The Pro-Tips To Read Before Buying Condos For Investment

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The Pro-Tips To Read Before Buying Condos For Investment

Investing in condos can be a financially rewarding endeavor when done properly. But, before you begin, it’s important to comprehend the rules and some real-estate terms to make it a profitable business.

Who doesn’t want to earn extra money aside from direct income? Real estate investment has always been a preferred option for money-grubbers.

Whether you are a first-time buyer who wants to invest; or, the one who already has one home but wants to earn money by renting; or, a smart investor who has multiple properties but wants to add one more property to the list.

 

 

Investing in Jade Scape condo can be a smart move, but here are a few things you should consider before you get underway the investment.

Can You Rent Condo?

When the condo association permits rental, whether for a short period or a long time, as an investor, you will need to know about the rental cap.

In simple words, the rental cap is generally a restriction, laid by respective associations, that limit the number of condos to be rented. When you are purchasing for renting purposes, ask the association whether the unit you will own, can be leased or not.

 

Are You Going To Own It For Short Term or Long?

Putting money into condos is a serious responsibility. So, it is imperative you are clear about your plans to utilize and make the maximum benefit from your investment. Renting condos is more beneficial if you own it for the long term.

Long term rental has many benefits like you will earn a consistent income for a long time. Unlike short term renting, here you don’t need to increase rent to earn revenue in a short period.

 

What are Condo Fees and What Does It Cover?

Many condos cover water, garbage, exterior maintenance, security, community centers, sewer, and more and charge extra fees as per their rules. These hidden changes might surprise you if you have not conducted a little research and are a first-time buyer.

Spend your time before investing money by asking some questions like;

For what they are charging?  What is covered in that fee? 

Sometimes, it is hard to get any information before you own the condo. If the condo association refuses to provide the information, then contact the condo managers or agents to acquire the information related to reserve studies, annual budget, special assessment, etc.

Reserve study

Reserve study includes roads, roofs, pools, landscape replacement, or any long term assets that require timely maintenance. It is usually part of the annual budget. Think of an annual budget as saving for the long term assets preservation.

Special Assessment

This is generally a periodic fee to maintain amenities, being an owner, you will have to pay the regular fee to the association.

The information about the reserve and special assessment will give you an idea about the activeness of the condo association.

Are You Going to Appoint a Management Company or Plan to Manage a condo Yourself?

 

Dealing with the tenants is not an easy job; they usually expect a prompt response and service from the owners.  Being an owner, you would have to be available around the clock because it will be your duty to address their problems in a timely.

If you don’t want to manage then you can hire a management company by Jade scape as well, thus, plan your budget accordingly, whether you are going to handle or will leave it on the company’s hand.

 

Is the Building Under Any Lawsuit?

Sometimes, the project comes under litigation; there could be several reasons like any sort of defection in building, then it is nearly impossible to receive bank financing for the investment. So be aware of legal proceedings to avoid any financial loss.

Are Buildings in Under Construction?

Usually, people tend to invest early to acquire the desired units before others get hold of them. But, when you are purchasing condos in the pre-selling phase, you need to analyze the work speed and developers track record too. If they have completed the project on-time before, then you might consider buying the condos in the pre-selling phase.

Final Words

Remember, in order to make yourself financially strong; you need to acquire the knowledge of real estate terms. For more information regarding condos’ investment, you can get in touch with the Jadescape. Unlike the detached home, knowing about condos’ rules is extremely essential to avoid any troubles in the future.

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