is buying a one bedroom apartment a bad idea?

[andylawcc]

not for investment or to rent it out for income, but actually for myself to live in.
the general consensus that i keep on hearing is, while it is cheap to buy, it will take you forever to sell, cuz no one wants to buy a one bedroom apartment.

to me, it just seems like the perfect bachelor, cough, single pad. I rather have the whole place to myself, than rent out an extra room if i have a 2-bdrm instead.

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[Crono]

If you need a place to live it's not a bad idea to only get as much room as you need.

 

[Phoenix86]

See: condo market.

edit: it's a volatile market.

 

[andylawcc]

If you need a place to live it's not a bad idea to only get as much room as you need.

i am currently renting a 180sqft room out of a condo, and used to rent a 500sqft studio. and with the 500sqft-er i really have a lot of space to move things around. I don't think i will run out of space with a one bedroom apartment, which is usually around 600 to 700 sqft.

of course, i have to think about future... but for now, i think i will be solo for a while.

 

[kyrax12]

Are condos really a good idea?

 

[jteef]

Your question depends on so many things.

What is the actual market? Are you in a big city? In the suburbs? What industries are nearby?

Businesses will often buy / rent small apartments / condos for their traveling employees / executives.

How much equity can you build with the mortgage and association fees? Ownership has a lot of financial benefits, but a certain level of risk, too.

I certainly wouldn't overpay for a 1br place. If you can find something respectable under market value, then it might be a good idea

 

[andylawcc]

I certainly wouldn't overpay for a 1br place. If you can find something respectable under market value, then it might be a good idea

you have many question, but i really don't know how to answer them all.
I am in Los Angeles, CA, and i found a few apartment and/or studios in downtown area to my liking. i prefer living in the center location, so my commute to work would be (usually) against traffic. Prices are roughly 170-199k. so, i don't know what's "respectable under market value." But to me, a 2 bedroom will be shooting the price up to 290k easily.

 

[chusteczka]

Often young adults will purchase a condo then move a few years later and rent out the condo instead of selling it. Sometimes, the condominium homeowners association does not allow owners to rent unless there is a minimum level of ownership across the whole complex.

My complex requires 80% owners to be living in their units yet we are at 60% owner live-ins. This means anyone purchasing a unit in my complex will most likely never be able to rent it out, if they move they will be forced to sell.

 

[soulcougher73]

you have many question, but i really don't know how to answer them all.
I am in Los Angeles, CA, and i found a few apartment and/or studios in downtown area to my liking. i prefer living in the center location, so my commute to work would be (usually) against traffic. Prices are roughly 170-199k. so, i don't know what's "respectable under market value." But to me, a 2 bedroom will be shooting the price up to 290k easily.

So glad i dont live in CA anymore. The bolded is more than my 1700sq foot home. I would never buy if i were you. Just rent a 1br somewhere nearby.

 

[boomhower]

Often young adults will purchase a condo then move a few years later and rent out the condo instead of selling it. Sometimes, the condominium homeowners association does not allow owners to rent unless there is a minimum level of ownership across the whole complex.

My complex requires 80% owners to be living in their units yet we are at 60% owner live-ins. This means anyone purchasing a unit in my complex will most likely never be able to rent it out, if they move they will be forced to sell.

Another issue is a lot of lenders require a minimum ownership % for you to get a mortgage at the building. I want to say it's in the neighborhood of 60%.

 

[mmntech]

you have many question, but i really don't know how to answer them all.
I am in Los Angeles, CA, and i found a few apartment and/or studios in downtown area to my liking. i prefer living in the center location, so my commute to work would be (usually) against traffic. Prices are roughly 170-199k. so, i don't know what's "respectable under market value." But to me, a 2 bedroom will be shooting the price up to 290k easily.

LOL. That won't get you much here unless you like waking up to the sound of gunshots.
http://www.royallepage.ca/jumplisti...2&country=CAN&city=Downtown Toronto&view=list

BTW, those ones under $100k are for parking spots. D:

Condos can be a good investment if it's an up and coming area. Town house condos to me are more valuable though as they have more space and some property. It's the fees you have to watch though. Some of those can be as much as a mortgage payment and don't always include heat and hydro.

 

[Chiropteran]

I bought a 1 bedroom condo a year ago. Since I'm pretty stupid, that should be confirmation enough that it's a bad idea.

Really though, look at the numbers. Figure out how much mortgage plus fees plus utilities will be and compare to rent for similar sized options in the same area. Over time, rent tends to go up, while your mortgage will remain the same, so even if the mortgage is a few hundred more per month right now it might be saving you money in the long run if you stay in the area for more than 5 years.

Real key is location though. I bought my condo where I have easy access to DC, which I feel will help it keep it's value. If your condo is out in the suburbs it could drop in value a lot if the market gets worse.

 

[DrPizza]

I bought a 1 bedroom condo a year ago. Since I'm pretty stupid, that should be confirmation enough that it's a bad idea.

Really though, look at the numbers. Figure out how much mortgage plus fees plus utilities will be and compare to rent for similar sized options in the same area. Over time, rent tends to go up, while your mortgage will remain the same, so even if the mortgage is a few hundred more per month right now it might be saving you money in the long run if you stay in the area for more than 5 years.

Real key is location though. I bought my condo where I have easy access to DC, which I feel will help it keep it's value. If your condo is out in the suburbs it could drop in value a lot if the market gets worse.

Not only doesn't the mortgage payment go up, but you only have to make so many mortgage payments, then you're done. If you buy at 20, with a 30 year mortgage, and make extra payments, you might be mortgage free before you're 45 years old. Then, all you have are taxes for. the. rest. of. your. life. But even then, they'll be a hell of a lot cheaper than renting.

 

[Gibsons]

See: condo market.

edit: it's a volatile market.

This, plus where is it? Some markets aren't so bad. Some are turrible.

 

[BurnItDwn]

Don't "buy" unless you plan to live there for a long time.
If you plan on being single the rest of your life and having no kids, then buy it.

Otherwise, nothing wrong with living in a more reasonable sized place vs a huge mansion, but it makes sense to rent if it's "permanent." (by permanent, i mean more or less "super long term")

 

[Scarpozzi]

We can't answer this for you. It's ultimately your decision to buy a place and assume the risks involved. Your best bet in ALL cases of buying is to buy based on location. If there are universities nearby, look at the pros and cons and any other opportunities that might help you sell in the future. Look for possible red flags (flood plains, surrounding industry, crime)

Having said that, I don't personally believe condos or apartments are good investments because their appeal is always subject to how well the other tenants/owners or building owners maintain the surrounding properties. Because it IS an apartment, many of them are subject to maintenance fees that often negate any savings. So it's like, you'd be paying whatever loan you take out plus another amount that often covers the expense of sewer/water, grounds maintenance, pool maintenance...sometimes taxes. This typically offsets the savings unless those fees are low or nonexistant. Read the fine print.

I once looked at a unit that was a mere $50,000 to buy, but had a $500/month fee stuck on the end for maintenance. The buildings were old and many units were vacant as a result of being in between people wanting to spend money to renovate and tyring to offset the extra $500/month when similar apartments could be rented a mile from those units for $800/month. These are in Tennessee from 8 years ago, but the equation is the same. Do the math and see if you're wasting money on loan interest and maintenance fees....if you are, don't buy.

 

[CraigRT]

I bought a 2BDR because it should be easier to sell and even rent if needed in the future.
Right now I like having the 2nd bedroom for a computer room/office area.

 

[Sheep]

I bought a 2BDR because it should be easier to sell and even rent if needed in the future.
Right now I like having the 2nd bedroom for a computer room/office area.

Same here. I use my second BR as an office/guest room with sleeper couch which works brilliantly. Personally I wouldn't consider a 1BR place.

 

[OILFIELDTRASH]

you have many question, but i really don't know how to answer them all.
I am in Los Angeles, CA, and i found a few apartment and/or studios in downtown area to my liking. i prefer living in the center location, so my commute to work would be (usually) against traffic. Prices are roughly 170-199k. so, i don't know what's "respectable under market value." But to me, a 2 bedroom will be shooting the price up to 290k easily.

Wut? According to atot Californian's they are able to rent 1800 sq ft apatments for around 1k.

 

[Red Squirrel]

lol @ big city living. House with yard is where it's at. I can practically see the big dipper from my bedroom window.

 

[lxskllr]

lol @ big city living. House with yard is where it's at. I can practically see the big dipper from my bedroom window.

I really enjoyed little city living. I could literally walk to everything I needed, as well as carry my boat down to the water. My first apartment really had no bedroom at all, and I wouldn't mind having it back. Loved that place.