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Old 03-30-2012, 12:56 PM
 
5 posts, read 10,385 times
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I've done some research on the rental market and I was surprised to find out that renting is pretty expensive in Madison (esp the newer complexes). I have not really thought much about buying a place but some people told me it is a lot cheaper to buy and resell it laterl. I really don't know much about the real estate market in that area (I'm from NE) but when I look at some website it seems like the sale prices are going down compared to last year. What do you guys think about this?
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Old 03-30-2012, 03:38 PM
r_k
 
Location: Planet Earth
836 posts, read 1,980,500 times
Reputation: 452
The devil is in the details. For example, how good a bargain you get when a buy a place vs how much rent you pay. But, speaking on average, they say you should rent if you are sure to move in less than 5 years. This is because being a homeowner means several expenses that you may not face as a renter, such as utilities, mortgage interest payments, property taxes, repairs, and last but not least, the realtor fees you may pay when you sell the place. When you add those all up, the 5-year estimate is probably a good one.
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Old 03-30-2012, 03:48 PM
 
Location: Chicago
38,704 posts, read 93,581,888 times
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Quote:
Originally Posted by prizzi View Post
Is it stupid to rent rather than buy a 1BR apt if I'm moving to Madison for 3 years?
No.
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Old 03-30-2012, 03:54 PM
 
Location: Madison, WI
1,741 posts, read 4,948,223 times
Reputation: 818
There was a time when I would have said, "YES!" without hesitation, but the markets for condos is really soft in Madison. They aren't a good investment anymore.
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Old 03-30-2012, 03:58 PM
 
2,684 posts, read 3,747,047 times
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If you can get a short sale/foreclosure.

How can you be sure you wont have lost money in 3 years? What if you can't sell it? It is too short a time frame, and is a little risky.... only you know how much money you can afford to lose.
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Old 03-31-2012, 05:11 AM
 
Location: WI
3,925 posts, read 9,639,701 times
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i'd always recommend renting before buying first on a relocate; that's what we did moving from Madison to here and i'd say same for any other region. For one, while yes renting can be higher then a comparible mortgage (was here anyhow), there is no guarantee you can unload that property when you need to. Second, even if your stay is only 3 yrs, at least by renting (if you are unfamiliar with the area) your first choice may not be ideal for the term of your stay if you want to live in another part of the city.
So unless your financial situation really needs the add'l tax right offs for mortgage interest and prop tax (i'd check that hard before committing to a buy), i'd say rent away
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Old 03-31-2012, 09:51 AM
 
Location: Sector 001
9,424 posts, read 7,868,139 times
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personally I always thought the idea of buying condos just to 'own' it was silly.... but they are really cheap in some markets, would depend on the situation. I don't like the idea of buying a glorified apartment where I have to put up with other people to begin with. I want to be able to say 'bye' when I want to leave, without dealing with realtors and banks.

In general I think people are sheepishly herded into a 'I must own' mentality when ownership is expensive.... the cut the realtors and bank get, the property taxes and the like. Risk of not selling for break even.

Do the math and see what would actually be cheaper, and don't assume you'll be able to sell it for more or even break even down the road.

Homes are supposed to be places to live, not cash cows to make money on hoping someone else will buy it higher. I hope those days don't come back and homes stay more affordable for everyone instead of being investments to flip.

Good luck.
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Old 03-31-2012, 05:08 PM
 
202 posts, read 791,313 times
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I would definitely rent in this situation.
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Old 04-03-2012, 10:59 AM
 
Location: Downtown Middleton
95 posts, read 265,440 times
Reputation: 81
This is coming from a Realtor: If you aren't going to be in a condo for at least five years you are better off renting. We have a huge surplus of condos in the Madison area. Even if you get a forclosure, you will need to stay in the condo for 5 years to get back all of the money you'll pay in for condo fees, property taxes and of course the cost of selling.
Houses are different. I would say that if purchased in the right neighborhood a three year stay might be reasonable. But you aren't going to make money. A house should be a home, not a money maker.
Best of luck to you! Welcome to Madison.
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Old 04-03-2012, 11:06 AM
 
Location: West Virginia
13,123 posts, read 34,650,807 times
Reputation: 9097
Another vote for Renting!
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