House buying question (asking for my father)

[UncleWai]

He is interested in paying 300,000 straight up for a townhouse.
Is it the right thing to do in this market period?
At the moment we are renting an apartment for 1300 a month.

 

[conjur]

Friend of mine bought a condo up there a couple of years ago and it was upwards of $250k.

If I was going to drop that much green on a place, I'd be damn sure the place was rather sound-proof so I couldn't my hear neighbors.

As far as timing...heck...mortgage rates are at record lows (4.5% or so on 30-year fixed). Amazingly low.

 

[UncleWai]

That's exactly why I need some advice.
The price is high because of the record low mortgage rate,
but my dad is paying the whole thing up front.
Will a townhouse hold the value if mortgage rate rises?

 

[CPA]

Tough call, but with money so cheap right now, he may want to look into buying the place with just a little down at a very low rate 4.75% on a 15 year note, and invest the rest in some corporate AA bonds paying over 5.5%. Factor in the tax deduction on the interest of the mortgage, and you're making a nice little return.

Then again, paying the thing off and using future income to invest is not a bad idea either.

 

[conjur]

Originally posted by: UncleWai
That's exactly why I need some advice.
The price is high because of the record low mortgage rate,
but my dad is paying the whole thing up front.
Will a townhouse hold the value if mortgage rate rises?

Good ?

Seattle area has some high real-estate. Kept me from moving as a house not as nice as the one I just sold here (2000 sq. ft. and next to a pasture of riding stables) was literally twice as much. I wasn't willing to sacrifice that much

I'd dicker down on that price....if they are inflating it because of low mortgage rates?

Shop around some more.