Buying a condo vs renting apt.??

[cpals]

I'm trying to move out of the house, but the area I'm in the prices for housing is ridiculous. In our local newspaper it's even stated that the housing market is pushing out the middle-low income families anymore due to the realty prices.

So I'm trying to decide between renting vs getting a condo. Do condos actually retain/improve their value? Apartments around here are going for around 900-1000 for a 2/1 in a decent area. The local condos are 130,000 - 150,000 and that's getting a pretty small 2/1.

I'm thinking about just renting and hoping that the housing bubble pops... a year or two renting wouldn't kill me. Anyone have this experience before?

Thanks.

 

[boggsie]

Originally posted by: cpals
I'm trying to move out of the house, but the area I'm in the prices for housing is ridiculous. In our local newspaper it's even stated that the housing market is pushing out the middle-low income families anymore due to the realty prices.

So I'm trying to decide between renting vs getting a condo. Do condos actually retain/improve their value? Apartments around here are going for around 900-1000 for a 2/1 in a decent area. The local condos are 130,000 - 150,000 and that's getting a pretty small 2/1.

I'm thinking about just renting and hoping that the housing bubble pops... a year or two renting wouldn't kill me. Anyone have this experience before?

Thanks.

Generally speaking, I woudn't recommend investing in a condo unless you can say, without reservation:
a) you are going to be there more than five years
b) you know that in the time you are going to be there, there won't be new condo construction in the general area
c) you know that the existing condo rules and fees are going to be relatively stable, until at least after you decide to sell.

 

[mugs]

Only buy if you'll be there more than 5 years... renting will work out to be better unless housing prices continue to go up at an extraordinary pace.

I have a spreadsheet somewhere that helps you calculate it all out.

 

[DaTT]

Why rent when you can own? I bought a condo.

 

[bmacd]

Originally posted by: mugs
Only buy if you'll be there more than 5 years... renting will work out to be better unless housing prices continue to go up at an extraordinary pace.

I have a spreadsheet somewhere that helps you calculate it all out.

would you mind sending that to me too? atot at msucycle dot com

Thanks

-=bmacd=-

 

[mrrman]

buying is always better...you build equity and if you dont like it after a while..sell it

 

[iroast]

around central nj (where i live at least), renting is almost as much as getting a mortgage. $1200/month vs, say, $1800/month mortgage

$600 more gets more privacy, more freedom and the potential of turning a profit, or at least breaking even.

 

[cpals]

Originally posted by: iroast
around central nj (where i live at least), renting is almost as much as getting a mortgage. $1200/month vs, say, $1800/month mortgage

$600 more gets more privacy, more freedom and the potential of turning a profit, or at least breaking even.

At least in terms of a condo, I don't see how it gives you more privacy than an apt... they're pretty much the same. In fact, a lot of apartment complexes around here are converting into condos so apt prices keep going up too.

Also, I don't think I would be living in the condo for at least five years. Eventually in 2-3 years I would like to invest in a house.

 

[mugs]

Originally posted by: bmacd

Originally posted by: mugs
Only buy if you'll be there more than 5 years... renting will work out to be better unless housing prices continue to go up at an extraordinary pace.

I have a spreadsheet somewhere that helps you calculate it all out.

would you mind sending that to me too? atot at msucycle dot com

Thanks

-=bmacd=-

Sent

 

[spacejamz]

Originally posted by: mrrman
buying is always better...you build equity and if you dont like it after a while..sell it

as other people have already said, it is only better if you live there long enough to recoup your costs...

if you know you are going to move in 2 or 3 years, how can buying be better??? plz explain...

 

[Albis]

would buying a condo/townhouse and living it in for 4 yrs and selling it be worth the hassle?

i figure i would build credit and hopefully when i sell it, i could breakeven

 

[nyker96]

Monetarywise, if you mortage+maintenance payment isn't too much higher go for the condo. You don't have to pay out your monthly to someone else's pocket.

 

[JoPh]

my brothers monthly payments on his condo is less than what it would cost to rent a similar sized apartment.

 

[z0mb13]

condos are the most liquid assets of the real estate world, when there is a downturn, condos will take the first hit

if you can afford the PITI and HOA fees easily, but not without using an exotic mortgage like option ARMs, etc then you should go for it

 

[cpals]

Originally posted by: z0mb13
condos are the most liquid assets of the real estate world, when there is a downturn, condos will take the first hit

if you can afford the PITI and HOA fees easily, but not without using an exotic mortgage like option ARMs, etc then you should go for it

Maybe I'm a little slow or something, but could you explain 'condos will take the first hit' ? Isn't being the most liquid asset good... meaning you can get rid of them faster?

Also, mugs, mind sending me the file?

Thanks.

 

[cpals]

I can get this from my local bank:

3/1 30 Year Arm for a 150,000 loan @ 6.004% APR with a monthly rate of $817 (P&I)

I was looking at apartments that cost around $930 /month so I'm not sure what extra costs a condo would involve, but I would have around $150 extra a month to play with.

 

[DaveSimmons]

Originally posted by: cpals
I can get this from my local bank:

3/1 30 Year Arm for a 150,000 loan @ 6.004% APR with a monthly rate of $817 (P&I)

I was looking at apartments that cost around $930 /month so I'm not sure what extra costs a condo would involve, but I would have around $150 extra a month to play with.

That doesn't include property tax or the condo association fees, but you would get the mortgage interest deduction on your taxes (after giving up the standard deduction).

Condo association fees can wreck your budget if there is a special assessment for fixing a roof or another major repair.

 

[z0mb13]

Originally posted by: cpals

Originally posted by: z0mb13
condos are the most liquid assets of the real estate world, when there is a downturn, condos will take the first hit

if you can afford the PITI and HOA fees easily, but not without using an exotic mortgage like option ARMs, etc then you should go for it

Maybe I'm a little slow or something, but could you explain 'condos will take the first hit' ? Isn't being the most liquid asset good... meaning you can get rid of them faster?

Also, mugs, mind sending me the file?

Thanks.

well it is easier to sell a condo, and condos are generally cheaper than houses so more speculators dwell in condos. When there is a downturn, these speculators would unload the condos faster than a typical SFR house, thus why the condo prices would adjust faster than a normal house

 

[spacejamz]

well it is easier to sell a condo, and condos are generally cheaper than houses so more speculators dwell in condos. When there is a downturn, these speculators would unload the condos faster than a typical SFR house, thus why the condo prices would adjust faster than a normal house

i thought generally speaking, condos were harder to sell and often sold for less than the purchase price...at least it was that way a few years ago around Dallas...

 

[z0mb13]

Originally posted by: spacejamz

well it is easier to sell a condo, and condos are generally cheaper than houses so more speculators dwell in condos. When there is a downturn, these speculators would unload the condos faster than a typical SFR house, thus why the condo prices would adjust faster than a normal house

i thought generally speaking, condos were harder to sell and often sold for less than the purchase price...at least it was that way a few years ago around Dallas...

what I mean by easier is not that there is a higher demand for condos, but easier to just list it in the market. requires less inspection, maintenance, etc.

 

[cpals]

Originally posted by: spacejamz

well it is easier to sell a condo, and condos are generally cheaper than houses so more speculators dwell in condos. When there is a downturn, these speculators would unload the condos faster than a typical SFR house, thus why the condo prices would adjust faster than a normal house

i thought generally speaking, condos were harder to sell and often sold for less than the purchase price...at least it was that way a few years ago around Dallas...

That's what I was thinking also, because at least in my area there are a ton of signs selling condos and such...

 

[Syringer]

I wish I could buy a condo for under $200k

Under $400k would be great even.

 

[cpals]

Well, it doesn't look too good for a condo... I just stopped by one of the places I was looking at and they're charging $210,000 for a 1/1. And they only have 8 condos left! People are paying these crazy prices. I can't afford this....

 

[cpals]

Originally posted by: Syringer
I wish I could buy a condo for under $200k

Under $400k would be great even.

Yeah, but how much do you make? I'm only making $36,400 a year.

 

[trmiv]

My wife and I recently went through this. Continue paying $1300/month for our tiny one bedroom apartment, or buy a condo. We went as far as contacting an agent, running our credit, and starting to look before deciding to just rent a bigger apartment. Around here, condo's around 700-800sq/ft are about $380,000, and that is for a crappy one. If you want a nice condo around here, you're looking at $400,000-$475,000. Ridiculous for a 800sq/ft place. We decided to just get the bigger apartment for $1600/month (yea, ouch, but that's our reality).