To buy or not to buy? Opinions needed!

[Clueless Morgan]

[Minimalist]

The question with real estate is always: "Location, location, location."

Neighborhood. Traffic. Schools ( even if you don't need them a future buyer might ).

Do a search for comparable units in the area that are advertised as having been upgraded and see what the prices are. Recent sales are better than real estate listings as the sales give the actual price rather than a wish.

Subtract your cost from the recent sales prices for comps and see if the difference covers your improvements. Remember to factor in that you will have lived there for 3-5 years essentially rent free if you proceed. You can calculate a reasonable cost savings for that by multiplying your current rental costs by 12 and figure out how many years it will take.

[Clueless Morgan]

The question with real estate is always: "Location, location, location."

Neighborhood. Traffic. Schools ( even if you don't need them a future buyer might ).

I live in the next neighborhood over currently (about half a mile from this place) and have cousins that live in the townhouses next to this community - the neighborhood in general is good and my cousins say the condos are quiet and well-maintained.

The complex entrance is off a very busy road but the unit itself is as far away from the road as you can get - maybe a quarter mile. You can't even hear the road from the unit. Behind this unit is a single-lane drive as part of the complex, then the complex property line and then an apartment complex behind some trees. It's not the greatest view or anything but there's not a unit peering directly into this one, though I don't know how often the drive behind this unit is used.

Good schools, but no middle school is listed.

Do a search for comparable units in the area that are advertised as having been upgraded and see what the prices are. Recent sales are better than real estate listings as the sales give the actual price rather than a wish.

How do you do a search for recently sold properties? Meh, screw it, I'll just ask my Realtor.

Subtract your cost from the recent sales prices for comps and see if the difference covers your improvements. Remember to factor in that you will have lived there for 3-5 years essentially rent free if you proceed. You can calculate a reasonable cost savings for that by multiplying your current rental costs by 12 and figure out how many years it will take.

Not currently paying rent; I'm living with my folks and they're letting me save the equivalent of monthly rent to my down payment fund, so there's that.



Oh, forgot to mention that the HOA fee is about $195 and that covers exterior maintenance, landscaping, commons, water, sewer, garbage and my total mortgage (assuming 5% which is higher than what I'd probably get) plus HOA fees would be about $790 a month.

[Cato]

I'll pick up where Min left off.

Nobody has a crystal ball, but you have to be real honest about how long you plan to be there. This makes a big difference in choosing to rent space or rent money (buying).

Don't convince yourself that if life throws a curveball that you'll just rent the place to keep up with the mortgage...huge pain in the ass.

I will be 44 next month. I've bought my last two homes. I made $20k on the first having been there less than three years. Last month I got a chech for $13.72 after being there for almost a decade. I know that the next 20+ years to retirement will require some moving so the next property I buy will be where I plan to retire.

Always a tough decision. Keep Min's analysis in mind and never forget when you buy you are renting money for awhile.

Almost forgot, DO NOT borrow the money for your down payment cleverly disguised as a PMI loan.

[Minimalist]