Better off renting or buying a condo now in Seattle?

[eskercurve]

If you are going to be thinking long-term, then condos make sense in a couple areas. One area is Capitol Hill. The Brix condos are going on sale and are going to be discounted about 65% off the original ask price. That means a 1 br / 1 ba condo in a hip part of the city will be about $290k.

As for other parts of the city, values will continue to fall.

But one other question I have is, why bother owning if you are working for an airline? To me, if you travel often, then owning a condo doesn't make much sense, especially when you factor in HOA.

[exit82]

But one other question I have is, why bother owning if you are working for an airline? To me, if you travel often, then owning a condo doesn't make much sense, especially when you factor in HOA.

well- I have to live somewhere- if I'd been renting instead of buying condos the last 20 years I've worked for airlines I wouldn't have the 400k to buy my next place would I?

[BellevueGuy]

Originally Posted by eskercurve

One area is Capitol Hill. The Brix condos are going on sale and are going to be discounted about 65% off the original ask price. That means a 1 br / 1 ba condo in a hip part of the city will be about $290k.

I would expect the final price at the auction will be much higher than the starting price. The ultra low price is just an eyeball marketing stunt.

I keep hearing about the same argument for buy vs. rent and I can't quite get it. Maybe Ira is around and he can kindly offer some insights. If it costs almost the same to rent and buy, then of course I should buy?

Paying rent is like throwing money into water, at least paying mortgage pays a portion of the principle and you also get tax break on the interest paid.

If the mortgage would be like twice the rent, that's a different story.

[Ira500]

Bellevue Guy hit the nail on the head. If paying a mortgage costs a whole lot more than paying rent, why buy?
Yes, there are some tax advantages to owning. Yes, once you own the landlord isn't going to kick you out because his cousin Marvin is going to move in. Yes, there's a certain satisfaction in being able to make changes without the landlord's approval, but how much is all that worth?
I guess it depends on who you are. For me, if I had to pay a mortgage that was double my rent, I'd keep renting, and that would be an indication that sale prices were likely to come down closer to their historic ratios of what? 1.2-1.5 monthly mortgage payment vs monthly rent?

[Anders15]

glad to see Des Moines getting some positive feedback, i was kinda worried at first coming from va.

[eskercurve]

In terms of actual cost of living, owning a home, you have to take into consideration all the following:

1) Principal + interest on the loan,
2) home upkeep PLUS refurbishing
3) taxes

With renting you only have to pay the rent.

With principal in the 400-500k range to get anything suitable in Seattle, plus the taxes on that, plus refurbishing ... I don't see how anyone can possible fathom rather buying than renting.

That said if you are buying to be speculating on the market, I'd speculate that such individuals have earned my complete disdain and I will refuse to help anyone buy for speculation. If you're looking to have a place to hang your hat and call it home, that's another thing ...

[Swigchow]

There appears to be a couple of upcoming Condo auctions ie Brix and Gallery. Does anyone have any comments about these? What are the HOA's?
thanx

[Ira500]

With principal in the 400-500k range to get anything suitable in Seattle,

I guess everybody's definition of "suitable" is different, but I see lots of what I think of as nicer condos within the Seattle city limits for a lot less than 400-500 thousand dollars.