Real estate questions...

[DevilsAdvocate]

I have been looking at condos for a while, and I always wanted to walk to work. So, I found a condo right behind my new office building. 2000+ sq. ft., 3 BR for $101,900. Looks like a steal. God, I love Houston real estate prices.

My mortgage on a 30 year note looks like it is going to be $644.08 per month. That is just P&I. What other expenses am I looking at?

I know taxes are going to run about $2,000.00 per year. HOA fees are $135 per mo.

What else am I missing?

 

[Whoozyerdaddy]

Property Tax
Condo Assn Dues
Mortgage Insurance (If you plan on financing more than 80% of the price)
Home owners insurance (If it's not covered in your Condo Dues)


The rest is the usual stuff. Water, heat, phone, electric, etc...

 

[jcuadrado]

that pretty much covers your living expenses...except for electricity, phone, cell phones, internet access, cable or satellite, is water included in your associaton fees?


oh I'm sure you know about your closing costs too..

 

[jcuadrado]

man...2000 sq feet for 100k...thats amazing...in South Florida that's over 200K..I may have to look into relocating..

 

[doze]

$135 a month fees seems kinda high, what does that cover?

 

[DevilsAdvocate]

Originally posted by: jcuadrado
that pretty much covers your living expenses...except for electricity, phone, cell phones, internet access, cable or satellite, is water included in your associaton fees?


oh I'm sure you know about your closing costs too..

How much are closing costs?
Any way to sorta calculate these?
Any ways to save money on closing costs?

 

[DevilsAdvocate]

Originally posted by: doze
$135 a month fees seems kinda high, what does that cover?

It is kinda low for Houston. Includes maintenance on exterior (roof, structure, siding), grounds, pool maintenance, and basic cable television.

Electricity, water, sewer, and DSL are extra

 

[axelfox]

OT: Are you still w/ JAG?

 

[DaveSimmons]

HOA can also hit you with extra bills (very large ones) for major repairs if they aren't doing a good job of building reserves ahead of time.

If possible you might want to ask for the last association financial report to check on reserves, and if possible ask 1-2 current owners how well they think the association is run.

This is one reason I rent and send the difference off to my brokerage instead of buying: not wanting to deal with petty politics and possible mismanagement.

 

[DevilsAdvocate]

Originally posted by: axelfox
OT: Are you still w/ JAG?

Never have been with JAG. You;re thinking of Don Vito.

 

[geckojohn]

The HOA fees usually also pay for the insurance for the building of the condo association.

 

[DevilsAdvocate]

Originally posted by: DaveSimmons
HOA can also hit you with extra bills (very large ones) for major repairs if they aren't doing a good job of building reserves ahead of time.

If possible you might want to ask for the last association financial report to check on reserves, and if possible ask 1-2 current owners how well they think the association is run.

This is one reason I rent and send the difference off to my brokerage instead of buying: not wanting to deal with petty politics and possible mismanagement.

Renting is not an option due to the deluge of Hurricane Katrina evacuees that is causing rental rates to spike. Rental rates have gone from $900 per month where we live up to $1500 to $2000 for a 2 BR apartment, thanks to FEMA's rent subsidy.

 

[JLGatsby]

I'd rather live in Dallas than Houston.

 

[DevilsAdvocate]

Originally posted by: JLGatsby
I'd rather live in Dallas than Houston.

 

[mrrman]

cheap price for a condo of that size

 

[Plasdom]

My monthly rent for a junior bedroom (glorified studio) is $1200. Sighh....gotta love SF

 

[mugs]

Wait - are you the divorce lawyer who was getting divorced from his wife?

Edit: Yeah, you are. Glad to see that's apparantly worked out. Good luck with your continuing marriage.

 

[AUMM]

Originally posted by: jcuadrado
man...2000 sq feet for 100k...thats amazing...in South Florida that's over 200K..I may have to look into relocating..

i just bought a 1,300 sq ft place for 580K

 

[Fenixgoon]

Originally posted by: AUMM

Originally posted by: jcuadrado
man...2000 sq feet for 100k...thats amazing...in South Florida that's over 200K..I may have to look into relocating..

i just bought a 1,300 sq ft place for 580K

holy freaking shat... where do you live?

 

[Reel]

If you are considering a specific condo, get a seller's disclosure and a copy of the condo docs.

Look into condo insurance. I got some "endorsements" with allstate that I think could be very beneficial. The master condo policy covers structural and exterior damages. My policy covers interior and personal property. I also have one endorsement that covers any exterior damage up to the cost of the master policy deductible. Another endorsement is up to $50k of coverage of a loss assessment in court (if a kid drowns in the pool and the condo assn is sued, it pays that much of my share for me). Both of these are cheap enough that if they never get used I am not hurt by the cost but if they get used once, I come out way ahead.

Regarding your closing costs, you may have to pay an additional contribution to the condo association's reserve fund. Mine was 2 months of fees. When I got preapproved for my mortgage, they estimated the closing costs for me. Depending on your timeframe, it may be beneficial for you to give out your financial info to a few lenders and start running up numbers to find out who will give you the best rate and have them give you their good faith estimate form.