Home v. Condo (Boston, Lowell, Cambridge: real estate, apartment, condos)

[jumbolaw]

Hi there everyone,
My fiancee and I are stuck on the ultimate question, should we buy a house or a condo? We're 26 and 27 years old and looking to buy our first home. We found a great house in Westford, which is really everything we'd want in a house, but a long commute to Boston and lacking a real town center. We're now looking at condos in Andover, which are a little cheaper, close to the rail, and with a great town center, but lacking in everything that makes a house "a house." We need help! Does anyone have any experience with resale value of condos? Thoughts on Andover v. Westford? Our max purchase price is around $315,000 so a condo would really be our only way into Andover, which we really like. Thanks so much!!

[goyguy]

I'd go with Andover, because if space needs dictate and budget allows you can "trade up" after building some equity. There's no reason at the stage of life you're in to feel like you have to purchase the house you'll be staying in until the grandchildren finish college. You already know which of the towns you prefer, so given that you can buy into it I'd go that route if I were you.

[jumbolaw]

Thanks for the advice goyguy. I think I'm definitely leaning in the Andover direction but there are a lot of competing factors coming into play. Man, I thought looking for an apartment in Allston was an arduous process!

[brightdoglover]

Arduous, maybe, rewarding... Allston?!
The house in Westford, or one like it, will still be there later. It does sound like the Andover condo makes more sense.
Do make sure you have someone who knows what they're doing (maybe a real estate lawyer) look at the condo association financial statements. In today's climate, it's not enough to like the physical condo. Remember, you're buying property with strangers, and they have to come up with their share of the costs. (See Under: Learning the Hard Way, Cambridge, 1992).

[jumbolaw]

Sigh, I avoided Allston for a year while at law school at BU, but the commute from Medford just got to be too much. Luckily I was near the Brighton line and avoided the rowdy undergrad parties as much as possible.

One of the places we're looking at only has 3 units, so not a lot of room to hide for delinquent tenants.

Appreciate the advice as always!

[redpanda]

My husband and I went through a similar thing when deciding whether to go house or condo a couple years back. The things that gave us pause with condos are the additional condo fee tacked on (add that sucker in to the mortgage payment and you can up the price of a home you can afford a bit) and the potential for really bad neighbors right (literally) on top of you. We actually have friends who bought a condo and really, really regret it because of trouble they've had with the downstairs neighbor.

This is something I didn't think about till we had a baby, but I do have some friends with colicky babies who had neighbors complain about the incessant crying (as if they didn't want it to stop as well!).

Another big consideration is that outside of Boston proper, condos don't hold their value as well as SFH's.

But, on the condo side, there is usually less maintenance, and you're less likely to end up having to pay a ton of money for home repairs (like we did).

It's a hard call to make, good luck!

[Chewy, The Wonder Dog]

Consider looking at the Lowell area for condos. They have some fabulous old mills (Renaissance on the River for one - new development, sits on the river, very well managed) that have recently been developed and are at bargain basement prices. The downtown area is growing dramatically with great new restaurants, the Lowell Memorial Auditorium (some great concerts/shows there), Merrimack Reperatory Theatre and the Tsongas Arena (concerts, hockey). In addition, there's a commuter rail in Lowell. I know, I know....in some people just the word "Lowell" sends shivers down peoples' spines, but check it out.

[smarty]

Why Buy when you can rent?

I don't understand your reasoning for buying a condo? If part of your reasoning is investment.. forget about the suburb condo... you're not going to get much gain. Most people I know is lucky to even get the money they put in when they sell the condo.

Last of all... It is never a good idea to buy before you actually get married. Its just my opinion... I've seen so many problem.

[goyguy]

I don't see why marital status should have anything to do with the decision to purchase a home. All that would need to change on the deed is the status of the couple (if that even appears any more) and perhaps the wife's last name. Neighbors who moved onto my block last year are still "affianced," and told me that finances allowed them to either put money down for a house or get hitched but not both. Whether this is also Jumbolaw's situation doesn't matter. The dwelling would be considered "communal property" regardless of the nature of their union.

But I agree that condo ownership isn't the best alternative, especially outside the city. What other neighbors on my street did was keep their place when they traded up to a suburban house. They're collecting a nice sum in rent, and will keep that arrangement in place until the market's more favorable for selling. Another household did the same thing when they relocated. Of course, this is doable only if there's enough money to buy a house without the capital gain from the condo sale.

[MovingForward]

The latest issue of Boston Magazine has a feature on the outlook for real estate in Massachusetts, giving stats (past and present) for each major town/city in MA. Single family homes in Westford, apparently, are expected to not only hold their value, but to increase in value in the future, so it would be a great investment. From what I understand--although I have no personal experience of living in Westford--it's a great place to live and raise a family. Andover is a step up--but you'd probably get less house for the money. In the future, it will probably be easier to sell a single family in Westford than a condo in Andover.