Buying a Condo Being an Investment Property1367879
In case you are like most people, you need your financial future to be better than your current, or at least not worse. So, you determine money aside and think about ways to make it grow. The choices seem endless, but you have selected real estate since your investment arena, and you are considering condos.
Condos have several advantages over single family houses or 2-4 unit buildings. And lots of disadvantages. Within my conversations with individuals who've invested in condos, few were conscious of all of them. Here they are.
Benefits of buying a Peak Residence Showflat as an investment property
Maintenance needs to be done on all properties. Condos, especially condos which can be professionally managed, offer some relief to condo investors.
You don't have to worry about roof, stairs, landscaping etc. The association protects them. To get a price, it's correct, but you don't have to do them. A few of the problems within 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 everything else and run to your condo as the sink's leaking. Price
Some condos are extremely expensive. However, houses of similar size in the same neighborhood cost more. So, you can purchase an investment property in a better neighborhood. Also, in many areas, there's no such thing like a 1-bedroom house, but you can find 1-bedroom, or even no bedroom, condo units. And, usually, you will find people ready to rent them.
Amenities vary from condo association to condo association. However it is possible to purchase a condo located in a complex that has swimming pool, 24-hour security, etc things.
The disadvantages of shopping for a condo being an investment You need to follow rules which are not yours. Each association features its own rules. As well as the rules can transform. One of the rules that can change is whether or not tenants are permitted or otherwise not. If you own a condo and the association votes you can forget tenants, when your lease is up, you either move around in or sell. Your association might opt to go with the 'no more tenants' rule at a time when selling isn't a great option.
Or, worse, they opt to allow a lot of rentals. Way too many tenants can make getting a mortgage difficult (FHA among others do not like condo associations where more than 10% of the units are rented.) making reselling ignore the difficult, not forgetting refinancing it.
Yes, you may earn sure you've something to say about decisions and obtain yourself elected about the board of directors; still, you are not the only decision maker.
You have to pay the same amount whether your unit is rented or vacant. Put simply, you get to pay the same amount whether you use or otherwise the services (for instance, the water bill portion of your assessment).