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Save your money, keep adding to your nest egg and rent a nice apartment. Owing is oversold and what we own begins to own us. I found this out when I bought a condo at one point in my life....
That might be well for you, but it is not wise financial advice in a lot of cases.
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Location: Formerly Pleasanton Ca, now in Marietta Ga
10,345 posts, read 8,557,056 times
Reputation: 16679
Quote:
Originally Posted by Winter Sucks
Getting a loan IS a concern. However, I was hoping with a large down payment and 800 credit score that I'd qualify. I really don't want to own a house because it could have the same issues with water coming into the basement. It's quite common around here, actually. When we get downpours there are stories on the news of people who have a foot or more of water (I don't get that much)in their basement.
Before you do anything check with a mortgage broker. Even with a high score and down payment your dti may not qualify you to even get a loan since you only make $20K.
You ability to make payments is the biggest factor here.
It would be bad if you went into contract to sell and discover you can't qualify to buy.
Sell the house, invest the money from the sale of the house and rent a condo with the interest you earn on the sale of the house.
Owning, whether a house or a condo, is overrated and comes with too much hassle and expense. Renting is liberating and keeps finances more predictable. We enjoy renting a condo from an individual rather than renting an apartment in a complex as it feels more like a home and the owner keeps it in good repair for us.
If you own, yes it will be paid off eventually, but you will still have property taxes, insurance and repairs forever and the hassle and expense of keeping the place up to date to keep the home's value up. Kitchens and bathrooms get dated every 15 years and those are thousands upon thousands of dollars to remodel. Roofs have to be replaced (thousands), if the HVAC system goes, there's another $5k at least, and on and on. Speaking from experience here (was a homeowner for 20 years).
How much would the new windows and foundation work cost? What would the house be worth once it's fixed? How much would you realize if you sold the house as-is? I think we need to know those three things before we can give advice.
In some places homeowners can get low-cost loans to repair their houses. I know a 40 minute commute isn't ideal but the bottom line is that you need to have a home that can't be taken away from you if you suffer more financial reverses.
The problem with a condo is that they don't appreciate as fast as SFHs and can even leave you underwater. Plus you've got the HOA breathing down your neck and the possibility of increasing monthly fees.
I agree with this poster. Plus what if you lose this job or resign and now you have a condo with monthly HOA fees and you moved closer to your job for no reason. Fix your existing house and either continue to commute or find a different job closer to your home.
I almost bought a condo last summer but didn't and I'm glad I bought a small single family house. No HOA fees, I cut my own grass and do my own gardening. No neighbors on top of me or on each side. I don't like having neighbors so close because there's almost always some idiot that has to make everyone's life miserable. Condo living is not for everyone and they can raise your HOA fees or hit you with assessments if they don't have enough money in the reserve account for emergencies.
If the $100,000 you have is your retirement fund I would think long and hard about taking money out of it. Find out how much tax you would have to pay on the money you would take out of your investments. It may cost you more than you think.
Have you considered selling your house and buying a duplex? This way you would have rental income to help with the expenses.
Condo living is not for everyone and they can raise your HOA fees or hit you with assessments if they don't have enough money in the reserve account for emergencies.
Whether you live in a SFH or a condo, there's no getting away from paying for ongoing maintenance. If I was the OP I'd probably just fix up the house and look at what it would cost to hire someone to cut the grass weekly and clean the gutters once a year.
Buy a 2 or 3 flat and rent out the other 1 (or 2). Buy some thing in a decent area. Being a landlord is not that difficult and it will help you financially. Close to schools, medical facilities has been a big help when I had to put the sign out in the yard. Very rarely was it out more than one day.
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,345 posts, read 8,557,056 times
Reputation: 16679
Quote:
Originally Posted by otterhere
My feeling from reading the OP's post is that she doesn't want this current house under any circumstances; she wants out of it.
Definitely buy the condo and sell the current for whatever you can get for it to pay off the new mortgage.
An owned home is the best investment you can make. Peace of mind: priceless.
It really depends. It not a great piece of mind on a paid off condo knowing if prices drop, condos are among the first to take the hit.
Also you are at the mercy of the HOA which if you have a limited income can wreak havoc on your budget. If poorly run they might have to charge an assessment. If you don't or can't pay it they can foreclose on you. I know someone who got slapped with a $40k assessment on his condo for replacing siding throughout the complex.
Also when it's paid off, do you truly own it? You own the space within your walls, but not the exterior or grounds.
As far as investment some people own their home for years and find its worth what they paid for it.
The op is too financially on the edge to make a bad decision.
I'm not anti ownership, I fully believe in owning real estate. I own over 20 houses myself. I also have a few condos and the hoa can be a pain.
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