is buying a CONDO/townhouse a good investment?
julie_ct
17 years ago
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mariend
17 years agochisue
17 years agoRelated Discussions
Selling Townhouse now
Comments (11)Hello Bill, We have a 2 year old son and plan to have more soon. We also don't have any privacy in the backyard and the condo restrictions are awful. I want my son to be able to play. Plus, the schools in my town are TERRIBLE right now and they're only going to get worse. There are no playgrounds or parks close by so I have to drive 25 minutes to let my son get out his energy. Most importantly, my husband's job requires to work from home several days a week and he is currently working out of our unfinished basement (too costly to finish if we plan on moving--not worth it) with no heat in Mass. It's awful for him. So we want to move. My husband has a dream job. The only reason finances are tight is because of the $60,000 loss we took on the condo plus the realtor fee. Our adjustable did go down last year but it will be going up this year with all these rate increases. My husband has an amazing salary that is due to increase substantially again this year, and we can afford a higher monthly payment. We prefer to get into our forever home while the interest rates are low. Any money we lose now should be made up in equity on the next home. In fact, since the next home will be considerably more than our current home, the net increase should actually be greater (20% of 300,000 is less than 20% of the 500,000). So when the market turns up in 20 years, we'll make back the money we lost now. And if this windfall does come through then it is going to be very large and will well exceed the total purchase price of the home. We will only take out a mortgage just to reap the tax benefits and put the rest away for savings. In either scenario, I think we can afford a new home. Staying isn't a reasonable alternative. The town is going downhill and I want to get out while the gettings good. Know what I mean? Thanks for your input though, Nicole...See MoreReal Estate Investments
Comments (19)Some real good advice in this thread. I'm with the SFH crowd. One thing to think on, if you want to go a bit up-market: If you are near a large educational institution they have visiting lecturers, term profs, visiting experts, etc. If the university is large enough and "prestigious" enough there will be a strata of these visitors who need upscale accommodations. We have a house in Calgary that is used by the university for this purpose. They pay a retainer whether it is used or not (about 80% occupancy) and a daily, weekly or monthly rate depending on length of stay. We have to keep it up, mind you, the place has better furniture, linens, dishes and etc than my personal home, lol. Gardener, cleaning service and nothing tattered or broken or needing attention ever. TVs etc have to be current but its a good way to get a plasma into my home when we installed the LED unit, right? anyway, like running a top end hotel but lucrative by a large factor over plain rentals, if you can get hooked up. We (brother and I) are thinking of getting another one for that purpose....See MoreBuying a duplex condo (AKA a condex)?
Comments (8)My brother bought a condex. It's a 1920's duplex that someone bought and flipped. The HOA charter has a lot of legalese to make sure that dues get paid, etc. The way his building is set up, he has one side of the building and the other owners have their side. The only common elements are the roof and the wall that runs down the middle to divide the two units. The roof was brand new when he bought the place and he's planning on selling before it needs replacement. Utilities are separate; yard work is done by the owners. I think he pays $50 a month dues, but that money is for future repairs/improvements. I think when he bought the place, the water was shared, but both DB and the neighbors wanted separate water meters and the flipper ended up getting those installed. He does give his neighbors some money each year to decorate the front of the house. They are really into holiday decorations, and as the two front doors are right next to each other, it looks odd to see one all dolled up and the other bare. As long as he doesn't have to buy the decorations or put them up, he's fine with spending about $50 a year to keep the neighbors happy. Because his neighbors are two older ladies, he does feel obliged to get out and shovel the shared front walk before they do--they are willing to shovel, but DB feels guilty about letting them do the work. I think he also mows their front lawn for them, but again, that's his own doing. The neighbors do bake him lots of cookies. He's been there three years and nothing has come up that required condo money being spent or the neighbors to agree on anything so far....See MoreParticulars about buying an ocean front condo?
Comments (14)All Real Estate is local, but one fact remains: location, location, location. If you buy the worst unit in a great building, it will always be the worst unit and will never resell it for what the other units are selling, whether you live there or rent it out. You may get renters for the same price, or nearly so, because they want the amenities that the community offers but they don't care as much for a temporary situation (unless it's really bad, overlooking the trash dumpsters or something while everyone else gets the ocean view). In a high-rise, the top floor, penthouse, will always be the most desirable because you'll have the best views and won't have someone living over your head (think about someone walking with heels on a tile floor above you - or big dogs clack-clacking their nails as they trot around - whatever). They will always sell for more and will rent for more. Depending on the floor plan and view, end units are usually more desirable than "middle" units and units next to or across from the elevator are less desirable. Low-rise buildings, four stories or less, slightly different rules apply. And here's one rule of thumb (although beach buildings are usually built so that all the units face the water), I've found that full water view is worth about $15K over no water view for otherwise the exact same unit. How that applies is if you buy on the second floor (the level above the garage, sometimes called the first floor) - although it has quicker easier access to the beach (one extra-high flight of stairs) - you might not have a view if it's been landscaped - you might just be looking at the tops of palm trees. There's a gorgeous high-rise condo that one of my buyers keeps looking at that is making me crazy. He wants the water view, but whenever he sees one listed under $600K he sends it to me - "what about this one?" and then I have to remind him that there is no view for the 5th floor and below (the upper three floors are between $800K-$1.5M) due to the huge live oaks and landscaping beyond. And then I remind him that this particular complex has over $1000 per month in fees and maintenance. And he has to join the Club (at $60K initiation and more monthly fees and minimums). But I digress....the point is: view. Either way, for Florida beaches, if it's relatively newer construction, there is no "ground floor" because it has to be raised and the space "under building" used for parking. So there are stairs or elevator for everyone. If it's older and the beach level has living units, the flood insurance is going to be pretty high - which will be paid as part of your monthly maintenance/condo/association fees. It will probably be spread out amongst all the units evenly, so even an upper floor is going to be paying the high rate. (I don't believe the multi-family units were "grandfathered" into paying the lower rates) And you will still need to pay for flood insurance for your unit in addition to hazard and liability....See Moreclemrick
17 years agobrickeyee
17 years agodevorah
17 years agojulie_ct
17 years agobrickeyee
17 years agodevorah
17 years agomarvelousmarvin
17 years ago
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