Investing in Condos

Once you make the decision to invest in real estate, you have to figure out the type of property you want to focus on. There is something to be said for condos.

Condos are the rage in many cities. Nicer than apartments, they are very similar to them. The issue is primarily how property areas are defined and the ability to own individual units. This differs from city to city and state to state, but will stick with the definition since we need one.

When you buy a condo, you might be surprised to learn what you are actually getting. You are essentially getting the interior walls, floor and ceiling of the unit. You might also get a garage. You definitely get a share in the common areas, which typically include things like pools, the general landscaped area, tennis courts and so on.

The advantage of owning a condo as an investment is you have little that you are directly responsible for. The maintenance of the exterior of the unit, surrounding grounds, pool and so on are held by the community. The downside of this, of course, is you have to pay homeowner’s association fees. These fees, however, are usually not too bad, particularly since you are not responsible for mowing the lawn and so on.

A downside to a condo as an investment is the potential profit. Simply put, they tend to appreciate at a slower rate than homes. Before you click away from this article, keep in mind this can also be a benefit. Why? The lower prices on condos also means you can get into them easier because less financial lifting is required on your part. Since real estate is all about leveraging your money, this benefit should not be overlooked.

While condos may be a good investment, condo conversions should be treated warily. A condo conversion is an apartment building that has been converted. So, why should you be nervous about investing in these? The conversion is usually devoted to superficial features such as landscaping and painting. The nuts and bolts of the structure such as plumbing is still older, which means it will need to be replaced at some point. All the condo owners can expect to be hit with a special assessment for this and other work, assessments which can hurt your return on investment.

At the end of the day, condos can be a good real estate investment if you do you homework. They tend to require less financial muscle to get into ownership, but your rate of return will be less than with a home.

View or sell homes for sale by owner at http://www.FSBOAmerica.org

 

Investing in Condos

Once you make the decision to invest in real estate, you have to figure out the type of property you want to focus on. There is something to be said for condos.

Condos are the rage in many cities. Nicer than apartments, they are very similar to them. The issue is primarily how property areas are defined and the ability to own individual units. This differs from city to city and state to state, but will stick with the definition since we need one.

When you buy a condo, you might be surprised to learn what you are actually getting. You are essentially getting the interior walls, floor and ceiling of the unit. You might also get a garage. You definitely get a share in the common areas, which typically include things like pools, the general landscaped area, tennis courts and so on.

The advantage of owning a condo as an investment is you have little that you are directly responsible for. The maintenance of the exterior of the unit, surrounding grounds, pool and so on are held by the community. The downside of this, of course, is you have to pay homeowner’s association fees. These fees, however, are usually not too bad, particularly since you are not responsible for mowing the lawn and so on.

A downside to a condo as an investment is the potential profit. Simply put, they tend to appreciate at a slower rate than homes. Before you click away from this article, keep in mind this can also be a benefit. Why? The lower prices on condos also means you can get into them easier because less financial lifting is required on your part. Since real estate is all about leveraging your money, this benefit should not be overlooked.

While condos may be a good investment, condo conversions should be treated warily. A condo conversion is an apartment building that has been converted. So, why should you be nervous about investing in these? The conversion is usually devoted to superficial features such as landscaping and painting. The nuts and bolts of the structure such as plumbing is still older, which means it will need to be replaced at some point. All the condo owners can expect to be hit with a special assessment for this and other work, assessments which can hurt your return on investment.

At the end of the day, condos can be a good real estate investment if you do you homework. They tend to require less financial muscle to get into ownership, but your rate of return will be less than with a home.

View or sell homes for sale by owner at http://www.FSBOAmerica.org