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Is it smart to buy a (nice) co-op (2br, 1b) for about 170K in East Rockway, thinking about selling it in about 5 years or so?
Consider the closing costs and selling commission when you take this into account. 5 years is really the threshold I would have for buying something instead of renting. I would seriously consider if you run the risk of being relocated due to job and I wouldn't buy anything with 1 bedroom (they are harder to sell).
Personally, I wouldn't do it. Interest rates will be higher in 5 years and the scaling back of federally subsidized programs like FHA will, most likely, result in a market where people will have to put 20% down. If these two factors play out as expected then your property will lose value.
Consider the closing costs and selling commission when you take this into account. 5 years is really the threshold I would have for buying something instead of renting. I would seriously consider if you run the risk of being relocated due to job and I wouldn't buy anything with 1 bedroom (they are harder to sell).
Personally, I wouldn't do it. Interest rates will be higher in 5 years and the scaling back of federally subsidized programs like FHA will, most likely, result in a market where people will have to put 20% down. If these two factors play out as expected then your property will lose value.
Most people are putting @ least 20% down anyway though...to avoid extra charges like PMI. Also, I get where you're going, but there's really no way of knowing what the market is going to do.
He'll throw away ("lose") a lot more money renting...IMO.
I'm actually not renting right now, i just want to move out with my girlfriend; it's ready time do make that move hehe.
Yes, my question is in regards of reselling values...most people recommend buying if you know you are going to live there for at least ten years. But for a coop to? I mean...how much less can a 170 property be worth in 5 years???
I'm actually not renting right now, i just want to move out with my girlfriend; it's ready time do make that move hehe.
Yes, my question is in regards of reselling values...most people recommend buying if you know you are going to live there for at least ten years. But for a coop to? I mean...how much less can a 170 property be worth in 5 years???
That's what people said who bought in Florida 4 years ago!!!!
He'll throw away ("lose") a lot more money renting...IMO.
Doesn't that depend on how much maintenance will cost on the co-op?
When you consider maintenance costs on a co-op on top of a mortgage, could it be possible that it won't be a better deal in the end?
This may be a simplistic rent versus buy analysis... But if you assume that the RE market will be flat in 5 years then the cost of living in your coop will be interest on your motgge, closing costs and then selling costs ,a nd any monthly coop fees. if those costs are less than rent, it may be worth buying. Of course,you may also want to take into account tax consequences and investment losses on down payment and principal payments.
I think if you expect to stay 5 to 10 years you won't lose money.
Five years is short term in real estate so you are rolling the dice. You may get lucky because in down markets co-ops fall harder then houses. So, you may be picking up a pretty good deal.
Also, I agree with jdawg about considering Long Beach over East Rockaway. I think you've got a better shot on reselling if you are close to the beach.
Bottom line, even though you are planning to sell in five years, buy something that you would be happy living in for ten.
I'm actually not renting right now, i just want to move out with my girlfriend; it's ready time do make that move hehe.
Yes, my question is in regards of reselling values...most people recommend buying if you know you are going to live there for at least ten years. But for a coop to? I mean...how much less can a 170 property be worth in 5 years???
Who knows? I wouldn't buy a coop or condo with that short of a timeframe for living in it. Remember they are harder to sell than a house because you have lots of competition ... the other owners in the building ... and when there's a whole bunch of people with basically the exact same thing to sell, guess whose sells and whose doesn't? The guy willing/able/desperate enough to accept the lowest offer. Do a little experiment. Offer $135K on the coop. I bet you'd get it for that if they are desperate and competing with their neighbors to be the one to sell.
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