Beaverton Condo Values (Portland, Hillsboro: real estate, apartments, to rent)

[Revilla]

My daughter is considering buying a condominium in the Beaverton/Hillsboro area. I see quite a few listed in the 150 - 175K range. Any ideas on this market and what we should expect with regard to the asking price? Is there a glut, would she be in a good position to bargain. Any insight would be appreciated.

[Nell Plotts]

Visit the two Portland area real estate bubble blogs: Portland Housing Blog
and
Portland Real Estate Outsider

Before she gets too far along she should line up a home inspector to help her assess any for construction issues. One frequents this forum (yoo-hoo, send this lady a pm). I don't know this individual so as with all consultants make sure that they know their stuff and will work for you, not the 'deal'.

My concern is that the units built during the bubble years have poor craftsmanship, particulary the building envelope. Developments converted from apartments also tend to be bad buys in the long run.

IMHO condo prices will go down for a year or two. Unless there is an absolute need to buy now she should wait, investing this time in research. There is no reason to offer more than the County true cash value, and I would not buy anything built in the last 3-4 years. Just me.

[nancy thereader]

That is advice which will be useful to me, also. Thank you for that post .

[cdelena]

A condo is shared ownership and management. Be cautious about what you are buying into... I will never buy another condo.

[oldtintype]

Originally Posted by nancy thereader

That is advice which will be useful to me, also. Thank you for that post .

Are you still moving here Nancy?

[Nell Plotts]

Oregon requires 'reserve studies', unlike Washington. Making an offer on a condo should include contingencies such as review of the reserve study, reading the last 12 HOA meeting minutes- one year minimum, and HOA financial statement.

Then there is the HOA culture to consider. What kinds of people have purchased in the development. Do they follow the HOA covenants or do they test the limits of the HOA and neighbors? People are living in close proximity, are they good neighbors?

My next home will be in a condo, but I know my target neighborhood well and my price-point is higher than your daughter's. She should spend the next year getting to know the condo developments that she MIGHT buy into so that she can choose wisely.

[John Shaft]

Why is she considering a condo? In the city proper a condo may hold its value better than in the burbs. Nevertheless, there IS a condo glut here...downtown high-rise condo projects are being turned into apartments because buyers (many of who are walking away from previous offers) are disappearing. The condo market is TANKING (albeit probably more in the higher-end segments).

With a condo, you're paying a premium for a building which will depreciate, and one that has no land underneath it. Again, in the crowded city, that would work better, but in Washington County where there are houses with yards, the value isn't there.

Just my two cents. If she wants a condo and it fits her needs, more power to her. But she should definitely have leverage to negotiate the price right now; don't let anyone convince her otherwise.

[Revilla]

Many thanks for the responses. We are going to take a cursory look the end of May but certainly do not need purchase right away. Haven't really searched townhomes yet either and you still are tied to other residents but it may be a better route depending on cost. As a first time home buyer the goal for her is to at least not rent forever and derive some tax advantage as well.

[nancy thereader]

Are you still moving here Nancy

I had planned to, but I am having a little problem with my daughter (she ran away from her group home & is living here now). I would not be able to just take off and leave, unfortunately. I am still retiring, though (June 24th) and still will try to come out for a visit this summer. Thanks for asking , oldtintype. I have not forgotten you .

[John Shaft]

Originally Posted by Revilla

Many thanks for the responses. We are going to take a cursory look the end of May but certainly do not need purchase right away. Haven't really searched townhomes yet either and you still are tied to other residents but it may be a better route depending on cost. As a first time home buyer the goal for her is to at least not rent forever and derive some tax advantage as well.

Those reasons make sense. However, it may be cheaper to rent in the short term (although supposedly rents are rising due to fewer home buyers): I've heard it said you need to live in a place 2-3 years to make ownership a "better" deal than renting. I think that's a general rule, and the number might be higher in PDX considering the big gap between rents and home prices.

Some townhomes may be not much more expensive than the 175K amount. I know for a fact a couple of them that were looking for ~260K last year are now asking 225K. A little more square footage + garages in most cases. But my above comments about condos also apply to townhomes.