Buying Condo in Portland - Good / Bad Idea? (to rent, house)

[nancy thereader]

Hawkeye.....I still think of MASH.
Thanks for the tip. I did look at that site & I was really surprised that there are so many places in the US that have homes for less than 100k. Muncie, Indiana ~ $68,000! There is not a single place on Long Island where I am now or in Portland that you can buy for even five times that. I wonder what it's like there in Muncie. Isn't David Letterman from around there?

[linh]

I own a condo (in Bay Area CA, I live in it, it's in a 3 story building) and I own a townhouse in another state.

Noise - most HOA's have CCRs that regulate what your upstairs neighbor can use as flooring. In my CA CCRs, anyone off ground level CANNOT use anything but carpet. And I speak from (frustrating) experience, that it makes the world of difference. The layouts of most condos (at least new developments that I've seen, are the inverse of each other. For example, two bedrooms aren't wall/wall. This helps a great deal. The new ones in the Pearl District, as mentioned in a previous reply, just check their blueprints.

But, as a side not - when I was reading your post - I was seeing you more in a loft. Now, lofts are plentiful here in the Bay Area, and I will say, mi gusta mucho. Very attractive, and because you have such large volume inside, with the right acoustics, if can really help with keeping your neighbors happy when practicing your riffs. However, on the exact opposite spectrum, without the right acoustics, you'd be a giant ampliphier. But a lot of lofts, say in Oakland, are made with brick walls. And from what I heard, not a lot noise in being penetrated. With that 500K max price limit, you think you can get a loft?

[fojo]

4 acres to 1400 sqft condo....

little to no experience with apartment living...

rent first and see?

[Pen Cap Chew]

Hi linh. Yes, a loft is definitely what I want. I hate walls (except a bathroom ) so a large open area is ideal, with gigantic windows and hardwood floors (can't stand carpet). Almost all of the lofts and condos I've seen in the Pearl District do not have carpet.

Yes, I've seen several lofts in my price range that I like a lot, and the prices have been dropping quite a bit on some of them. And at least one new condo building (the Wyatt) is switching over to apartments. I think these developers are starting to realize all of these condos aren't going to sell, especially at the prices they are asking. So if any of you good people want an apartment in the Pearl in a brand-spankin-new building, check out The Wyatt, it's pretty nice.

Originally Posted by fojo

4 acres to 1400 sqft condo....

little to no experience with apartment living...

rent first and see?

I'm very adaptable so I don't foresee too many issues living in a condo/loft. If there are problems I'm not happy about, I'll move. I'm self-employed so I can take my job with me anywhere. When I sell my house, I need to put that cash back into real estate within 2 years or I'll have to pay taxes on any profit from it. So I'd rather buy and not rent, and when I buy my loft, I'll make sure it is a very desirable loft that will be easy to sell when I decide I want another change.

[nancy thereader]

Are the prices really dropping in Portland , pencap? I will be looking in June so that would be good news for me. Of course, if they drop here on Long Island even more, I will be out of luck. It's like the stock market in a way.

[Pen Cap Chew]

Yes, they are coming down in price. There seems to be a ton of condos on the market in Portland now and they aren't selling too quickly. A really nice loft in the Pearl I've been keeping an eye on has had three price reductions recently and still no takers. I've seen MANY price deductions lately on other condo/lofts, it seems that every month they go lower if it doesn't sell. But they are still ridiculously expensive even after the reductions! However, I think some sellers are probably getting desperate and will take a fair offer. Nancy, I don't know how much you want to spend, but there are some nice NW condos for as low as $129K, $142K, $169K, $176K, $194K, small but cozy. These are just the asking price so they will probably go lower.

[wtg]

Originally Posted by Pen Cap Chew

When I sell my house, I need to put that cash back into real estate within 2 years or I'll have to pay taxes on any profit from it. So I'd rather buy and not rent, and when I buy my loft, I'll make sure it is a very desirable loft that will be easy to sell when I decide I want another change.

I think the IRS changed their rules on this (at least I hope they did, because I just sold my place with no plans to buy again anytime soon). As long as you lived their 2 out of the past 5 years, you don't owe any taxes regardless what you do with the money.

[fojo]

Originally Posted by Pen Cap Chew

Hi linh. Yes, a loft is definitely what I want. I hate walls (except a bathroom ) so a large open area is ideal, with gigantic windows and hardwood floors (can't stand carpet). Almost all of the lofts and condos I've seen in the Pearl District do not have carpet.

Yes, I've seen several lofts in my price range that I like a lot, and the prices have been dropping quite a bit on some of them. And at least one new condo building (the Wyatt) is switching over to apartments. I think these developers are starting to realize all of these condos aren't going to sell, especially at the prices they are asking. So if any of you good people want an apartment in the Pearl in a brand-spankin-new building, check out The Wyatt, it's pretty nice.



I'm very adaptable so I don't foresee too many issues living in a condo/loft. If there are problems I'm not happy about, I'll move. I'm self-employed so I can take my job with me anywhere. When I sell my house, I need to put that cash back into real estate within 2 years or I'll have to pay taxes on any profit from it. So I'd rather buy and not rent, and when I buy my loft, I'll make sure it is a very desirable loft that will be easy to sell when I decide I want another change.

If you do believe you'll easily be able to resell your condo for profit or at break-even, whenever you're looking to move, then it sounds like you're set. I'm pretty sure wtg is correct on the current tax law

Washington DC CPA firm - Sale of your home tax questions

but perhaps you have a unique circumstance. High-end condo market is very risky short term, IMO, but if you're looking lower end or are confident in your choice, go for it and get what you want!

[Lillietta]

As long as you lived their 2 out of the past 5 years, you don't owe any taxes regardless what you do with the money.[/quote][/i]


Check with a taxperson. From what I understand, if you sell your house under $250,000 there are no capital gains.

[Pen Cap Chew]

Cool, thanks guys!

So my understanding is, for example, if you paid 500K for your house and sell it for 750K, you wouldn't have to pay any taxes on that 250K profit. If you are single, the tax-free gain can be up to 250K, if married it is 500K.