Apples to oranges.
If you are considering a 2 bdrm condo, compare that against a 2 bdrm apt. Of course the condo will still be more, but not $1.5k more!
-MrManly
Apples to oranges.
If you are considering a 2 bdrm condo, compare that against a 2 bdrm apt. Of course the condo will still be more, but not $1.5k more!
-MrManly
Scarpozzi
Lifer
- Jun 13, 2000
- 26,392
- 1,780
- 126
Remember, with a condo, the location and quality of neighbors always beats the actual condition of the condo.
I wouldn't ever buy a house with a person unless I was already married. If you go in on one before the committment is finalized, you can end up with a nightmare on your hands if the relationship doesn't work out. (just saying I know of 3 relationships that ended up going south and 1 income couldn't pay the mortgage)
Good luck on finding something that is in your price range, I'd probably suggest moving somewhere closer to the desert so you can actually get a decent house for your money. The Real Estate market out there is so ridiculous, I wouldn't consider moving there unless my company bought me a place.
I wouldn't ever buy a house with a person unless I was already married. If you go in on one before the committment is finalized, you can end up with a nightmare on your hands if the relationship doesn't work out. (just saying I know of 3 relationships that ended up going south and 1 income couldn't pay the mortgage)
Good luck on finding something that is in your price range, I'd probably suggest moving somewhere closer to the desert so you can actually get a decent house for your money. The Real Estate market out there is so ridiculous, I wouldn't consider moving there unless my company bought me a place.
Anubis
No Lifer
ColdFusion718
Diamond Member
- Mar 4, 2000
- 3,496
- 9
- 81
Yes she is a hottie, great personality, and we get along very well, so no, finding someone else is not an option. I think she is naive in the finance dept rather than shallow. I told her if she wanted a condo she need to start looking herself and do her own math. Just in one day she turn from being excited to depression. My plan is working. =D
She is out of GRAD SCHOOL in biochemistry, so I would expect we both be making 70k to 80k in a few years. We both save at least 70% of our income after tax (living expense is gas, helping out parents' utility, car maintanence, cell phone bills, DSL, etc). Both drive cars that have 120k to 170k miles.
Yeah, real estates are uber expensive here and I think it will collapse soon. You won't find any fixer upper condo for less than $300k, a house in the ghetto with drive by shooting will cost you $350k, and a nice house with 2000 sq ft and good school district will cost you $800k to 1 million.
Average income is $60k to 65k, thats the part that I don't get.
Moving out of the location is not that easy, I barely found a job that pays this level as the economy and employment here in the silicon valley is still bad, lots of empty business parks and my company just subleased 3 out of 6 building for 50% of what we paid our landlord. All our family and friends are here and I want to at least finish my part time Master (EE in San Jose state).
The market is already maxed out and is already starting to fall here, I hope to wait a year for it to really fall down, and save another $70k this year to take advantage of the fall.
It is risky, but not as risky as buying a property right now.
She is out of GRAD SCHOOL in biochemistry, so I would expect we both be making 70k to 80k in a few years. We both save at least 70% of our income after tax (living expense is gas, helping out parents' utility, car maintanence, cell phone bills, DSL, etc). Both drive cars that have 120k to 170k miles.
Yeah, real estates are uber expensive here and I think it will collapse soon. You won't find any fixer upper condo for less than $300k, a house in the ghetto with drive by shooting will cost you $350k, and a nice house with 2000 sq ft and good school district will cost you $800k to 1 million.
Average income is $60k to 65k, thats the part that I don't get.
Moving out of the location is not that easy, I barely found a job that pays this level as the economy and employment here in the silicon valley is still bad, lots of empty business parks and my company just subleased 3 out of 6 building for 50% of what we paid our landlord. All our family and friends are here and I want to at least finish my part time Master (EE in San Jose state).
The market is already maxed out and is already starting to fall here, I hope to wait a year for it to really fall down, and save another $70k this year to take advantage of the fall.
It is risky, but not as risky as buying a property right now.
rh71
No Lifer
- Aug 28, 2001
- 52,844
- 1,049
- 126
Understandable. As impossible as this may sound, they both need to look for new jobs elsewhere. Move out of the area.
My wife and I made about that much and bought a $330k home in great condition (no fixing at all). Our mortgage was still $2k.
To pay $600k for a run-down house with pests is complete insanity. A good chunk of their income will continually go toward it (as does ours). You both better be entirely happy with your living conditions if you're going to commit to such a property for years to come. So my advice... go somewhere cheaper... where you can at least pay just as much (if you want to) for a much better home.
If you're asking who's right for right now... I'd say townhouse too.
Might I suggest NOT relying on both incomes to afford where you live?
Bad mojo.
If it helps, condos can be tough to sell. All depends on the market/location though.
Bad mojo.
If it helps, condos can be tough to sell. All depends on the market/location though.
If that happened the entire US economy would grind to a halt.
I sincerely doubt deducting interest will go away in the next few hundred years.
Its a trap most couples don't forsee. Then comes the arguing over money, then the fights about goals and direction, then the inevitable divorce.
- Mar 20, 2000
- 102,402
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it used to be that all interest was deductible. most of those loopholes have been closed up with the exceptions of student loan interest and home mortgage interest.
the president's tax panel will probably suggest such an incremental change. and of course if we switch tosome sort of consumption tax you won't be able to deduct interest.
How can there possibly be anything wrong with this comparison? He's talking about where they live now and the condo they're looking at. This is his reality, not an example for the sake of conversation.
Really man, I can't help but think you're parroting something you've heard without giving it any thought. And why generalize? We have a specific example here. He could stick $1500 a month or $18,000 a year in the bank. During the first year with a mortgage that size you'll pay around $5000 to the principal. The commision to sell it will cost you around $20,000. So, based on just payments alone, not appreciation, it would take 4 years to build enough equity to break even on a sale. You could have socked away $72,000 in that time! But what about appreciation you say? Ok, well how much will it appreciate? And how much interest can you make on that $72,000?
It's not as simple as owning>renting.
it's california! no one's leaving anytime soon, the housing prices will still be nuts, and if they leave they'll probably wind up making less!
they do have a huge chunk saved up between the two of them, which is good, compared to all the nutsos out here that do zero down, interest only loans. THOSE are the ones that you have to worry about in a few years.
i'm poor as heck (well to my standards, not by poverty levels) but i can't afford a house anywhere in this state (outside of the crap ass central valley, i'm not living there) but i'm still not leaving. my family lives here, i like living out here, and it's too hard to leave a state you grew up in, plus that i'll take an income hit wherever i go, even if it has lower car insurance, lower cost of living, etc.
no one can afford a decent house, i don't know how people do it. if my parents put their house on the market, they could get 900k easy, no repairs needed, extremely well maintained home in a very nice, quiet neighborhood, good schools, etc.
they do have a huge chunk saved up between the two of them, which is good, compared to all the nutsos out here that do zero down, interest only loans. THOSE are the ones that you have to worry about in a few years.
i'm poor as heck (well to my standards, not by poverty levels) but i can't afford a house anywhere in this state (outside of the crap ass central valley, i'm not living there) but i'm still not leaving. my family lives here, i like living out here, and it's too hard to leave a state you grew up in, plus that i'll take an income hit wherever i go, even if it has lower car insurance, lower cost of living, etc.
no one can afford a decent house, i don't know how people do it. if my parents put their house on the market, they could get 900k easy, no repairs needed, extremely well maintained home in a very nice, quiet neighborhood, good schools, etc.
SarcasticDwarf
Diamond Member
- Jun 8, 2001
- 9,574
- 2
- 76
Living in a condo, I have to say I would rather rent. The reason being is that the advantages to a condo over renting are few. Yes, you get to redo the interior as much as you want, but as soon as you get to your outside walls, you can't touch it.
how does a couple with a combined income of 100K even begin to pay for a 600,000 house.
at 4%, thats 2,864.49 a month (for 600k), not including property taxes.
35,000 a year of your NET income, which is about 70k... gives you 35K for 2 people to live off of in the bay area *before* property taxes.
property taxes will generally be 1% of sale price, or 6K a year
now you have 29K to live off of.
wifey will want a nice car, another 6K, food for 2 another 6k
utils if you have cable/internet 2.5K
gives you about 15K to buy clothes, gasoline, and live ... its possible.
at 4%, thats 2,864.49 a month (for 600k), not including property taxes.
35,000 a year of your NET income, which is about 70k... gives you 35K for 2 people to live off of in the bay area *before* property taxes.
property taxes will generally be 1% of sale price, or 6K a year
now you have 29K to live off of.
wifey will want a nice car, another 6K, food for 2 another 6k
utils if you have cable/internet 2.5K
gives you about 15K to buy clothes, gasoline, and live ... its possible.
mugs
Lifer
- Apr 29, 2003
- 48,920
- 46
- 91
It makes me wonder why people are so reluctant to move out of California and so willing to live IN California. Any time a real estate thread pops up here, the Californians jump in with how much it costs to live in California.
(none of that was directed at you, your post is just what prompted me to say it
)
Sphexi
Diamond Member
- Feb 22, 2005
- 7,280
- 0
- 0
Yes, let's mount debt up to our eyeballs, it's the American way!
People need to learn to live within their means, and looking at 600k condos is NOT within your means. Hell, 600k up here would get you lakeside property, 5bdrm, gorgeous houses. You could buy a few rental properties for that much, plus a house for your own, then make back your monthly payments through rent. I can't even begin to imagine forking over 600k for a simple little condo.
As Unsped pointed out, you'll have very little cash left over for whatever else you want to do, and it sounds like you expect to be living the "high life", so I'd recommend renting for a while, or finding something more reasonably priced.
People need to learn to live within their means, and looking at 600k condos is NOT within your means. Hell, 600k up here would get you lakeside property, 5bdrm, gorgeous houses. You could buy a few rental properties for that much, plus a house for your own, then make back your monthly payments through rent. I can't even begin to imagine forking over 600k for a simple little condo.
As Unsped pointed out, you'll have very little cash left over for whatever else you want to do, and it sounds like you expect to be living the "high life", so I'd recommend renting for a while, or finding something more reasonably priced.
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