[olecapt]

Originally Posted by Yeti

I just keep looking at the long term. 30 year mortgage. Where would you want to be in 30 years? House or Condo? Look at Condos that are 30 years old and tell me have they appreciated in value?

Of course this dosn't apply in Vegas where nothing is older than 15 years.

I just cant see buying a condo, living in in for 1-5 years, and reselling it and breaking even. And I have never met anyone that has pulled off the above scenario, in Vegas or Michigan. Run the numbers all you want, compare tax rates and property values and all that, but show me 1 person, just 1 person, that has bought a Condo, lived in it from between 1 and 5 years, sold it, and broke even.

I have met several people however, that have bought condos, are stuck in their condos, cant resell their condos, have massive maintenance fees on their condos, and wish they never bought a condo.

*disclaimer* I am 30 years old, by the time me and my peer group starting buying stuff like houses and condo's it was the height of the bubble. Also, my mindset (and that of my friends) is rather 'mobile' none of us actually plan on living anywhere for more than 5 years. Buying a house/condo is a way to lower monthly cost, live there for 2-4 years, sell and move on. I choose to rent, even though the monthly cost is higher, i know i wont be stuck when its time to move.

Don't sweat it. They behave just like other RE. If you want I have three or four I have sold over the past four years at a profit. None over the last 6 months but that happens.

Time to buy. Next time your lease comes up think about it. Save a couple of hundred bucks a month and, if you last a few years, make a little money.

[Yeti]

34 cities where it's still better to rent - Rentals - MSN Real Estate

[olecapt]

Originally Posted by Yeti

34 cities where it's still better to rent - Rentals - MSN Real Estate

YOu really think MSN is smarter than me on local RE? For a hairy guy you still have a lot to learn.

[barryhussein]

We always hear the question: Should I buy this here, or What is a better buy. My question is AT WHAT PRICE? You are going to make the most money on the one you get the best deal on relative to the comps. If you are an out of towner; the condo might give you more piece of mind. Anyone ever have to replace a sewer line? I've heard the one bedroom condo is a curse of death before, it may not be nearly as bad in a resort area, where someone is buying it as a second home. Sure, in a house, you can have a private pool (100 per month to operate), and you won't have people on top of you. But you might also have the auto mechanics across the street, and the RV parked out front, and the family reunions every Saturday before Mass. A common mistake I see is people living too far from work, just to have an SFR for their Rottweiler, or even further out to get a brand new house for their family. Is spending an extra 10 hours a week in your Toyota commuting really piece of mind? The "exurbs" certainly have been hit the hardest by the foreclosure/price declines in this current mess. The closer in, smaller houses have fared better here in the Washington DC area.

But, back to my original point: Get a great deal on either, and you will make more money when you sell.

[olecapt]

Originally Posted by barryhussein

We always hear the question: Should I buy this here, or What is a better buy. My question is AT WHAT PRICE? You are going to make the most money on the one you get the best deal on relative to the comps. If you are an out of towner; the condo might give you more piece of mind. Anyone ever have to replace a sewer line? I've heard the one bedroom condo is a curse of death before, it may not be nearly as bad in a resort area, where someone is buying it as a second home. Sure, in a house, you can have a private pool (100 per month to operate), and you won't have people on top of you. But you might also have the auto mechanics across the street, and the RV parked out front, and the family reunions every Saturday before Mass. A common mistake I see is people living too far from work, just to have an SFR for their Rottweiler, or even further out to get a brand new house for their family. Is spending an extra 10 hours a week in your Toyota commuting really piece of mind? The "exurbs" certainly have been hit the hardest by the foreclosure/price declines in this current mess. The closer in, smaller houses have fared better here in the Washington DC area.

But, back to my original point: Get a great deal on either, and you will make more money when you sell.

It also depends on purpose. Investment properties should not be bought for the best price. They should be bought for the best return. I tend to be conservative. So I would prefer a place that both gives a reasonable return and appreciates reasonably well. Those are different things.

As a for instance the best buys I know of are mid range houses. They were hit the hardest by the foreclosure and I believe they will recover very well when the foreclosure mess passes. However they are hard to rent. You can get an appropriate rent but it takes months. If you are going to occupy the home however...best thing you can buy. If not get the standard 1100SF 3/2 that always rents in 30 days.

You need to watch the rent as well as the home cost. The object is a high rent for the investment dollar. There are a couple of great rental areas where the rents are simply too low...so even low priced houses will be off the best obtainable. Or Mountain's Edge where the home prices, though way down from peak, are still too high for the rents available.

Nothing wrong with $40K condos. In some there have been $50K three bedrooms. Caution though. If the place collapses it could be a problem. And one could easily run into multiple thousand assessments to make it through the downturn. Read the HOA financials fully and carefully.

So yup a good price is part of it...but not nearly enough.

[Yeti]

Capt - Nope, I dont really trust MSN, I was just throwing that out there.

[olecapt]

Originally Posted by Yeti

Capt - Nope, I dont really trust MSN, I was just throwing that out there.

They were doing economic approximations that don't hold in the specific.

It is actually the first time since I moved to the SW 25 years ago that I think buying a home is actually cheaper than renting. And it is only certain homes.

[kimba01]

Originally Posted by barryhussein
A common mistake I see is people living too far from work, just to have an SFR for their Rottweiler, or even further out to get a brand new house for their family. Is spending an extra 10 hours a week in your Toyota commuting really piece of mind? The "exurbs" certainly have been hit the hardest by the foreclosure/price declines in this current mess. The closer in, smaller houses have fared better here in the Washington DC area.

I don't know if you have a dog or a family. I am guessing not, because if so, you would see that the extra 10 minutes you drive is most definitely worth that piece of mind. To go home and see them playing in the yard or to enjoy a BBQ on your patio with the kids playing around you? Yeah, much easier than dragging them to the community center after work and sitting there with none of your "stuff" at hand. Or the fact that they have friends in the homes in the area...there are many good reasons.

I think that is the whole reason many families move to the "burbs" to begin with. I have done both and while it was ok to be in the city when I was without kids, it was not real conducive for family life when I did have kids.

JMO.

[barryhussein]

I can't speak for LV, but one traffic light can add 10 minutes, here, let alone an extra 15 miles. That "new" house will never be new again.

[Yeti]

Kimba- I KNOW you know about the Exurbs. Can you say Canton, Auburn Hills, Brighton, Howell ??

Thats one thing I love about Vegas, its all in a 20sq mile radius....