Talk me out of buying a condo... (Seattle: HOA, insurance)

[leastprime]

^Yes, I over generalized.

[Ira500]

Originally Posted by kwarden13

Yes, I can rent....but then I am paying someone elses mortgage. $2700 for rent vs $3500 to own. And that 2/2 is probably not 1600 sq ft

Do you want to be talked out of buying a condo, really? Or do you want cheerleaders who say " Yes, you should buy. You know you want to." I'm not going to do either, but buying and selling have expenses involved, between escrow and title, real estate excise tax( when selling), and commissions( seller usually pays both sides. Also, the local real estate market is harder to predict. A lot of the so called experts, real estate agents, purchased homes and condos in 2006-2007 and lost their shirts. They bought because they believed their own lines about real estate never going down, and that if you don't buy now, you'll never be able to afford it. A surprising number of real estate agents had to short sell their homes, or got foreclosed on.
Let's say you buy a 500,000 dollar condo, and the market turns. Four years later, you get a job offer somewhere else, or you've grown tired of Seattle as some people do. You can only sell the place for 450. Maybe it's not likely, but it's certainly within the realm of possibility. About 9% of that 450 has to go to commissions, taxes, escrow, bank extortion fees, etc, so that leaves 405. If you put 20% down when you bought, you'll end up giving that 405 to pay back the loans and pay all the fees, and that 100,000 will have been flushed down the toilet, or you can think of it as an extra 2000 a month you will have had to pay.
So, if you feel very confident that you are going to love Seattle, and plan on staying for decades, and will still have money left over every month for dining out, vacations, entertainment, etc, then sure, do it.
But otherwise, maybe it's a good idea to rent first and explore neighborhoods and decide if this is the right move.

[Scorpion3510]

Originally Posted by Ira500

Do you want to be talked out of buying a condo, really? Or do you want cheerleaders who say " Yes, you should buy. You know you want to." I'm not going to do either, but buying and selling have expenses involved, between escrow and title, real estate excise tax( when selling), and commissions( seller usually pays both sides. Also, the local real estate market is harder to predict. A lot of the so called experts, real estate agents, purchased homes and condos in 2006-2007 and lost their shirts. They bought because they believed their own lines about real estate never going down, and that if you don't buy now, you'll never be able to afford it. A surprising number of real estate agents had to short sell their homes, or got foreclosed on.
Let's say you buy a 500,000 dollar condo, and the market turns. Four years later, you get a job offer somewhere else, or you've grown tired of Seattle as some people do. You can only sell the place for 450. Maybe it's not likely, but it's certainly within the realm of possibility. About 9% of that 450 has to go to commissions, taxes, escrow, bank extortion fees, etc, so that leaves 405. If you put 20% down when you bought, you'll end up giving that 405 to pay back the loans and pay all the fees, and that 100,000 will have been flushed down the toilet, or you can think of it as an extra 2000 a month you will have had to pay.
So, if you feel very confident that you are going to love Seattle, and plan on staying for decades, and will still have money left over every month for dining out, vacations, entertainment, etc, then sure, do it.
But otherwise, maybe it's a good idea to rent first and explore neighborhoods and decide if this is the right move.

I think I've found a unicorn. An honest real estate agent when speaking about market conditions!

[homesinseattle]

Originally Posted by Ira500

Do you want to be talked out of buying a condo, really? Or do you want cheerleaders who say " Yes, you should buy. You know you want to." I'm not going to do either, but buying and selling have expenses involved, between escrow and title, real estate excise tax( when selling), and commissions( seller usually pays both sides. Also, the local real estate market is harder to predict. A lot of the so called experts, real estate agents, purchased homes and condos in 2006-2007 and lost their shirts. They bought because they believed their own lines about real estate never going down, and that if you don't buy now, you'll never be able to afford it. A surprising number of real estate agents had to short sell their homes, or got foreclosed on.
Let's say you buy a 500,000 dollar condo, and the market turns. Four years later, you get a job offer somewhere else, or you've grown tired of Seattle as some people do. You can only sell the place for 450. Maybe it's not likely, but it's certainly within the realm of possibility. About 9% of that 450 has to go to commissions, taxes, escrow, bank extortion fees, etc, so that leaves 405. If you put 20% down when you bought, you'll end up giving that 405 to pay back the loans and pay all the fees, and that 100,000 will have been flushed down the toilet, or you can think of it as an extra 2000 a month you will have had to pay.
So, if you feel very confident that you are going to love Seattle, and plan on staying for decades, and will still have money left over every month for dining out, vacations, entertainment, etc, then sure, do it.
But otherwise, maybe it's a good idea to rent first and explore neighborhoods and decide if this is the right move.

Completely agree with Ira. Homeownership isn't for everyone. Separate from your emotions and what other people say, make the best decision for you.

[StealthRabbit]

1) What would the condo rent for if you had to change locations for job / family reasons? (Cover your costs?)
2) What is the current market in that condo organization? (How many sales have closed in last 2 yrs and what is 'ask vs get' price?
3) Yes, understand the financials of the condo organization and how well they take care of issue and if they have litigation pending against them.

[Gaylord_Focker]

Here's my argument for home ownership, it would be nice tobe 65 years old and not have to pay rent.

[Ruth4Truth]

Originally Posted by Gaylord_Focker

Here's my argument for home ownership, it would be nice tobe 65 years old and not have to pay rent.

The problem is, that with property values skyrocketing, homeowners get stuck with rising property taxes. This can eventually push people out of their homes, just like rising rents do.

[kynight]

buy a townhome, similar size as a condo

[kwarden13]

Originally Posted by kynight

buy a townhome, similar size as a condo

Even most have HOAs and the ones that don't I would not buy. You are stuck sharing a roof as someone you don't know with no oversight.

That seems more risky then an HOA.

[kwarden13]

Originally Posted by Ruth4Truth

The problem is, that with property values skyrocketing, homeowners get stuck with rising property taxes. This can eventually push people out of their homes, just like rising rents do.

Still much better to own a home and pay taxes then to have to rent.