So my wife and I are thinking about selling our 3-BR house in the suburbs and buying a condo. The main reason for this would be economic: I currently have a +45 minute rush hour commute each way to work (sometimes more on bad traffic days), which I hate. My wife's commute is shorter (about 20 mins each way), but we both have to pay bridge tolls and the $4 gas adds up.

So there is a condo for sale in a nice building that is literally a 2-minute walk from my office. The idea of rolling out of bed and walking to work is definitely appealing. I'd be able to sell one of my cars (my wife would still have to drive, but it would still be the same distance and no tolls).

A couple things though - the condo is only 1-BR, yet costs the same as my 3-BR detached ranch home in the burbs. My wife and I don't have kids, so a 1-BR is workable, but I'm worried about losing all that space. I've also never lived in a condo, so I'm not sure if I'd like being connected to my neighbors. I've also heard that some condos have lots of rules about what you can and can't do, so not sure if that might be a problem (I basically watch TV and play poker, so I doubt it). We do want to get a dog (condo allows pets), and being so close to work would be good since I could stop home on my lunch hour some days to feed/walk him etc.

Anyway, still unsure if this is a stupid idea or not. If there are any condo owners or anyone with advice about what to look for (I'm going to see the unit this Sat), I'd appreciate it!

This is obviously the best time to sell real estate, so you should do it.

Good time to buy though!

Yeah, I know this is a sucky time to sell, but I figured I could also maybe get a good deal on the condo due to the soft market. If my plan is to wait out the downturn before selling (definitely an option), I will not be moving anytime soon. I'm expecting my house to depreciate further over the upcoming year.

Mainly interested in the condo vs. house issue, as I know selling my house won't be a pleasant prospect in this market.

I would use some of your existing spare bedrooms to open up a home casino.

Your an Idiot, it is the best time to buy not sell

If you have to start an OOT thread about it, then you aren't ready.

Read a book called something like buying condos for dummies to figure out what mysterious rules condos might have. Find out specifically what rules this condo would have. Find out if you need a real estate attorney.

You will save so much money in the condo it will shock you. Less for utilities, insurance, repairs, lawn care, etc, etc. The gas, the tolls: In a couple of years you'll save a huge bundle if you don't splurge. The house/condo price is a wash because both are devalued right now. If you don't mind less space and can discipline yourselves to save I'd do it.

I've owned a 1bd/1bath condo for almost 2 years now and I like it a lot. No yard work or other exterior maintenance is a huge plus. The smaller space issue is subjective but I don't mind, and it keeps me from collecting a lot of junk and is easier on the wallet to furnish with quality pieces. Also keeps the electricity down as I have not had an electric bill over $70 since I've lived here.

I did a lot of searching before purchasing my place and something I thought was a big dealbreaker are the HOA fees. Some units at the same price as mine had more expensive HOA's that included less perks (mine includes cable and high speed internet) and less building amenities.

The best part is the location and convenience. I usually never drive on the weekends and can walk to grocery stores, restaurants, pubs, bookstores, etc. I used to use public transport and wouldn't drive for about a week at a time during that period until I changed jobs. Now I have a ~15 minute commute that goes against rush hours so it is painless.

The main disadvantage I hear of is less appreciation in some cases, and they tend to sit on the market longer when it is time to sell. It's worth it to me for the amount of time it saves each day. I'd much rather have an extra 2 hours/day during the week that is not spent commuting than a few thousand dollars over the years.

You obviously know little about real estate.

1: Buy condo.
2: Condo instantly begins decreasing in value until real estate market bottoms out.
3: Monumental fail.

Way too many assumptions inherent in your criticism for your post to be worthwhile. Perhaps you can explain why the shift of exposure from a single family residence to a condo would be unwise?

Where do you live? Depending on that the smart play might be to sell your house as quickly as possible to avoid further depreciation. Then move into an apartment. In many places its much cheaper to rent than to own a condo. After this real estate thing bottoms out in a few years, you can go back to owning. If you like the apartment, buy a condo. If you miss the house, get another one of those.

Nah. I'm not worthwhile enough.


But since you're kind of being an ass:

Sell house short + buy condo that will surely depreciate in value = burning money.

Slice it any way you want, Hillary...

If time was the major consideration then selling the house and buying the condo is the correct choice. Wasting two hours a day in a car is just bad. You said the major consideration is economic though. You will now have a monthly condo fee every month. Did you factor that into your math?

As for condo living I prefer it. Mostly because of location and lack of maintenance (no lawn / snow).

As has already been stated you might consider renting. I've been renting for the last 8 years because economically it makes more sense than buying. It really depends on too many factors that you didn't include but you shouldn't just dismiss the idea of renting.

I didnt say YOU are not worthwhile, but that your post has many (3 or 4 off the top of my head) assumptions that your snarky list doesn't address. The OP comes here asking for information to help him make an informed decision about a decision which will have an effect on his net worth of tens of thousands of dollars.

Housing markets are local. Do you know something about the OP's market that leads you to forecast lower condo prices for his market? Do you know anything about the prospective condo's pricing, and whether it is priced aggressively to sell? Condo prices do not always move lockstep with single family homes, but I was interested if you had anything helpful to add about recent price movements of condos vs SFH. The OP was asking about a sell decision AND a buy decision, at the same price range, so the decision should be based on the relative price movements of the 2 options.

Again, you make an assumption that he would get a relatively worse sales price than he will get when buying the condo. Why do you assume that he will get screwed at both ends, and is this assumption informed by anything?


Edit: Another question for 27. Is it a better time to buy or sell? From your first post, I assume you think it's a better time to sell. Can you explain why?

I don't have an opinion other than to say that I think going from a 3 BR to a 1 BR will be a huge pain for you. I don't think you'll realize how cramped you will be till you move in. Even if you get rid of lots of stuff, you'll probably still be looking around after you've moved in thinking "damn this is a lot smaller than I thought it would be." I can't imagine sharing a 1-BR with another person. I mean, back in college sure. But in my late 20s, I felt cramped in my 1 BR apt by myself, although I'm sure yours will be much bigger than mine was.

Are there 2 bathrooms? If it's a 1 BR/1 bath I'd keep looking. Man that would be tight for a couple, unless you're talking about real short term, like a year.

The size thing is an issue. When you say 1BR how many sq ft is it?

You have to factor in the lifestyle considerations here more than a lot of posters seem to be doing. The erasing of that commute is huge, as is the convenience factor of being in the urban environment. You can always figure out ways to get out of the city on the weekends, but there isn't much you can do to make your commute easier if you stay in the suburbs.

I do agree that this all goes out the window if you blow the cash you bank from this transaction. You will need to sock that away in an intelligently invested portfolio.

Since my guess is that you may need this money again in the next 3-5 years (if kids come into the picture, for example), I would avoid putting all of it in stocks, as we look to be in for an extended recession. Bonds are cheap right now (10 yr yields back above 4% today) and you can probably still make money being long commodities (although that's a lot riskier). Unless you are quite knowledgeable about investing though, I'd just get a financial planner and suck up the fee. Find someone you respect to provide you a reference.

AbreuTime makes a few valid points that address your post already. But, to add another point/question:

Why would holding on to the house be better? It should also loose value if the market is still in a decline just like the condo would. Wouldn't you end up about the same? (if you ignore moving costs and assume that condo prices and house prices track similarly)

I live with my girlfriend and her commute to work every day is +/- 15 minutes. I commute to NYC everyday via public transportation and door to door it is easily over an hour each way. I have been doing this for over 2 years now. Does it annoy you like it annoys me when the gf/wife comes home and talks about how tired they are while you had some jerkoff indian who smells like his ethnic food standing on top of you for your 45 minutes bus ride because he refuses to wait for the next bus and its standing room only? Maybe its just me though....

You can also rent out your house, particularly if you would have a positive cash flow. You could then hold on to it or sell it later on when the market is more in your favor. If you are interested in the condo, I would go ahead and buy now.

In general with condos, pay attention what kind of value you are getting with your maintenance fees.

Henry why is renting longterm (8+ years) economical vs. buying a condo for you?

He just can't afford to buy. Don't be mean and make him talk about how poor he is again.

It has to do with the market conditions of the type of property I'd be interested in. If you don't expect the property to appreciate in value then you are often better off renting while investing the funds that you'd have tied up in a home in other investments. I'm at the point where I'm considering buying again but purely out of emotional reasons. Financially it still makes no sense to buy.

http://forumserver.twoplustwo.com/sh...ad.php?t=45827

here is a cool little calculator for helping determine rent vs buy:

link

in can take a long time for buying to make sense, in lots of situations.

(from a pure numbers perspective)

a typical scenario for me looks something like:

rent for $1,200 (a 1 bedroom apt)
or buy a place for $375,000 (a 2 bedroom condo)

assume house appreciates at 5% annually
assume rent increases at 5%

depending on other inputs, the breakeven point is around 7 years

buy a 2 family and live in 1, ftw!