Is it the right time?

Question

I'm a first time home buyer.We are planning to buy a new 2 bedroom condominium in the downtown burbank which is costing around $650K,we can afford the down payment.But i dont know much abt the housing prices here in LA,Is'nt it a bit expensive for a 2 bedroom condo with 1050sqft.But it is new & under construction.we liked it.we r planning to buy the home as an investment purpose & we r planning it give it for rent,Do u think is it the right time,EVerybody says the housing s going to drop down for 2 more years,Any suggestion plzzz.

Also how can i bargain the price with the builder.and for how much can i ask him to negotiate.Both me and my husband are new to this field.
Do i have any advantages as the first time home buyer.

Answer 1

If you have not signed any papers yet, go to www.realtor.com and look up condos in your area. This site should have pictures and prices of the condos. Also, look up houses in your area. If you are bound and determined on a condo, try to find 3-4 that you like on the site. Add the asking price of these, then get an average. Is it in line? If the market is weak for condos in your area, you might be able to get up to 20% off the asking price of your desired condo. Take the asking price substract 20% and make the offer. BEFORE YOU BUY A CONDO, MAKE SURE YOU KNOW WHAT THE CONDO ASSOCIATION FEES WILL BE AND HOW AND WHEN THEN CAN BE RAISED. SOME BUILDERS HAVE IN THE CONTRACT THAT THEY AND THEIR ASSOCIATES ARE THE ONLY 1s WHO CAN DO REPAIRS AND THEY JACK UP THE PRICES. BE VERY CAREFUL AND GOOD LUCK.

Answer 2

I work as a property appraiserfor an Real Estate Appraisal Company in Los Angeles county. $650,000 is high for Burbank, even for a new condo. Something else to consider is that typically condos see a greater drop in value than single family homes during a market adjustment and there has been a huge increase in the number of new condo projects being built in the Burbank area and most other areas of Southern California. Prices are dropping as we speak and will most likely continue to drop over the next 18 to 36 months, maybe longer. There are many foreclosures looming based on the high number of interest only and adjustable rate mortgages out there. You should take the advice of the other respondents and maybe wait a little while and watch the market. The other issue is that rents are going to increase over the same period partly based on the demand that will be created by all the displaced homeowners that have to move out of foreclosed properties and can't buy into something else. As far as bargaining on the price of the condo, you need the whole project to be completed and the builder needs to be sitting on actual inventory of completed units that have not sold. Then you have some bargaining room. We are just at the tip of the iceberg with this decrease in property values, be patient if possible. The only reason to absolutely buy right now is if you have to invest for tax purposes of some sort. Good luck. Hope this helps.

Answer 3

If you buy now you will just see price drop a lot more, it is worst than buying a computer and wacthing the add next month and see a faster computer for half the cost.

In Burbank a few years ago a condo off the 134 and 5 would be going for the high 100k and at one point mid to low 100k. I am sure they be back down to mid 100k and soon.

Hear is why the house bubble was made and it is now breaking big time. check out this web site. stay out of debit and save your time will be hear soon.

http://www.breakingbubble.com/index.htm

Answer 4

Buying new can be tricky sometimes, especially if your whole point is to turn a profit. An older home has more of a possibility of remodel to increase value, particularly if you are willing and able to do it yourself. Newer homes have less possibility of necessary repairs (such as heating, air conditioning, plumbing, electrical, roofing, etc). I

It’s very important to know how long you will need to own and live in a place in order to maximize your profit and how long you are willing to own the property. For example, if you live in (not just own) a place for 2 years of the past 5 before you sell you will be exempt from the federal capital gains tax. If you are renting the property for all 5 years prior to when you sell you will get stuck with capital gains. You can solve that problem by simply making sure you live in it for the two years directly prior to selling. Also, buying a house as "owner occupancy" can often qualify you for lower interest rates, but this means that you are agreeing to not rent the home out.

Before you buy a place intending to rent it out you need to consider several things.

1. If the property went un-rented for any period of time would I be able to afford to pay the mortgage on top of my own living expenses and for how long?

2. How much would I need to charge as rent in order to cover my mortgage on the property, my landlord's insurance, and my property taxes? Then compare this amount to how much similar properties are renting for in the area.

3. Would I be better off renting it or living in it? Remember, some banks will offer lower rates for owner occupancy.

4. If you rent a place you might not be able to claim your yearly interest paid on the property on your income taxes, but if you live in it you can always claim the interest.

5. If my renters damage the property beyond required damage deposit or something like the plumbing has problems would I be able to fix it or afford to hire someone to fix it.

Real estate is usually a pretty safe investment; rarely does housing go down significantly. You will probably turn a profit; it just depends on how much. I would only purchase a home, however, that I could afford to live in myself, not one I knew that I would need to rent out in order to cover my payments.

Answer 5

No. Right now is probably the worst time to buy.
Wait a year. The market will go down.
What goes up, must come down.
I live in Orange County, so I am actually right by you.

Answer 6

i hope it is the right time as the housing sector in the down trend.

Answer 7

Its a big problem.get help to keep the marriage together.ur marriage is only based on orgasms and property no love.