Buy or Rent in Boston

[maggiekate]

Originally Posted by sharencare

I say given the Dad's outline it's still a good investment. Especially if the daughter doesn't do the low/moderate income Boston program. Then without the program it doesn't have to be owner-occupied, and at the worst, they can rent the place out when she's transitioning. Remember, there's also the mortgage deduction rate, even if Congress changes that deduction, it's less likely to affect her that her her moderate income level. The thing about Boston, if she picks a good area near public transportation, she'll likely find a renter because of the huge student population always transitioning. Say she can get a 1000 sf condo with two bedrooms for $260K, she would have a $50K down payment to avoid the pmi. Taxes and insurance would be $230 a month. The mortgage would still be a total of around $1250 a month.

she still would have the condo fees and sometimes condo have the special fees if they need money for
roofs etc., she should be sure they have plenty of reserve money and read the rules also. Is her income
50,000 b4 or after taxes.

[blisterpeanuts]

Originally Posted by Blueberry Pancake

Tell the young lady to go on craigslist and find a nice place to live with some other young professionals. It will give her the freedom to save money, live in a great area, and be able to go out and enjoy herself now and then. The idea of a 25 year old making $50K/year buying a home in Boston is ludicrous.

This is the best advice yet.

House/condo ownership is not a wise 3-5 year investment for a young single person. Wait until she's 30, married, and looking to settle down. Then she'll have a larger nest egg and a higher salary not to mention a spouse's salary, and can consider a starter home in a good school district.