Investing In Condos – Positives and Negatives
If you’re like most people, you’d like to have more money both now and in the future. And you’ve come to the conclusion that buying a condo and renting it is the easiest way for you to start. Condos are, indeed, the right starting point for many people. But they have drawbacks you need to be aware of. I noticed that many people who consider investing in condos only look at the bright side and, alas, there’s a not so bright side. If you keep both in mind, you fare better.
Advantages of buying a condo as an investment property
1. Maintenance
Maintenance needs 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 such. The association takes care of them. For a price, it’s true, but you don’t have to do them.
Some of the problems inside the unit can also be taken care of by the complex maintenance crew. That varies from condo association to condo association. And they charge you for it, but you don’t have to drop everything else and run to your condo because the sink’s leaking.
2. Price
Condos sell for less than similar size houses. That means you can afford to invest in better neighborhoods than you would if you invested in houses. Besides, how often do you see a 1-bedroom house for sale? Not to mention that there are more people willing to rent an apartment/condo than a house.
3. Amenities
Some condo associations have swimming pools and security 24 hours a day, for just a few dollars more a month. It would cost you an arm and three legs to get them if you had a house. Besides, quite a few tenants are more than happy to pay higher rents to have them.
The disadvantages of buying a condo as an investment
1. Rules
You may have to respect rules you don’t agree with. Rules that can change for the worse despite your disagreeing with the changes. One of the rules that can change is whether tenants are permitted or not. If you own a condo and the association votes no more tenants, when your lease is up, you either move in or sell. The rule might be timed badly, when values are low.
2. Shared decision making
Yes, you could make sure you have something to say about decisions and get yourself elected on the board of directors; still, you are not the only decision maker.
3. Association fees
You have to pay the same amount whether your unit is rented or vacant. In other words, you get to pay the same amount whether you use or not the services (for instance, the water bill portion of your assessment).
4. Special assessments
You might find yourself having to pay special assessments shortly after purchasing your unit though none were even considered when you purchased.
Yes, things can go wrong with a single family investment or an apartment building investment. But there you have more control. Because there you can have a home inspector inspect the whole structure. Because there there’s no board of director’s member whose boyfriend owns a construction company that could use a few thousand dollars.
So condos can be good investments. If you know what you’re getting yourself into.
Has the time come to Google something like condos for sale Chicago?” Lots of people in the market for a condo don’t even know all the questions they need to have answers to in order to avoid buying condo headaches. www.CondosForSaleInChicago.net gives the answer to questions most condo buyers don’t even know they’re supposed to ask to avoid buying themselves headache condos.
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