Are townhouses and condos a good investment option when considering buying real estate?

Question

What are the advantages v. disadvantages? I live in houston and searching for the best investments to get in right now. Thx

Answer 1

oh definitely...but you should probably find a good realtor to find you the best place for the best terms. this is a really helpful directory: http://www.realestateforsaleintexas.com

good luck ;)

Answer 2

Just about any real estate purchase is a good investment. Townhouses and condos also fit in this category.

Unlike single family houses most condos and townhouses have a few restrictions you should be aware of before you invest in them, though I would not let this be a deterrent, just understand the risk and variables.

In a townhouse or condo there are CC&Rs as well as Association by-laws. Some of these restrict the number of non-owner units that can be purchased. This restriction is normally 10% or less. In other words if you are purchasing a condo or townhouse for investment purposes and there are 20 units in the comlex with the 10% rule in effect that leaves 2 that will be allowed for non-owner or rental property.

The reason for this restriction is that a lot of your major lenders will not refinance or allow purchase money for those complexes that exceed the 10% restrictions. So in the same scenario if a complex had 4 non-owners, someone in the complex that wanted to refinance their unit would find it difficult to do so. Same as a person that wanted to purchase a unit in the complex, they would also find it difficult to get a loan.

So a check of the CC&R.s as well as the by-laws would be important.

The other thing is that there is normally a low tolerance for loud noises and other irregularities. Instead of telling the person in your complex about the noise or other bothersome thing the association will call you to solve the problem.

If the same thing occurred in a single family most likely the police would be called and perhaps you would be notified or maybe not.

Now the financial part is that in addition to the mortgage you also have association dues and fees that must be paid. They can be raised or special assessment fees for a one time big ticketed item could occur. You have to pay your taxes, however your insurance is normally included in your association dues. Maintenance is not normally a problem as the association takes care of that for you.

You normally have to attend the association meetings to insure that they don't enact any surprise new by-laws that would be associated with rentals in your complex. Once a new by-law has been enacted that affects you as a landlord it is too late to get them to change it, so you have to be there.

Now if you find a very good bargin with a good association, reserve funds for emergencies and all other things check out ok, I find that condos and townhouses are excellent investment properties.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 3

yes and no, it really depends on the area, you can t go wrong with buying a houses for investments. you will want to look into the demographics on condos and townhouses. If want help let me know. i can actually show a great investment to get into with real estate contact asap so i can send you more info.

Answer 4

search for and focus on resources in your immediate geographic area. while single family homes are often considered the best investment for a place to live in, real estate info is only as reliable as your local market. whole market generalizations aren't really relevant outside of their fit in the bigger macroeconomic picture. while nationwide average prices are declining or stalling, there are plenty of both undervalued and appreciating areas--many in TX. condo/townhome prices have also seen this run-up and decline/stall in many markets but again, only your local market really matters when you're considering what to buy. call a real estate agent in your area to get the scoop.

Answer 5

Will this be your abode or a condo sources? you're able to desire to choose why you opt to purchase and what you need to do with it. keep it for 5 yrs or much less or make it your abode. a house you would be dwelling in isn't an investment yet is your abode. investment to coach a earnings may be the apartment.