Buying a Condo As a possible Investment Property9176533
If you're like most people, you want your financial future to be better than your present, or at least not worse. So, you place money aside and consider ways to make it grow. The choices seem endless, but you have decided real estate as the investment arena, and you're simply considering condos.
Condos have several advantages over single family houses or 2-4 unit buildings. And many disadvantages. Within my conversations with people who've invested in condos, few were conscious of all of them. So here they are.
Benefits of buying a Peak Residence as an investment property
Maintenance needs to be done on all properties. Condos, especially condos that are professionally managed, offer some respite to condo investors.
You don't need to worry about roof, stairs, landscaping etc. The association takes care of them. For a price, the simple truth is, but you do not have to do them. Some of the problems in the unit can also be taken care of through the complex maintenance crew. That differs from condo association to condo association. Plus they charge you for it, but you don't need to drop anything else and run to your condo since the sink's leaking. Price
Some condos are very expensive. However, houses of similar size inside the same neighborhood be more expensive. So, you should buy an investment property in a better neighborhood. Also, in most areas, there isn't any such thing as a 1-bedroom house, but you can find 1-bedroom, or even no bedroom, condo units. And, usually, you will find people willing to rent them.
Amenities vary from condo association to condo association. But it's possible to buy condo located in a complex which has swimming pool, 24-hour security, and the like things.
The disadvantages of purchasing 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 alter. One of the rules that may change is if tenants are permitted or otherwise. If you own a condo and the association votes forget about tenants, when 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 a great option.
Or, worse, they choose to allow way too many rentals. Way too many tenants can make getting a mortgage difficult (FHA and others do not like condo associations where a lot more than 10% of the units are rented.) making reselling ignore the difficult, as well as refinancing it.
Yes, you can also make sure you've something to say on decisions and get yourself elected about 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 give the same amount whether you use or not the services (for instance, the water bill portion of your assessment).