Apartment or Condo?

Question

Hi, I am a 19 year old college student and I am trying to decide if I should rent an apartment or buy a Condo. Right now I am living at home with my parents but would like to move out. I think that spending 600 dollars a month on rent is a a waste of money becuase I will never see the money again. However, I do not know that I am ready to own a Condo. My parents would help me pay the down payment and with a 30 year morgage my payments would be about 350 a month plus a 210/ mo HOA fee. The HOA fee includes heat, water, pool, landscaping. The complex is professionally managed. I do not know much about owning a condo, so any advice is appricated. Thanks!

Answer 1

So by owning you'd pay less than you'd pay by renting ($560 vs. $600)? If so, sounds like owning is the way to go, especially if property values are going up where ever you are. Like you pointed out, you get nothing out of renting, you get equity out of owning. The drawback would be not being able to call the manager when the sink's plugged, etc., but you learn how to take care of things like that by owning, and the sooner you start learning the better off you'll be.

Answer 2

It seems like buying might be right for you ...but please check the condo out. See how many are up for sale... see if there are any special assessments pending. A special assessment is a monthly amount that is tacked onto your normal monthly HOA fee for a specified amount of time. The special assessment monies are used to make a major repair or a complex renovation of a common area.These assessments can for last years ... so please check that out. Also read the bylaws and make sure you can live with the rules as they are enforceable in most cases. Most condo's attach some type of rider to your mortgage so that when you sell they WILL collect all back fines !

Check the financial health of the complex too they should have some cash reserves so they don't always have to set special assessments.

Also , please look into getting a upstairs unit..This one small detail will make your life in a condo much better. No matter how well built if you have a lower unit with someone upstairs from you will hear noise or could have water damage from them. Check on yahoo answers about noise questions there are real problems with upstairs neighbors! A unit near the pool is also a bad idea cause of the extra foot traffic and noise. I personally don't like units with car parking near them as you will always hear someone cranking up their car... but you will have to walk further with your groceries

As far as people saying you might not want to stay in the same place .. It's near your parents right and you probably attend school or work nearby...So rent or buy you are staying in the same area.

Resale can be tough .... but years from now you could rent it out and use your equity to buy a bigger home. Even in 5 years if you resale for what you paid ... you still saved some money.
Oh and make sure you get condo insurance ... it covers the "inside" of your unit and your possessions!

Answer 3

Buy the condo. It's going to cost you less than rent, and your parents may or may not make the same offer to you later on. Most people who stay renters their whole life blame not being ready to own - it's not a good time, their not ready to commit, they don't want to be tied down, etc.

People who argue against home ownership claim they don't want to be committed to living in one place, but that's bogus. You already know that if you decide to live somewhere else, you can rent the place out and still cover the mortgage. It's a built-in investment instead of throwing money out the window every month. And the best part is that you're getting an early start.

Age is an advantage to you, not a hindrance - you've got that much more time for the condo to appreciate in value.

For most people, real estate represents the greatest percentage of their net worth. This is a great opportunity for you - don't throw it away.

Answer 4

At 19 years old you should rent. Buying a condo will define where you live for a number of years. Who knows what the next three or four years may bring. Finish your education and you will probably be in a position to buy a nice house instead of a condo.

Condo's usually do not apprciate too much in value and are in many cases difficult to sell.

Consider a roomate in an apartment and cut your rent in half. You will have plenty of future opportunities to purchase property.

Answer 5

I would buy the condo. Given the financial side and the fact that a condo has the least amount of work involved. It is a great stepping stone and is bound to appreciate in value. A few years down the road when you are ready to step up it could be a great rental for you to hang on to and actually earn money.

Answer 6

Rent, for at least a year first. Just to be sure that you are ready. Owning real estate is a major commitment. As a college student with all of those burdens! It's likely to be too much pressure.

Go ahead and waste the money, call it the price of life experience.

Answer 7

Do you think you are ready??? Big responsibility at 19 do you really want to depend on your parents. They might want to use it over your head to CONTROL YOU. Do you want that, I know I didn't at 19.

SERIOUS THINKING TO DO.......