Sell our condo or rent it out-south amboy?? (Princeton: for sale, real estate market)

[mommy1022]

Hi,
My husband and I live in South Amboy and are expecting our first child in August. We live in a beautiful brand new 2 bed/2 bath condo. I absolutely love it here but with me being out of work once the baby comes, I don't think we can afford our mortgage. Is it wise to try to sell our house or rent it out? I know the market is bad now and it is tough to sell. We are hoping to move to a less expensive apartment so I can be home with the baby.

Any advice would be great!!

[xmonger]

If the rental income won't cover the mortgage, prop taxes, + maint (after taking into account the tax benefits of your home as an investment property), then cut your losses and sell it.

Which brings up the next problem, do you have the $ to cover the losses?

It is my opinion, that in areas where the schools are not strong (like South Amboy) the correction in pricing will be more severe.

[Mydis]

If you are considering renting, I have been looking for a rental in that area... I am relocating due to work in Princeton but I would like to live near the water.

[DodgeViper01]

If you can provide more details on the condo (Complex, Payment, Unit Type, etc.) I think we can give you more of an idea of what it would be worth each way but like X said not covering payments might not be beneficial.

[MaverickDD]

Originally Posted by mommy1022

Hi,
My husband and I live in South Amboy and are expecting our first child in August. We live in a beautiful brand new 2 bed/2 bath condo. I absolutely love it here but with me being out of work once the baby comes, I don't think we can afford our mortgage. Is it wise to try to sell our house or rent it out? I know the market is bad now and it is tough to sell. We are hoping to move to a less expensive apartment so I can be home with the baby.

Any advice would be great!!

Sell it and move on. There's no benefit to keeping it.

You say you can't afford the mortgage once the baby comes. Then how are you going to afford both the rent on the apartment you'll be living at and the mortgage on the condo for the months its vacant and/or rent doesn't get paid?

More so, you can sell it presently without income tax consequences. Some of the tax provisions change after 2010.

[Sergio M]

You may want to list it for sale and for rent, this will give you the ability to maximize your marketing. In effect you will create a trifecta effect. You will market for sale, for rent, and for rent with the option to purchase. See what comes in, and you could make a decision. Remember homes that are priced right are the ones that are selling.

[poconosfamily]

if the rent is anywhere near the mortgage payment, then you should rent it....

if you have to take a $500 loss each month, then you need to weigh the pros and cons. $500/mo comes to $6k a year. if you can absorb $6k or even $12k (renting for 2yrs), there is a good chance the real estate market will bounce back and your place will sell for at least $12k more in 2 years than it will now. it's a risk. but, a calculated one.

[armx]

And to add to Poconofamily's advice and go one step further it might be a good idea to refinance and lower the payment before she loses her income and unable to do so later.

[RutgersParent]

Keep your 2br 2ba condo is the best way to do because if you go out to rent an apartment, and rent out your condo, what if your tenant later do not pay their rent to you? Then, you shall have no money to pay your rent; you will be screw up by your propective tenant.

Also, after having a baby, it is better NOT moving; you shall need lots of time to take care baby and rest. You should plan to go back to work and send your baby to childcare after 6 weeks, otherwise, if you keep your 2br condo, if you do not have enough money, you can always rent out a bedroom to get extra income...