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  • buying a condo

    err
    Last edited by Financemd8155; 06-11-2021, 09:07 PM.

  • #2
    Where are you moving? Is that a net worth of + 50k or - $50k?

    If it’s Nashville (Davidson Co) or Williamson Co, next to Nashville proper, I wish you luck. Just met with a realtor yesterday and I think this market is crazier than California’s. Thinking about splitting my time between working out of home here and working in Mayfield, definitely cutting back from 7 days/wk (clients, please don’t freak out, iow).
    Last edited by jfoxcpacfp; 04-17-2021, 10:01 AM. Reason: TMI lol
    Our passion is protecting clients and others from predatory advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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    • #3
      What's your income

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      • #4
        new job = rent, no matter how secure you think it is. Is there a non compete? You really want to be driving 50 miles each way if you have to get a new job?
        Separately, I cant think of any area where you would break even after only 3-4 years, esp a condo which generally dont appreciate as much as a house. What are the HOA fees? etc etc.

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        • #5
          Add in any required HOA and/or maintenance fees. It can be very expensive depending on the condo.

          Add in the origination and other one-time nonrefundable fees for the mortgage.

          Annual property tax.

          Expected annual maintenance. If the condo is old look at the HVAC and water heater and whether it will last another 5 years. When is the last time the exterior has been painted?

          When you sell deduct 6% for realtor costs.

          Now compare the monthly fees.

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          • #6
            err
            Last edited by Financemd8155; 06-11-2021, 09:07 PM.

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            • #7
              If your horizon us 3-4 years, I think there is too much risk of losing value (esp with fixed costs of selling) to be worthwhile. Would also look into how long condos tend to sit on the market in this area and if you have a noncompete. If this job doesn’t turn out so great, would hate to have a condo weighing me to it.
              “. . . And the LORD spake, saying “First shalt thou take out the Holy 401k. Then shalt thou save to 20%, no more, no less. 20% shall be the number thou shalt save, and the number of the saving shall be 20%. 25% shalt thou not save, neither save thou 15%, excepting that thou then proceed to 20%. 30% is right out . . .””

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              • #8
                You’ve gotten good advice above. If you decide to go ahead and buy, check on any restrictions for subletting before you buy. At least, you’ll have income until you can sell if things don’t work out as planned.
                Our passion is protecting clients and others from predatory advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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                • #9
                  If you truly wish to sell in 3-4 years may be better to rent. If you want to live in it until you get a bigger house and then use it as a rental income property I would consider it.

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                  • #10
                    Most of the advice pointing to rent is spot on.
                    The drag on buying and selling in combination with the risk point to renting.

                    You have two unknowns:
                    • new job translates to wait 2 years.
                    • PSLF translates to wait 4 years (preferable)
                    Think how much better position you would be in.

                    Honestly, you seem to be giving in to want vs need. I know you are rationalizing with numbers, but only to assume risk you do not need. It greatly limits your options.

                    I would discourage you from buying a residence for a short period because you can afford it. Just not ready in a NYC suburb.

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                    • #11
                      Re NYC suburbs- People fleeing the city for the burbs tend to want to buy houses with their own yards, not condos. I guess the market also depends on how far from the city it is, train lines, and schools. I can tell you in the NJ counties close to the city, houses sell quickly and easily, condos do not.
                      I still say rent.

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