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07/22/2004 09:49:25 AM · #1 |
In my area : 2 bedroom condo 1 bath 136.000 (28 years old)
Mortgage +Tax+ association fee 1150 $/month
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To rent same unit $800/month
Who is crazy to buy now and pay extra 350 $ a month?
It looks like a crash is coming ! |
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07/22/2004 10:00:48 AM · #2 |
The mortgage payment depends on the amount of the downpayment you apply. The amount they quote for a mortgage payment is most likely with the bare minimum downpayment. Putting more of a downpayment can reduce your payments significantly.
Rental money does not build equity, mortgage payments do, small amount at first, larger amount as more of the loan is paid off.
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07/22/2004 10:15:45 AM · #3 |
man that seems like a lot, we have been looking at homes around the $150-$180K range and the mortgage is under what you stated, of course we were factoring in a BIG HUGE down payment from the sale of Shannons condo.
dont forget home owners or asocitation fees for Condo's cover water, cable tv and a few other items you may not get if you rent, so if you rent some of those things will be extra money on top of your rent.
James
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07/22/2004 10:17:42 AM · #4 |
Originally posted by cpanaioti:
The mortgage payment depends on the amount of the downpayment you apply. The amount they quote for a mortgage payment is most likely with the bare minimum downpayment. Putting more of a downpayment can reduce your payments significantly.
Rental money does not build equity, mortgage payments do, small amount at first, larger amount as more of the loan is paid off. |
I'm talking about minimum down first time buyer ... |
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07/22/2004 10:20:58 AM · #5 |
Me, personally, I would recommend not going with the bare minimum as you may end up house rich and cash poor. However, your situation may not allow you to put down more.
Even with my first house I put down more than the bare minimum, but that's just me.
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07/22/2004 10:59:37 AM · #6 |
If you think those #'s are high, don't ever move to NY!
Rental on a 2 bdroom apt would be $1300 a month in a so so neighborhood.
To buy...couldn't find a 2 bedroom townhouse listing, but a 3 bedroom is listed for $299K
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07/22/2004 11:30:20 AM · #7 |
I've got one for you that'll blow all that out of the water (if you dont mind moving to Georgia, that is). :-) We've got our house on the market now, 3br/2 1/2bath about 1700 sqft. on about 3/4 acre, fenced yard on a cul-de-sac in a nice pool/tennis subdivision. A steal at only $149,900!! Let the offers begin!!!! ;-P
And the one we just bought is in golf course/conutry club community on a golf course lot with a view of 2, count 'em, 2 greens. 4br/2 1/2bath on a full (almost finished) basement for $203,000.
So come enjoy the peaches and boiled peanuts! |
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07/22/2004 11:39:55 AM · #8 |
[quote=jenesis
And the one we just bought is in golf course/conutry club community on a golf course lot with a view of 2, count 'em, 2 greens. 4br/2 1/2bath on a full (almost finished) basement for $203,000.
So come enjoy the peaches and boiled peanuts! [/quote]
I am so jealous! Golf and photography are my two favorites! Can Auntie Marjo come visit? |
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07/22/2004 11:42:13 AM · #9 |
Originally posted by Marjo:
I am so jealous! Golf and photography are my two favorites! Can Auntie Marjo come visit? |
Sure, but only if I can come and hang out with the horses! ;-P |
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07/22/2004 11:43:46 AM · #10 |
| Come on up. The stalls need cleaned...again! lol |
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07/22/2004 11:57:49 AM · #11 |
Pitsaman, of the $1150 you pay every month, at least $1000 would be tax deductable. You rent isn't. Depending on where you income level is, you may very well save as much as $200 a month in taxes.
Now compare rent at $800 vs buy at $950.
Besides, when you buy, you have more freedoms. You can modify the apartment to your suiting. A best yet, if and when you move, you could rent out the apartment and have a perpetual income. Ten years from now, you could probably get $1200/month in rent yet still be paying $1500 for the mortgage. At that point, you are rapidly building equity and making a profit on top of that.
Note: The above numbers are little more that SWAGs. Take some time, think it out, and decide what those numbers would be in your situtation. Chances are, they would fall along those lines. Also keep in mind other factors such as insurance and cost of repairs.
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07/22/2004 11:58:33 AM · #12 |
Originally posted by jenesis:
And the one we just bought is in golf course/conutry club community on a golf course lot with a view of 2, count 'em, 2 greens. 4br/2 1/2bath on a full (almost finished) basement for $203,000.
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Lucky you!
Just try to find anything similar here in Europe. In my hometown (south Spain) something like that will cost three or four times that figure! The condo I live in (5br/3bath) will cost you easily 450.000EUR. And take into account those are european size houses (i.e., small ones for american standards).
I'ts said we live into an "inmobiliary bubble" here, that it has to explode soon, and we all be f***ed off paying mortgages, blah, blah... the fact is the bubble's here since 20 years ago, and it not only doesn't explode, it just gets bigger and bigger every year!
Go figure in cities like London or Paris!! |
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07/22/2004 12:02:18 PM · #13 |
Banker's recommendation: live with your parents indefinitely.
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07/22/2004 12:04:56 PM · #14 |
Originally posted by Jacko:
Banker's recommendation: live with your parents indefinitely. |
who's side are you on? LOL |
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07/22/2004 12:07:53 PM · #15 |
Originally posted by pitsaman:
In my area : 2 bedroom condo 1 bath 136.000 (28 years old)
Mortgage +Tax+ association fee 1150 $/month
or
To rent same unit $800/month
Who is crazy to buy now and pay extra 350 $ a month?
It looks like a crash is coming ! |
But you'll potentially save several hundred a month in tax deductions, which would make that extra cash out a wash. On top of that, you build equity, you have ownership of your home, and at least some of the money you put into your payment goes into your "pocket" in terms of paying down your principle. Paying rent, 100% goes to the landlord. There's a lot more benefit to purchasing than shows in just the monthly payment.
Association fees kind of suck though...
And, as others have already pointed out, 135k for a condo isn't too bad compared to some parts of the country. Out here on the left coast, condos are pushing into the 300k range. If the buble does burst, it'll be pretty harsh out here. We're starting to plan on moving back east/mid-west in the next year.
Message edited by author 2004-07-22 12:09:27. |
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07/22/2004 12:26:06 PM · #16 |
Originally posted by ScottK:
Originally posted by pitsaman:
In my area : 2 bedroom condo 1 bath 136.000 (28 years old)
Mortgage +Tax+ association fee 1150 $/month
or
To rent same unit $800/month
Who is crazy to buy now and pay extra 350 $ a month?
It looks like a crash is coming ! |
But you'll potentially save several hundred a month in tax deductions, which would make that extra cash out a wash. On top of that, you build equity, you have ownership of your home, and at least some of the money you put into your payment goes into your "pocket" in terms of paying down your principle. Paying rent, 100% goes to the landlord. There's a lot more benefit to purchasing than shows in just the monthly payment.
Association fees kind of suck though...
And, as others have already pointed out, 135k for a condo isn't too bad compared to some parts of the country. Out here on the left coast, condos are pushing into the 300k range. If the buble does burst, it'll be pretty harsh out here. We're starting to plan on moving back east/mid-west in the next year. |
What about repairs/improvements,don't forget it is 28 -29 year old building !
When you rent landlord fixes all ! |
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07/22/2004 12:30:10 PM · #17 |
Originally posted by pitsaman:
Originally posted by ScottK:
Originally posted by pitsaman:
In my area : 2 bedroom condo 1 bath 136.000 (28 years old)
Mortgage +Tax+ association fee 1150 $/month
or
To rent same unit $800/month
Who is crazy to buy now and pay extra 350 $ a month?
It looks like a crash is coming ! |
But you'll potentially save several hundred a month in tax deductions, which would make that extra cash out a wash. On top of that, you build equity, you have ownership of your home, and at least some of the money you put into your payment goes into your "pocket" in terms of paying down your principle. Paying rent, 100% goes to the landlord. There's a lot more benefit to purchasing than shows in just the monthly payment.
Association fees kind of suck though...
And, as others have already pointed out, 135k for a condo isn't too bad compared to some parts of the country. Out here on the left coast, condos are pushing into the 300k range. If the buble does burst, it'll be pretty harsh out here. We're starting to plan on moving back east/mid-west in the next year. |
What about repairs/improvements,don't forget it is 28 -29 year old building !
When you rent landlord fixes all ! |
You still get nothing out of it if you move whereas if you owned it you'd have equity which would be returned to you when you sell (in whole or in part depending on the market at the time). Maybe this particular building is not a good choice for purchasing a condo and it's time to look elsewhere.
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07/22/2004 12:45:16 PM · #18 |
| Equity don't always go up,didn't Margaret Thatcher loose election because housing prices drop 100-200 % ? |
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07/22/2004 01:05:28 PM · #19 |
| Kinda off topic a little, but you wanna hear something REALLY scary? My grandparents bought their house 30 some years ago for about $15,000 in San Diego, run of the mill 3bd (small)/2bath ranch with pretty much no yard, no AC, eat-in kitchen, nothing special. Get this, their next door neighbor just sold theirs for about $600,000!!! Pretty much the same house with a few minimal updates. All I know is that I'll never be able to move back there.... EVER!!! |
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07/22/2004 01:09:09 PM · #20 |
Originally posted by pitsaman:
Equity don't always go up,didn't Margaret Thatcher loose election because housing prices drop 100-200 % ? |
If you plan on moving alot then buying is probably not a good choice. If you plan on staying put for a while then it may very well be. If you're buying to get a rental property then what does it matter what happens on paper? Just my thoughts.
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07/22/2004 02:06:15 PM · #21 |
Originally posted by pitsaman:
Equity don't always go up,didn't Margaret Thatcher loose election because housing prices drop 100-200 % ? |
Housing prices can't drop 200%. If they did, you'd have to pay someone 135k to take the condo from you. :)
But seriously, with the occasional exception, historically over the long term, real estate at least holds its value, and usually appreciates. Our first house was purchased for 135k in 1989, and by 1991 we couldn't have gotten 110k for it. But by 2000 we were able to sell for 172k. Yes, you can lose value short term, and now may not be the best time to buy. But if you're buying a place to live long term, and you can afford it, then you just need to do it and not worry about minor fluctations in value. Unless the neighborhood gets declared a toxic waste dump or every business moves out of town, you'll be better over the long run.
On the other hand, if you like to move frequently, or are just looking for it as investment income, then this may not be the thing for you. |
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07/22/2004 02:11:13 PM · #22 |
Originally posted by jenesis:
Kinda off topic a little, but you wanna hear something REALLY scary? My grandparents bought their house 30 some years ago for about $15,000 in San Diego, run of the mill 3bd (small)/2bath ranch with pretty much no yard, no AC, eat-in kitchen, nothing special. Get this, their next door neighbor just sold theirs for about $600,000!!! Pretty much the same house with a few minimal updates. All I know is that I'll never be able to move back there.... EVER!!! |
What area? We bought our current house in Oceanside for 212k back in 2001, and similar houses are now going for $450k. That's over 100% appreciation in less than 4 years. Things are definitely a bit nuts around here. They're basically saying that the housing market is nearly closed to new buyers, and a lot of the buyers of those 600k + houses are people trading up. |
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07/22/2004 02:22:44 PM · #23 |
Here in AZ people are buying up houses like crazy to use as rental property because it's so much cheaper to buy then rent.
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07/22/2004 02:29:39 PM · #24 |
$9,900
2612 Madison St.
Gary, Indiana 46407
Bedrooms: 3
Full Bathrooms: 1
Single Family Home
Sq. Ft. (approx.): 1,120
ID#:
I guess location is important too !
$19,500
4025 Fillmore St.
Gary, Indiana 46408
Bedrooms: 3
Full Bathrooms: 1
Half Bathrooms: 1
Single Family Home
Sq. Ft. (approx.): 897
ID#: 111804
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07/22/2004 02:48:50 PM · #25 |
Originally posted by pitsaman:
$9,900
2612 Madison St.
Gary, Indiana 46407
Bedrooms: 3
Full Bathrooms: 1
Single Family Home
Sq. Ft. (approx.): 1,120
ID#:
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You don't want to move to Virginia.
Basic 2 Car Townhome =
$ 449,900 Roxbury 2
20376 KENILWORTH TERRACE
3 bedrooms with 2.5 baths
2,392 sq.ft. home on a 2,178 sq. ft. lot
Message edited by author 2004-07-22 14:55:09. |
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