How to buy a condo? [Archive]

sdplusbeauty

11-13-06, 11:54 AM

Hello all..
I admit that I am a bit lost when it comes to personal finances, and home owning. Can you guys give me some advice on what it takes to own a condo, and where I start? There is a place I have my eye on and it's not that expensive. (For San Diego anyways).. $187k
What do you think??

Freakshow

11-13-06, 12:59 PM

Uh...need a LOT more info...

How much are you/ can you put down? What are the comporable sales in the area? What's the square footage? What's your credit like? How much are the HOA dues?

builder

11-13-06, 01:02 PM

MOST IMPORTANT!!!!!

Be wary of low prices. Condo construction plays a HUGE part of whether or not you will be happy with it. Talk to the neighbors. Ask about noise. Then talk to the developer if possible. Ask about noise. Then talk to the BBB. See if the developer has any complaints. Look up the area on the Real Estate system. San Diego has to have one. Talk to the neighbors again and ASK ABOUT NOISE. Also find out about HOA dues and fees and have there been any outrageous assessments. You need to ask the treasurer or President if the reserve funds are there to cover large repairs. You don't want to pay $100/mo only to find out there's a $500 assessment each year because the dues don't cover the expenses. Find out what you can and can't do to your condo. Many only allow paint and flooring changes with nothing being changed on the exterior. HOAs are both really good and really bad. There is rarely an inbetween with condos. And ask the HOA staff if there have been any issues with noise.

If there are ammenities (pool, workout room, etc) how much of this is being paid by the HOA dues? Is there a yearly fee? People forget about all the hidden costs of condos. Power? Gas? water? Trash? what is paid by the HOA and what is paid by the homeowner?

builder

11-13-06, 01:05 PM

One more thing, legally, is it a condo or a townhouse? Real estate terms aside, a condo is a unit that you own from the paint of one wall to the paint of the opposite wall. A townhouse is something you own all the way down the the dirt. That makes a huge difference in taxes, insurance, etc. All which affects your costs later.

http://www.ourfamilyplace.com/homebuyer/condo.html

Big Mark

11-14-06, 02:39 PM

I'm always too embarrased to buy them at the counter, so I either shoplift them or go into the bathroom and put 3 quarters together.

meatpile

11-14-06, 03:09 PM

Depending on what rent is like, and what your tax situation is like, I might discourage 'ownership' at all.

THE GUTTER

11-14-06, 03:41 PM

I'm headed in the condo over house direction. Prices here area so wild it would be a good rental investment for the future anyways. I got my eye on an older unit in a perfect neighborhood and closer to work and in town. I hate mowing the fuckering lawn too.

cockstrap

11-14-06, 03:54 PM

Depending on what rent is like, and what your tax situation is like, I might discourage 'ownership' at all.

Very good suggestion. Condos are much harder to sell than homes. I got lucky. Of the 8 units that have gone on the market out of 23 in my development over the past 3 years, only 3 have sold.

All three were gay owned, not that it makes a difference, but it does speak loudly (shhhhh! the neighbors can hear) about the difference a nice interior makes when it comes time to sell.

If you do consider buying, check the area to see how other condos have sold. How many have gone on the market to only come back off with no offers.

Freakshow

11-14-06, 04:22 PM

Depending on what rent is like, and what your tax situation is like, I might discourage 'ownership' at all.

Agreed. If you aren't putting anything down...and aren't in a high bracket you will most likely pay MORE out of pocket each month than if you rent.

cockstrap

11-14-06, 05:03 PM

Agreed. If you aren't putting anything down...and aren't in a high bracket you will most likely pay MORE out of pocket each month than if you rent.

And to make a profit, you have to either remodel the unit inside or hope that property values escalate. Condos don't have a great track record for making money unless it's a pre-construction flip.

kshead

11-14-06, 05:21 PM

Don't.

sdplusbeauty

11-14-06, 06:24 PM

Thanks for your advice.. I've been thinking this through a lot. I'm going to the Mortgage Broker on Friday to talk to them, because I just want to see what options I have and if it's worth it. Right now I am only paying $650 in rent, for a studio, and the rent/bills are split between me and my girlfriend.

How much are you/ can you put down?
I don't have any money saved, and can't put anything down.

What are the comporable sales in the area?
The other condos in this complex are about the same price, except the previous owner did a lot of remodeling in this one, so it's a few thousand higher.

What's the square footage?
463 - it's a studio.

What's your credit like?
Bad, but my girlfriends is good.

How much are the HOA dues?
$207/Monthly

Features: BBQ, Clubhouse/Rec Room, Exercise Room, Laundry Facilities, Pool, Spa/Hot Tub - has, Dishwasher, Disposal, Range/Oven, Refrigerator.

Here are a couple photos:
http://sandicorpics.sandicor.com/MediaDisplay/09/hr1000451409-2.jpg
http://sandicorpics.sandicor.com/MediaDisplay/09/hr1000451409-3.jpg
http://sandicorpics.sandicor.com/MediaDisplay/09/hr1000451409-4.jpg
http://sandicorpics.sandicor.com/MediaDisplay/09/hr1000451409-5.jpg

cockstrap

11-14-06, 06:48 PM

Keep renting. Seriously. Bad credit, no savings. What happens when the hot water heater, the a/c and the fridge all go on the fritz at the same time? That's right, McDonald's for dinner again tonight. Until you have the money in savings to make all your monthly bills for a couple months, keep renting. And regardless of how good her credit is, yours matters too unless the condo is in her name only. Then you're just renting from her and she's responsible for all that shit.

meatpile

11-14-06, 10:28 PM

HOly Shit - $650 month rent is a keeper.

No brainer. Keep renting. Buying the condo is a bad move. Take the extra money the condo would cost every month and invest it somewhere liquid.

Or *grimace* pay off the unsecured debt I hope you don't have.

Freakshow

11-15-06, 10:48 AM

If you are looking for 100%...580+ credit is the minimum and you're rate will be double digits...on a 2 year arm.

Do NOT buy...

You are probably looking at $1700+ per month in payments...PLUS HOA...PLUS taxes (I'd bet they are HIGH out there).

You're monthle expenditure will more than triple...

Redsnapper

11-15-06, 11:35 AM

:newsmile53: Don't buy, save your money, 463 sq. ft. for 187K????:confused:

meatpile

11-15-06, 12:12 PM

:newsmile53: Don't buy, save your money, 463 sq. ft. for 187K????:confused:

The price is not the issue - if that's what the market bears in SD, that's what it bears.

The issue is whether it's a good idea based on expenses - and it's a very bad idea.

THE GUTTER

11-15-06, 12:18 PM

Shrapnel

11-15-06, 12:18 PM

I say go for it. Sounds too good to be true. Home ownership, with no money down, is the American dream. Maybe your fat movie star friends will chip in some much-needed cash.:bottomup:

Freakshow

11-15-06, 12:22 PM

I never would sell it if I bought it. Rent income is pretty good here. I don't know how much the condo I want is, but based on newer onces in the area it should be in my price range. My deal is are the rates still good and should I do that interest only loan you guys were discussing.

Rates still kick ass. Interest only is good IF you are buying in an appreciating area and aren't using it to buy something you really can't afford. I'm working with a lady right now...80/20 purchase...

6.375% on the first and 9 on the second.

Both are interest only. She should make money on the property...good area and price...and she doesn't NEED the loan to be interest only.

meatpile

11-15-06, 12:28 PM

6.375% on the first and 9 on the second.

Does this mean zero down no PMI? nutty.

Freakshow

11-15-06, 12:40 PM

Does this mean zero down no PMI? nutty.

Yep...and the seller is paying the closing costs...

But those rates are with GOOD credit...and she does have savings / retirement, etc...

meatpile

11-15-06, 12:50 PM

Yep...and the seller is paying the closing costs...

But those rates are with GOOD credit...and she does have savings / retirement, etc...

I'm not even commenting on the rates. I'm commenting on the risks involved in buying a home with nothing down.

Freakshow

11-15-06, 12:53 PM

80/20's are so common now...it's almost becoming the norm. Even people with savings won't put money down. Risky? Yep. But it shows how our nation has become a bunch of spenders...not savers.

gridfaniker

11-15-06, 01:06 PM

I say go for it. Sounds too good to be true. Home ownership, with no money down, is the American dream. Maybe your fat movie star friends will chip in some much-needed cash.:bottomup:

Mo'Nique would take up that entire hot tub and leave behind a cheesy froth. Not good. the HoA frowns on that shit.

gridfaniker

11-15-06, 01:11 PM

freakshow, can you get me locked in to 3.25 percent on a 25-year mortgage, 63/37 with $350 and a Rutherford B. Hayes seven-cent piece down? It's for a tree house. I should be able to buy the tree and build the house for less than $10,000. (if it makes a difference, the tree is a silver maple).

BM meatpile with your response. be sure to attach a photo of a big fat sloppy Live Journals girl with a live wombat crawling out of her asshole.

Wonder Woman

11-15-06, 01:26 PM

SD- I don't know how long you and your girlfriend have been together, but unless it's been a very long time, please think long and hard about buying a place with her. If something should happen, and you guys break up, it could get really messy if both your names are on the mortgage. Not trying to be a downer, just hoping you are thinking of all the aspects. You need to look out for what's best for you in this situation. A 463 sq ft studio is very cozy.

Shrapnel

11-15-06, 01:42 PM

SD- I don't know how long you and your girlfriend have been together, but unless it's been a very long time, please think long and hard about buying a place with her.

If she thought about long and hard things, she wouldn't be living with Moo-Moo to begin with. So please, only serious advice from now on. Got it Toots?

Freakshow

11-15-06, 01:54 PM

Wonder Woman

11-15-06, 01:56 PM

If she thought about long and hard things, she wouldn't be living with Moo-Moo to begin with. So please, only serious advice from now on. Got it Toots?

You're so right. Silly me. I don't know what I was thinking.

Redsnapper

11-15-06, 03:53 PM

Having Collin as a renter may result in the lender foreclosing on your treehouse. I mean all the health code violations that'll be broken...too numerous to mention.

meatpile

11-15-06, 04:58 PM

Ya'lls ability to lob insults at Collin are as lame as this ******ry (http://www.thisboardrocks.com/forum/showthread.php?t=99641).

Freakshow

11-15-06, 04:59 PM

TSO kicks ass. I'll take that as a compliment. :ylsuper:

sdplusbeauty

11-16-06, 08:56 PM

Thanks for your advice. All of the lingo sounds like a foreign language to me. I think that I need to do more research.

meatpile

11-17-06, 07:17 AM

Thanks for your advice. All of the lingo sounds like a foreign language to me. I think that I need to do more research.

What's foreign language about how everyone said 'keep renting'?

Iron9er

12-02-06, 04:52 PM

Yeah, I think they made it simple for you. You're not ready to buy. Save some money and get your credit straight then go for it.