Buying a condo as an investment property – Pros and Cons
Tuesday Jan 25th, 2022
If you have set money aside for securing your financial future and are looking for ways to grow it, then you have endless options to choose from. If you have selected real estate as the segment where you wish to invest your money, then you cannot go wrong in choosing to invest in condos.
Condos have numerous advantages over single-family houses. Here are some of the benefits of investing in a condo as an investment property.
Maintenance – Though all properties require maintenance, condos are professionally managed and hence a relief to the investors. You don’t have to take care of the landscaping, stairs, and roof. There is a dedicated association to manage such tasks. For the price you pay, you don’t have to bother about these things. Some complex problems within the unit are also managed by the maintenance crew. Though this varies from one association to another, you don’t have to drop everything you are doing to have the problem fixed.
Price – Some condos are quite expensive. However, a house of similar size in the same neighborhood would cost you more. Also, there is no such thing as a 1-bedroom house. You can rent your condo unit to individuals who are looking for such properties.
Amenities- the amenities provided vary from one condo association to another. However, it is possible to invest in a condo that is present in a well-developed complex that promises you 24-hour security, a parking space, a community center, a swimming pool, a gym, and more.
Disadvantages of buying a condo
Rules – you need to abide by the rules laid down by the association. The rules are subject to change.
Shared decision making - You have your say about things but the final decision would be left to the elected board members. Hence, you are not the only decision-maker when you own a condo unit.
Association fees – You are bound to pay association fees whether your unit is vacant or rented. You will have to pay the fees whether you use the services of the association or not.
Special assessments – Rules can change when you make an investment in a condo unit or an apartment. If there were no special assessments when you purchased the unit and the association decides to introduce new rules six months later, then you have no other choice but to clear the assessments. This does not imply that you have no control over things upon purchasing a condo unit.
Purchasing a condo unit has its pros and cons. If you are looking for an affordable single-family unit, then investing in a condo is the best thing you can do. These units are reasonably priced and come with a lot of special benefits. You cannot neglect the advantages that you are getting by purchasing a condo unit as an investment property for the negligible cons of bearing the association fees and decisions.