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A lifetime of hearing "rent is just throwing your money away" propaganda from my family convinced me to buy a condo just before the housing market crash. Resul

by nsxwolf 11y ago

A lifetime of hearing "rent is just throwing your money away" propaganda from my family convinced me to buy a condo just before the housing market crash. Result: That condo is worth half what I paid. I got married and had children so we bought a house, but I am now a landlord for the foreseeable future. It sucks. I really wish I'd thrown my money away all those years - I wouldn't have this constant source of interruption and expense hanging around my neck. My advice for anyone who really wants to buy a house... I would suggest trying to make sure it's the last house you'll ever need.

pxeboot 11y ago
I did the same, except values never dropped where I was at. Sold for a 20% profit 3 years later. Real Estate prices are extremely local. There are many places where buying will likely never payoff. In other parts of country, renting is significantly more expensive then buying a similar home.
wahsd 11y ago
Not to rub it in, but something many people also don't consider when looking at condos is that there are generally speaking condo fees associated which can easily run $300-$800 for a run of the mill condo depending on amenities. There's also a dirty little secret that really doesn't get a lot of air time, many of the condos have what are essentially builder / developer royalties that go to the developer in perpetuity. So, on top of dropping 5 digits on closing and paying thousands in property taxes, you get to pay monthly fees and part of those go to the developer that built the complex with lowest bidder and shoddy illegal immigrant labor.
- sliverstorm 11y ago
  $800? A month?
  - e15ctr0n 11y ago
    Here is an overview of what is involved in condo fees: https://thebaverstockteam.wordpress.com/yesterdays-news/everything-you-need-to-know-about-condo-fees/ https://thebaverstockteam.wordpress.com/yesterdays-news/ever... Here is a reddit discussion from 2 years ago: https://www.reddit.com/r/Frugal/comments/1ektio/my_hoa_dues_are_ridiculous_what_options_do_i_have/ https://www.reddit.com/r/Frugal/comments/1ektio/my_hoa_dues_...
wtbob 11y ago
> Result: That condo is worth half what I paid. That happened to me, and I felt exactly like you do, six years ago — but the market has recovered, and I've paid off enough of my home that, if I wanted to, I could write a cheque for the balance of the mortgage. And local rents are up, way above house prices, so when I buy a house I'll have a rental property. Slow and steady wins the race. Hang in there, and you'll be glad you did.

by nsxwolf 11y ago

pxeboot 11y ago

I did the same, except values never dropped where I was at. Sold for a 20% profit 3 years later. Real Estate prices are extremely local. There are many places where buying will likely never payoff. In other parts of country, renting is significantly more expensive then buying a similar home.

wahsd 11y ago

Not to rub it in, but something many people also don't consider when looking at condos is that there are generally speaking condo fees associated which can easily run $300-$800 for a run of the mill condo depending on amenities. There's also a dirty little secret that really doesn't get a lot of air time, many of the condos have what are essentially builder / developer royalties that go to the developer in perpetuity. So, on top of dropping 5 digits on closing and paying thousands in property taxes, you get to pay monthly fees and part of those go to the developer that built the complex with lowest bidder and shoddy illegal immigrant labor.

sliverstorm 11y ago
$800? A month?
- e15ctr0n 11y ago
  Here is an overview of what is involved in condo fees: https://thebaverstockteam.wordpress.com/yesterdays-news/everything-you-need-to-know-about-condo-fees/ https://thebaverstockteam.wordpress.com/yesterdays-news/ever... Here is a reddit discussion from 2 years ago: https://www.reddit.com/r/Frugal/comments/1ektio/my_hoa_dues_are_ridiculous_what_options_do_i_have/ https://www.reddit.com/r/Frugal/comments/1ektio/my_hoa_dues_...

wtbob 11y ago

> Result: That condo is worth half what I paid. That happened to me, and I felt exactly like you do, six years ago — but the market has recovered, and I've paid off enough of my home that, if I wanted to, I could write a cheque for the balance of the mortgage. And local rents are up, way above house prices, so when I buy a house I'll have a rental property. Slow and steady wins the race. Hang in there, and you'll be glad you did.