2012-02-10 @ admin
People who are considering purchasing need to think about the real cost. By the time you add in condo fees, taxes, and real estate transaction costs, owning may be significantly more expensive than renting. The days of large value increases won’t come back for some time.
It’s stupid to purchase without a down payment, and it’s also stupid to loan people money who don’t have a down payment. Why is that still happening?
On the other hand, if you have the money, and have done the cost analysis, home ownership has a lot of intangible benefits – the best locations and nicest properties are often for sale, not rent. WIth the record-low interest rates, your monthly payments might not be much higher than rent. Also, you have a bigger stake in the property, and the community, if you own.
Something not mentioned… is the idea of purchasing a multi-family house. A house with a basement apt. A legal basement apt not just a basement with a door. Check with DCRA for what is defined as legal in DC. Purchasing home in NY like this or a home that can be turned into a legal basement unit provides a lot especially if your going to live in the other unit. As the landlord your right there on the property and can oversee what is going on with the house as a whole. The basement unit will take off cost of your mortgage and allow you to save money. Once again the 3 tenants of real estate, location, location, location. If you wouldn’t want to live in that neighborhood then why would you buy there.