Many people throughout Florida live in condominiums, and some may live in a real estate co-op. Both condominiums and co-ops give individuals and even small businesses a chance to enjoy some of the benefits of ownership, including equity, while still getting some of the privileges of renting.
Basically, in a condominium, an individual owns a certain divided off part of a larger property but has the right to use common areas, such as pools and tennis courts as well as garden areas and parks. The condo owner has to contribute to the upkeep of the common areas.
A co-op is only different in that the residents themselves collectively own the common areas instead of a third-party property company or individual landlord.
Condominiums present opportunities for real estate investors
Just as they do for people looking to own property without incurring much of the expense of doing so, condominiums also present financial opportunities for real estate investors.
Particularly in times when mortgage interest rates are low, native Floridians and people who are planning to retire to or simply re-locate to this state may show more interest in home ownership.
An investor may wish to consider developing a new condominium in the right market conditions. Also, they could consider converting a building full of traditional rental units into a condominium in which people own rather than rent.
However, a person interested in doing this will need to be well aware of the laws and regulations that could apply to their project. Condominiums are legally complicated organizations to set up, and legal issues may arise once the operation gets off the ground. Making a mistake at any stage could cause serious financial strain and turn an investment into a bad deal.