Buying a Condo As an Investment Property5309251
In case you are like most people, you want your financial future to be better than your present, or at least not worse. So, you determine money aside and think about ways to allow it to be grow. The options seem endless, but you have decided real estate since your investment arena, and you are considering condos.
Condos have a lot of advantages over single family houses or 2-4 unit buildings. And lots of disadvantages. Within my conversations with people who've invested in condos, few were aware of all of them. So here they are.
Advantages of buying a Peak Residence Showflat as an investment property
Maintenance must be done on all properties. Condos, especially condos which are professionally managed, offer relief for a time to condo investors.
You don't have to worry about roof, stairs, landscaping and the like. The association manages them. For any price, it's true, but you don't need to do them. A few 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. Plus they charge you because of it, but you don't have to drop the rest and set you back your condo since the sink's leaking. Price
Some condos are incredibly expensive. However, houses of similar size in the same neighborhood be more expensive. So, you should buy an investment property in a better neighborhood. Also, in many areas, there isn't any such thing like a 1-bedroom house, but there are 1-bedroom, or even no bedroom, condo units. And, usually, you can find people prepared to rent them.
Amenities vary from condo association to condo association. But it is possible to purchase a condo situated in a complex which has swimming pool, 24-hour security, etc things.
The disadvantages of purchasing a condo as an investment You need to follow rules that aren't yours. Each association possesses its own rules. And the rules can transform. One of the rules that can change is if tenants are permitted or otherwise not. If you possess a condo and also the association votes you can forget tenants, whenever your lease is up, 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 opt to allow too many rentals. Too many tenants will make getting a mortgage difficult (FHA among others do not like condo associations where a lot more than 10% of the units are rented.) helping to make reselling neglect the difficult, as well as refinancing it.
Yes, you could make sure you have something to say on decisions and acquire yourself elected on the board of directors; still, you aren't the only decision maker.
You have to pay the same amount whether your unit is rented or vacant. Quite simply, you get to give the same amount whether you use or not the services (as an example, the water bill portion of your assessment).