Buy or rent?

[Nutdotnet]

I'm graduating in May. I have GOOD credit, most of my CC debt is gone, but I do have a heft chunk in student loan debt. No car loan though (at least on my credit report).

I've been thinking, especially with Anchorage's market of continually rising house prices of buying a place instead of renting. I already have a stable roommate that I can rent a room to.

That being said, I was thinking of getting a condo. Although I just read that a condo isn't the wisest thing to purchase. Any comments? Suggestions?

 

[GTaudiophile]

Buy = invest in realestate.

 

[AMDZen]

Buy of course.

 

[Accipiter22]

renting is just tossing your money away, even if you buy and then move you get the money ack at least

 

[Yax]

Just buy. Everyone's doing it.

 

[DaTT]

I bought a condo.....why is it not a smart thing to do? You don't have to do anything.

 

[artikk]

Originally posted by: Accipiter22
renting is just tossing your money away, even if you buy and then move you get the money ack at least

yes buying is the sensible thing to do. Once you have saved enough money to buy a house, don't wait. All the time spent paying for rent could have been going towards paying the mortgage and owning the house after completing the morgage payments.

 

[SuperTool]

Depends how much the rent is compared to what you would pay for mortgage accounting for property taxes and tax deductions.
My guess is in Alaska, it probably makes sense to buy. In SF bay area, housing prices are through the roof, but rents have gone down significantly since 2001. So I am renting.
my 1 br apartment would probably be 300K + as a condo, which would mean $1500+ per month payment when all is said and done. I am renting it for $880/month.

 

[FrustratedUser]

Originally posted by: SuperTool
Depends how much the rent is compared to what you would pay for mortgage accounting for property taxes and tax deductions.
My guess is in Alaska, it probably makes sense to buy. In SF bay area, housing prices are through the roof, but rents have gone down significantly since 2001. So I am renting.
my 1 br apartment would probably be 300K + as a condo, which would mean $1500+ per month payment when all is said and done. I am renting it for $880/month.

True.
As of now I'm sharing a house with 3 friends and it makes it possible to put away $1500/month for a future house.

 

[Rumpltzer]

In SoCal, a townhouse or condo is gonna be like $350K. Coming up with a 20% down payment is $70K. Once you come up with that, it's like $2500/month of mortgage and taxes.

I'm a single-income guy. I have a good, stable job and I get paid well. Even if I collect $70K for a down-payment, I'm not sure I have $2500 a month to put into a house.

I rent for now because I have to.

 

[SuperTool]

I saw on TV show here that a 1br house in Marin sold for $1M.

 

[Cha0s]

rent

 

[shopbruin]

Originally posted by: DaTT
I bought a condo.....why is it not a smart thing to do? You don't have to do anything.

if and when the housing market cools off, condo prices will plummet first.

 

[NoReserve]

Originally posted by: SuperTool
Depends how much the rent is compared to what you would pay for mortgage accounting for property taxes and tax deductions.
My guess is in Alaska, it probably makes sense to buy. In SF bay area, housing prices are through the roof, but rents have gone down significantly since 2001. So I am renting.
my 1 br apartment would probably be 300K + as a condo, which would mean $1500+ per month payment when all is said and done. I am renting it for $880/month.

Makes sense. I recently read a financial planning book that said basically the same thing. It all depends what makes sense financially for you personally in the region you are living in.

 

[gigapet]

Originally posted by: Rumpltzer
In SoCal, a townhouse or condo is gonna be like $350K. Coming up with a 20% down payment is $70K. Once you come up with that, it's like $2500/month of mortgage and taxes.

I'm a single-income guy. I have a good, stable job and I get paid well. Even if I collect $70K for a down-payment, I'm not sure I have $2500 a month to put into a house.

I rent for now because I have to.

my mom is a mortgage broker. they have programs for first time home buyers wher eyou can just put 2% down

 

[SuperTool]

There is a bubble mentality in the market here. People say things like "Housing is so overpriced in this area," and "It's only going to keep going up" oftentimes in the same sentence.
Well, if it's already overpriced, why do you assume it's just going to keep going up? Reminds me of the dotcom bubble. People aren't going to pay more for a house than they earn, and if the mortgage payment already takes up a huge portion of most homeowners' incomes in the area, where is this growth going to come from. And when interest rates go up, the payment to value ratio is going to grow, so unless people start earning more money to afford the bigger payments, the values will have to come down.

 

[mchammer187]

condos around here are a huge ripoff

250 K for a trashy 2 BR or a decent 1 BR

on top of that a $300-$500 condo fee every month is pure BS

<------ saving for a townhouse hopefully they won't go up too much in value or i'll never be able to afford a house

 

[FrustratedUser]

I hope the marked bombs just around May next year.

 

[Juno]

Buy, no questions asked.

 

[SuperTool]

I am going to buy when others think it's crazy to, not when others think it's crazy not to.
Right now, people are paying prices based on the assumption that prices will keep going up. So they don't really care how much it is as long as they can afford the payment, because they assume they are going to make money. To me, it's a worthless assumption, and I am not willing to pay hundreds of thousands for it.

 

[nageov3t]

if you buy, you're kinda tying yourself down. what if a great job opportunity comes up on the other side of the country?

you're young, stay mobile

 

[z0mb13]

Originally posted by: loki8481
if you buy, you're kinda tying yourself down. what if a great job opportunity comes up on the other side of the country?

you're young, stay mobile

 

[Jumpem]

Buy if you are familiar with the area.

I got a job in an area I am not familiar with so I am renting. When I find a nice area, and a ~1500sq.ft. house for $125k or so I'll buy.

 

[PingSpike]

Originally posted by: SuperTool
I am going to buy when others think it's crazy to, not when others think it's crazy not to.
Right now, people are paying prices based on the assumption that prices will keep going up. So they don't really care how much it is as long as they can afford the payment, because they assume they are going to make money. To me, it's a worthless assumption, and I am not willing to pay hundreds of thousands for it.

I sort of think along the same lines as you.

But ultimately, its a nonissue. I cannot afford to purchase a home now, therefore I simply will not be doing it. I'm not going to put myself two inches from fvcked on the whim that "prices will keep going up!" Even if they do keep going up, I am not going to put myself into that kind of situation financially. If they keep going up, maybe I'll never be able to afford a house (unlikely) but hey, thems the breaks.

 

[deejayshakur]

<-- sf bay area, graduated 2004, working for 1 year, starting medical school in august. of course i'd like to buy, but i think that's pretty impossible without outside help. is it smart to take out a loan for a condo/townhouse on top of my student loans (~$150k in 4 years)?