to do them. A few of the problems inside the unit can be taken care of by the complex maintenance crew. That differs from condo association to condo association. And so 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 similar size in the same neighborhood cost more. So, you should buy an investment property in a better neighborhood. Also, in most areas, there is no such thing as a 1-bedroom house, but you can find 1-bedroom, or even no bedroom, condo units. And, usually, you can find people willing to rent them.
Amenities differ from condo association to condo association. But it is possible to invest in a condo located in a complex which includes swimming pool, 24-hour security, etc things.
The disadvantages of purchasing a condo as a possible investment You must follow rules which are not yours. Each association has its own rules. And also the rules can transform. One of the rules that may change is whether tenants are permitted or otherwise not. If you possess a condo and also the association votes no more tenants, once your lease expires, you either move around in or sell. Your association might opt with the 'no more tenants' rule at any given time when selling isn't a great option.
Or, worse, they decide to allow way too many rentals. Too many tenants could make getting a mortgage difficult (FHA among others do not like condo associations where more than 10% of the units are rented.) making reselling neglect the difficult, not forgetting refinancing it.
Yes, you can also make sure you've got something to say of decisions and acquire yourself elected on 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 pay the same amount regardless of whether you use or not the services (for example, the water bill portion of your assessment).