Buying a condo vs renting apt.??

[Budmantom]

Originally posted by: cpals

Originally posted by: Budmantom
If you plan on staying in the area over 3 years buy if not rent.


Tom

I do plan on staying, but after reviewing a few of the condo places around here, I do not think I can even afford a condo. Another guy who is renting currently is in the same position as I am and is looking for a roomate because he can't afford to get the condo by himself.

Sucks really...

I was in your shoes 5 years ago, I was making under $30k and I bought a 3/2 condo for $65k, 18months later I bought a house for $110k and rented out the condo, 18 months later I bought another house with my wife for $160k a month later I sold the 1st house and made $30k that I applied towards the condo.

Now we owe $7,300 on the condo and our house has appreciated $100k in just over a year(condo $55k in 5 years). Little bit of preparation and a bit of luck.

Tom

 

[Budmantom]

A thought of saving for a couple of years to buy a house.

If your having a hard time now affording a condo I'm sure the houses are way more expensive and chances are they will keep on appreciating (not at the rate they have been for the last couple of years), houses appreciate faster than condos and I feel that interest rates will keep rising so even if the prices take a slight dip you will still end up paying more per month.



Tom

 

[kranky]

Originally posted by: boggsie

Originally posted by: bob4432
i would look at the trends in your area. i am in phx az and last year houses went up an average of 48.5% and condos went up an average of 50.5%. in '03 my wife and i bought a condo in a good neighborhood for $125K and now it is worth ~$280-300K, so there is some equity nearly built in, and we are paying about the same as we were in a apt including the hoa fees but not including the tax right off, so for us it was a no brainer, just wish i would have bought another one in our complex....

This is a perfect reason to get in touch with the board of realtors. If you are in the Phoenix/Scottsdale area, prices are skyrocketing and will only go higher in the next 5 years.

I've stayed out of this thread waiting to see if ANYONE would comment about the recent downturn in the housing market. Hasn't anyone noticed that the "skyrocketing" markets are now looking a lot less appealing? ESPECIALLY Phoenix. There are 3x more homes for sale there now than a year ago. The speculators are bailing out.

I just read a story on azcentral.com about a couple who put their home up for sale in November, have already cut the price twice, and still no buyers. Six months ago, the place would have sold instantly.

I laughed when I read a quote from the head of the multilist service there saying, "We are returning to a more normal market than we have had over the past year or so." In real estate-speak, that means he's crapping his pants. The party is over in Phoenix, SoCal, Sacremento, DC, Boston and other places. Listings are way up, prices are dropping. Search the web for yourself.

Asking a real estate agent if it's a good time to buy a house is like asking the barber if you need a haircut. OF COURSE they are going to say buy now. If you don't buy now, they don't make any money.

In 2007 the number of foreclosed properties is going to be astronomical. All the buyers who got no-doc, interest-only, adjustable loans because they really couldn't afford it anyway will get socked with giant increases in their mortgages with rates going up.

In California, only 14% of the population can afford to own a home. Does anyone seriously think that is a sustainable number? 60% of the mortgages in CA last year were "stated income" loans - meaning you could claim anything you wanted as income in order to qualify for the mortgage. Many of those people had a ridiculous plan: lie about their income to get the mortgage, hope to survive the payments for a year, then sell when the price goes up another 25%. Now that prices quit going up, but the payments haven't, those people haven't a prayer of not defaulting.

You think prices are dropping now, just wait until that crapstorm hits.

 

[Budmantom]

Originally posted by: kranky

Originally posted by: boggsie

Originally posted by: bob4432
i would look at the trends in your area. i am in phx az and last year houses went up an average of 48.5% and condos went up an average of 50.5%. in '03 my wife and i bought a condo in a good neighborhood for $125K and now it is worth ~$280-300K, so there is some equity nearly built in, and we are paying about the same as we were in a apt including the hoa fees but not including the tax right off, so for us it was a no brainer, just wish i would have bought another one in our complex....

This is a perfect reason to get in touch with the board of realtors. If you are in the Phoenix/Scottsdale area, prices are skyrocketing and will only go higher in the next 5 years.

I've stayed out of this thread waiting to see if ANYONE would comment about the recent downturn in the housing market. Hasn't anyone noticed that the "skyrocketing" markets are now looking a lot less appealing? ESPECIALLY Phoenix. There are 3x more homes for sale there now than a year ago. The speculators are bailing out.

I just read a story on azcentral.com about a couple who put their home up for sale in November, have already cut the price twice, and still no buyers. Six months ago, the place would have sold instantly.

I laughed when I read a quote from the head of the multilist service there saying, "We are returning to a more normal market than we have had over the past year or so." In real estate-speak, that means he's crapping his pants. The party is over in Phoenix, SoCal, Sacremento, DC, Boston and other places. Listings are way up, prices are dropping. Search the web for yourself.

Asking a real estate agent if it's a good time to buy a house is like asking the barber if you need a haircut. OF COURSE they are going to say buy now. If you don't buy now, they don't make any money.

In 2007 the number of foreclosed properties is going to be astronomical. All the buyers who got no-doc, interest-only, adjustable loans because they really couldn't afford it anyway will get socked with giant increases in their mortgages with rates going up.

In California, only 14% of the population can afford to own a home. Does anyone seriously think that is a sustainable number? 60% of the mortgages in CA last year were "stated income" loans - meaning you could claim anything you wanted as income in order to qualify for the mortgage. Many of those people had a ridiculous plan: lie about their income to get the mortgage, hope to survive the payments for a year, then sell when the price goes up another 25%. Now that prices quit going up, but the payments haven't, those people haven't a prayer of not defaulting.

You think prices are dropping now, just wait until that crapstorm hits.

Good points but November through February are generally the slowest times of the year and interest rates are still very low. Right now you can buy a house for $250k @ 6% and pay $1500 + T&I but if interest rates go up to 8% that same $1500 will only buy you a $205k house.

If I had cash I would wait but if I had to finance (a house to live in) I would buy now.

Tom

 

[kranky]

I'm all for homeownership. But people have to do their homework. Asking the real estate agent for advice is not homework. The agent has one motivation - get you to buy a home now.

I agree that with rates rising, fixed loans look good at the moment. But along with that, people need to make sure they are not overpaying. If it's a buyer's market, you have to bargain hard.

There are so many condos empty in Florida it's not funny. I read a story about a guy who went to check out a condo in a 24-unit building there one evening - not a single unit had any lights on. Apparently the entire building was vacant.

 

[cpals]

Originally posted by: kranky
I'm all for homeownership. But people have to do their homework. Asking the real estate agent for advice is not homework. The agent has one motivation - get you to buy a home now.

I agree that with rates rising, fixed loans look good at the moment. But along with that, people need to make sure they are not overpaying. If it's a buyer's market, you have to bargain hard.

There are so many condos empty in Florida it's not funny. I read a story about a guy who went to check out a condo in a 24-unit building there one evening - not a single unit had any lights on. Apparently the entire building was vacant.

I'm not sure where in Florida that was, but where I live most of the condo places I've looked at are either sold or close to selling out. And the prices are ridiculous (for this area).

 

[kranky]

My friend from Port Charlotte told me this in relation to the the downturn in housing prices:

The fact is that investors are OUT of the Florida market for the most part now. End users are finding it difficult to qualify to buy houses at these levels not to mention affording them. There are almost 5,000 houses for sale right now in Charlotte County. That's a huge amount of houses for sale. As if everybody's trying to hit the exit doors at the same time.

And when the houses hit 300 G's and higher, it starts to become obvious how limited of a customer base that exists.

Wait, it's just starting.

 

[bob4432]

in my area condos are on the market for less than 2wks at still high prices. and if the sh!t hits the fan, i will try to pick up a couple when they are nice and cheap and in foreclosure due to the reasons kranky listed

 

[Glavinsolo]

Yeah, for the most part more than half of the apt. complexes are going condo. They kind of waited a bit too long to do this. The owners were trying to capitalize on the bubble of the housing economy. They knew if they sold them now that they would be making the most out of the sale at that time. However, now all the apt. complexes who stayed as apartments are asking $200 more per apt. If you are going to buy and invest, wait for the time being, a visible decline is underway as many people have already stated.

 

[kranky]

Might find this interesting... things sellers do to maintain a high sales price while giving kickbacks to the buyers.

 

[MrManly]

In 2000, I purchased a 2/2 condo in San Diego. I sold it just over 2 years later and made about 100k. I would never have been able to afford a house if I had not started with the condo.

-MrManly

 

[hytek369]

save for house