If you are like most people, you would like your financial future being better than your current, or at least not worse. So, you determine money aside and think of ways to make it grow. The options seem endless, but you have decided real estate as the investment arena, and you are considering condos.
Condos have a lot of advantages over single family houses or 2-4 unit buildings. And many disadvantages. In my conversations with individuals who've committed to condos, few were mindful of all of them. So now they are.
Advantages of buying a Peak Residence as a possible investment property
Maintenance has to be done on all properties. Condos, especially condos that are professionally managed, offer some relief 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 in the unit may also be taken care of from the complex maintenance crew. That is different from condo association to condo association. Plus they charge you for it, but you do not have to drop everything else and set you back your condo since the sink's leaking. Price
Some condos are incredibly expensive. However, houses of similar size within the same neighborhood cost more. So, you should buy an investment property in the better neighborhood. Also, generally in most areas, there is no such thing being a 1-bedroom house, but you will find 1-bedroom, or even no bedroom, condo units. And, usually, you will find people willing to rent them.
Amenities differ from condo association to condo association. However it is possible to invest in a condo positioned in a complex that has swimming pool, 24-hour security, etc things.
The disadvantages of shopping for a condo as a possible investment You have to follow rules that aren't yours. Each association features its own rules. And the rules can transform. One of the rules that may change is if tenants are permitted or not. If you possess a condo and the association votes forget about tenants, once your lease expires, you either move in or sell. Your association might decide to go with the 'no more tenants' rule at a time when selling is not an great option.
Or, worse, they choose to allow too many rentals. Too many tenants could make getting a mortgage difficult (FHA yet others do not like condo associations where more than 10% of the units are rented.) helping to make reselling your investment difficult, not to mention refinancing it.
Yes, you can also make sure you have something to say about 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. Put simply, you get to spend the money for same amount regardless of whether you use or not the services (as an example, the water bill part of your assessment).
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