Should I stay renting instead of buying a condo?

Question

I could put alot of money towards my 401K if I didn't have to worry about a house. I am SO not the handyman and would not be able to fix it and I understand condos are really hard to sell if I ever need to move. Advice?

Answer 1

Housing prices are plummeting right now, so there is a possibility of getting a good price on a condo now more than ever. The question to ask yourself is if you can afford it. Not just the mortgage but the taxes, homeowners insurance, trash bill, water bill, PMI if you don’t have enough of a down payment and other things that you typically don’t have to pay for in an apartment. The cheapest condos right now, however, are the foreclosures and they are typically in rough shape so not being a handyman will restrict you from those. But the others have come down in cost significantly. The thing to remember is that if the cost is about the same to you then when you own you are at least building equity whereas when renting the money is 100% gone. There are other considerations in the equation though. How long will you be there? You should aim for between at least 3-5 years in the condo in order to make it worth your investment. If for any shorter time I wouldn’t bother. Also, you should consider that condo’s typically don’t gain as much value as single family homes so you may not see quite the return. This market is far from rebounded so it is also possible that you will buy a condo and then find it losses more value and you may eventually sell it for al loss. But in this calculus you can afford to lose a lot of money on it if you are saving all the money you would be throwing away on rent for 3-5 years by building equity in your condo. As an aside, the condo will give you much more freedom to design, paint and do what you want along with pride of ownership that for me would outweigh the cost of repairs. Additionally, buying a newer condo is a good way to avoid costly repairs that come with older properties. As for being hard to sell, as long as you price your condo right, make improvements that make it stand out and generally search for a unique floor plan for the area you should be able to sell.

Answer 2

I have been listening to this financial advisor about getting out of debt and the best ways to allocate my income. I suggest checking him out online or listen to his radio show. He gives advice about at least one situation like yours a show. Hope this helps!

Answer 3

Go for the condo because everything id done for you. Depending on where you are condos can be hard to sell or easy to sell.

Answer 4

Would you rather pay rent and make someone else rich ? You do not need to be a handy man to own a home . It is yours in the long run . Condos are more suited for single persons . But do some research before buying .

Hope this helps

Answer 5

You have a lot of questions.  I suggest talking to a realtor about the market in your area.  Condos are much easier to maintain.  Depending on where you live and market conditions condos may not be difficult to sell.

In terms of rent vs. own.  You have to do an analysis of your financial situation.  Can you afford a mortgage, living expenses, savings (retirement and living), real estate taxes, insurance, utilities and possibly condo assessments versus renting, living expenses, savings and possibly utilities.

Good luck.

Answer 6

You will find the extras that your pay in condo association and special assessments is allot more than the upkeep of a house.  .

Your association dues may or will increase yearly.  I started off paying  $135.00 a month, by the time I sold my place I was paying 285. a month.This does not count those special assessments for projects to keep the place up  and make it look pretty.

Owning a condo, you still have to pay for repairs out of your

own  pocket that is not covered by the association.

Such as, garage door &, opener, water heater and some plumbing leak. Lot of these repairs you will have to fix immediately.