Question

Rent or buy condo townhouse?

What's best to do? If I rent, I'm throwing 20 grand down the drain a year. But landlord pays repairs.
If I buy a condo, I have to pay almost the same amount in mortgage, maintenance fee, and property tax a year. They take care of the land BUT if there was a major repair needed to my condo roof I think I have to pitch in (could be thousands). Should I buy me condo at once or pay over time? I have the money but was thinking I don't know if I'll be here forever and if I pay all at once I lose tie up almost one million and if I ever sell I got to find someone who can pay that. I don't want a house because its too much responsibility and I like a little more sense of community. I think I need a townhouse rental or townhouse condo ownership. They cost almost the same each year if I don't buy the condo at once but at the end I have a condo I can sell or I'm liable for if I can't. I guess I'll see what I fall in love with. I think I'll opt to rent so not stuck at first. You agree?

3 years ago - 4 answers

Best Answer

Chosen by Asker

Buying a townhouse or a condo is a very personal thing. I could never live in a condo or townhouse personally.

Your current financial situation should determine if you purchase now or continue to rent. In most financial circles you should never place a large down payment or pay all cash for a house. You become equity rich and savings poor.

With the uncertainly of the real estate market you could lose your large down payment of all cash purchase if your condo or townhouse depreciated in value a few weeks or months after purchase.

Appreciation might take longer than normal, however, eventually real estate will make a come back, therefore if you plan to sell and expect a profit, you might be in for a 4-5 year wait for appreciation, and of course that would depend on the area in which you reside.

If you decide to purchase a condo, if you decide to move you must either rent the condo or sell the condo. Most condo associations would not allow a condo to sit indefinitely. Before buying you should read the condo association's CCR's and by-laws to see their requirements about selling and renting. Most condo associations have strict rules about renting a condo within the complex.

In tax and legal matters you should always consult your tax consultant and attorney.

I hope this has been of some benefit to you, good luck.


"FIGHT ON"

3 years ago

Other Answers

It depend if you live in a over inflated market like Vancouver Canada prices might crash. If you live in a market where prices have already crashed go for it and buy.

by Peter Gas - 3 years ago

Buy now the interest rates are low and there are many homes to choose from does it have to be a condo because you then usually have HOA (HOme Owners Association Fees) along with mortgage and utilities and maintenance expenses. Find a good realtor to help you. It is a buyers market. Happy New home buying.

Source(s)

by Janice 10 - 3 years ago

condos are no good. like you said if the condo assn deems a repair needs to be done, they will jack up your monthly fees $$$ with no notice and then what if you can't afford your mortgage pmt? if you buy a house then you decide what repairs will be done at what time. renting is a good shrot term option because worst case is you break the lease and lose your deposit.

by Because I Said So - 3 years ago