Relocating: Rent vs Buy? (Seattle, Redmond: for sale, rentals, condos)

[kwarden13]

I am relocating to Seattle and am a little overwhelmed with whether to rent or buy and in which areas.

Situation
Married, no kids, in early 30s
Budget if renting: $2k a month (open to a larger 1 bedroom)
Budget if buying: $500k (really want a 2 bedroom)
Want a 45-minute commute or less to SLU using public transit
Don't care about gyms and building amenities
Open to areas since we do not have kids so schools not an issue

Found a few condos in Magnolia around $400k but not sure why they are so cheap. Also, notice the HOAs are really high so then we were thinking maybe go up in price but pay less HOA. With the high HOAs we are not sure buying makes sense.

Also, if we do buy, we would like the ability to rent it out later on if we move to a bigger place. With the high HOAs not sure how we would cover the expense for what rentals are getting. Maybe I am missing something.

Thoughts?

[homesinseattle]

Originally Posted by kwarden13

I am relocating to Seattle and am a little overwhelmed with whether to rent or buy and in which areas.

Situation
Married, no kids, in early 30s
Budget if renting: $2k a month (open to a larger 1 bedroom)
Budget if buying: $500k (really want a 2 bedroom)
Want a 45-minute commute or less to SLU using public transit
Don't care about gyms and building amenities
Open to areas since we do not have kids so schools not an issue

Found a few condos in Magnolia around $400k but not sure why they are so cheap. Also, notice the HOAs are really high so then we were thinking maybe go up in price but pay less HOA. With the high HOAs we are not sure buying makes sense.

Also, if we do buy, we would like the ability to rent it out later on if we move to a bigger place. With the high HOAs not sure how we would cover the expense for what rentals are getting. Maybe I am missing something.

Thoughts?

Hi warden, Really important to check the financial health of the HOA. There are some decent buys in Magnolia, make sure there aren't any assessments coming that you will be on the hook for. Good research is everything. Commuting options can be a bit limited from there. You might want to consider the Maple Leaf and Northgate area, pretty good value for money and light rail coming soon. Greenwood Avenue north of 85th St would have some 2 bedroom options in your range as well with good bus options.

[Ira500]

Originally Posted by kwarden13

I am relocating to Seattle and am a little overwhelmed with whether to rent or buy and in which areas.

Situation
Married, no kids, in early 30s
Budget if renting: $2k a month (open to a larger 1 bedroom)
Budget if buying: $500k (really want a 2 bedroom)
Want a 45-minute commute or less to SLU using public transit
Don't care about gyms and building amenities
Open to areas since we do not have kids so schools not an issue

Found a few condos in Magnolia around $400k but not sure why they are so cheap. Also, notice the HOAs are really high so then we were thinking maybe go up in price but pay less HOA. With the high HOAs we are not sure buying makes sense.

Also, if we do buy, we would like the ability to rent it out later on if we move to a bigger place. With the high HOAs not sure how we would cover the expense for what rentals are getting. Maybe I am missing something.

Thoughts?

Buying a house or a condo is a big financial undertaking, and Seattle's an expensive place. The huge run up in prices seems to have slowed, so if you rented for six months or a year, you probably wouldn't be hurting yourself financially. And many people on this forum have suggested getting to know the place a little and rent for a while before buying. It's not bad advice.

[kwarden13]

I am leaning towards renting however now having trouble finding a decent 1 bedroom under $2k near SLU. Hoping when I get there it will be easier.

[Angry-Koala]

Originally Posted by kwarden13

I am relocating to Seattle and am a little overwhelmed with whether to rent or buy and in which areas. ...

Thoughts?

I'm not real familiar with the Seattle market, but my impression is that prices are still overinflated and not likely to go much higher, so it would make more sense to rent for now, especially if you don't know what parts of town you like best.

[eugene_b]

I live in Magnolia in one of these (rent) and have seen some of them around for sale. These buildings are hit or miss - some are nice but some are very run down, which is obvious by just looking at them (perhaps those cheap ones you are seeing are in those buildings?). Worthwhile mentioning that occasionally one of these entire buildings get bought out, they quickly slap new siding on top of rotten frame and make it look nice. It's pretty hilarious to see every day I am walking to work and every day when I am passing these renovation projects, it sinks my desire to buy a little bit further; especially since it's not just a condo thing and I've seen exactly same thing done to houses.

[JOinGA]

My daughter just moved to Seattle and they are renting in Bothell. Good thing, because they had been considering buying in Bothell, but now realize that is not the location they prefer. Rent first and take your time buying would be my advice.

[Blondebaerde]

Originally Posted by Ira500

Buying a house or a condo is a big financial undertaking, and Seattle's an expensive place. The huge run up in prices seems to have slowed, so if you rented for six months or a year, you probably wouldn't be hurting yourself financially. And many people on this forum have suggested getting to know the place a little and rent for a while before buying. It's not bad advice.

Worked for me, always good advice:

Rented near work, in Redmond. Would have liked to live there, but really couldn't afford to buy. Expensive then, hideously so now.

• 1,001 road trips and 18 months later, I knew where I wanted to live and was "affordable." LOL: back then, $150K for a two bedroom condo in a nice area was "affordable." So, I bought and moved to Mill Creek.
  
• Made money on a couple unit upgrade-and-flip after '03, the pseudo recovery from the Recession of 2001 and E-Z money running up to the major crash (I'd call it a Panic) end of 2007 / into 2008.
  
• After the terror of all that horrid stuff ran out of the market, which bottomed in '11, bought where I wanted to live from cash under the mattress and equity in my final Mill Creek place: Kirkland, in my case.

Too many variables to just go out and "buy" something here, if it's alien to OP.

[leastprime]

Rent first. Seattle and the greater King Co county are quite interesting. Lots of neighborhoods.

[leastprime]

And a week later, what have found?