I looked a new 1 bedroom/1 bath condo here in Folsom. Only 179k (has come down some from when they were first built a year ago is brand new). 800 square feet. I can afford the monthly amounts, would be very careful with the utilities, mello roos are 33/month, I forget the hoa's around 150 I think. I am interested in it but do I do it?
For a long time I was saying I wanted a 2 bed 2 bath but at the current prices in CA I may never be able to afford that in a house, condo or town house. So I am seriously thinking about it. What do you guys think? I know RE is a good investment, but is it aworth it on a one bedroom condo? It has everything I was looking for in a condo/town house but it does not have a garage, just covered parking. I can live with that. At least it has the washer/dryer set up that one was my one other requirement.
Do I or don't i? Looking for Advice!!
December 31st, 2006 at 04:24 am
December 31st, 2006 at 04:28 am 1167539314
If you can realistically swing it and you really want it then go for it! If you are taking a risk that is sizable then I would advise not taking it! In the end YOU have to decide.
December 31st, 2006 at 05:32 am 1167543178
Find out what the HOA is precisely. Also remember that you will need to pay taxes, insurance, etc. If you can talk to your neighbors, that would be helpful.
You need to do some more research before you pull the trigger. You can make a decision with a bit less emotion.
December 31st, 2006 at 05:35 am 1167543337
December 31st, 2006 at 06:07 am 1167545226
December 31st, 2006 at 06:16 am 1167545818
December 31st, 2006 at 06:48 am 1167547724
December 31st, 2006 at 07:45 am 1167551138
December 31st, 2006 at 09:59 am 1167559181
If you bought the one bedroom you'll most likely pay for it alone...
With a 2 bedroom purchase you could always get a room-mate - however you still need to be able to swing ALL the costs by yourself if you are ever w/o the roomie.
The unit you are considering - has it been occupied before? What are the rest of the units in the complex doing? Mostly empty? Mostly filled? Anybody reselling already?? Why? Why not?
Talk to the neighbor advice is always good. Hang out in the parking lot and watch traffic flows at evening and morning times. Check out the neighborhood for groceries and other necessary shopping places. Even if you don't have kiddos what about the school system and crime rates? Factory or traffic or night noises?
Down Payment? Closing Costs? Utilities Deposit fees? House taxes? House insurance? Utilities? Home Owners Association Fees? Payments? PMI? Commute times and gasoline and wear and tear on vehicle to ???STEADY??? employment?
I'm all for home ownership over renting just take a systematic approach to it and be prepared for all the costs involved. Good luck to you. I'm w/Priceplus, only YOU will know when you're fully ready to jump in.
December 31st, 2006 at 03:38 pm 1167579504
December 31st, 2006 at 04:08 pm 1167581309
On the flip side our condo saved us over $1k/month than to rent the same place. Sacramento does not have this same issues (rents costing more than to buy). For this reason it is a little different than our condo in san jose. Be careful and only buy if you would be willing to wait a few year during a downturn. You could be better off renting longer and waiting out to see where prices bottom out. A downturn may happen but I Feel bullish that it would just be a dip in the cycle. Frankly I don't expect prices to fall much more. You don't know how many people I know in the Bay SALIVATING over the fact Sacramento values have dropped, they are waiting to move in in droves still and push prices back up. As long as the Bay is insane Sacramento will have high values. It is NOT slowing down over there so that is why I don't expect it to drop much farther.
Mella roos is bonds for roads and such. Either the builder shoulders it and charges you more for the house, or you shoulder it. We pay $1k/year mella roos, added to our property tax bill. IT is common in new construction areas in sacramento area. Almost all new consturction passes mella roos to the buyers.
Good Luck to whatever you decide. Our condo had only 1 parking spot (3 bedrooms - and 2 adults!!!) and no washer dryer but we got such a good deal as a result and was easy to sell in such a crazy market. IF I had to live there the rest of my life I would have been happy. HAppy just to own a piece of real estate in a crazy market. I REALLY enjoyed not having a yard to care for too! Anyway, sounds like you found a good place. If you can truly afford it it can be the first step in a property ladder for you. You just might have to be patient and wait out this slow down is all. Overall don't buy it if you don't think it is a better deal than your rent, and you would be sick of it in a few years - only you know that.
Taking a gamble is frankly the only way to really make it in such a high COL area. & that is why I say go for it. The people I know renting in Cali are NOT getting ahead, the people who started in small condos and moved up have done quite well. Everyone I can think of who had a small condo to start had a house withing 2-3 years. With the downturn it may take you longer, but if you are in the market you can save to move up and if condo values fall so will house values. IT is good to get your foot in.
Plus have you considered income tax benefits?
Good Luck!
January 1st, 2007 at 02:33 am 1167618825