I am 24 years old single male and I live in Sacramento, CA. I am looking to buy a house or condo? Which would be the better option for me. I only plan to live in the Sacramento area for another 4 years. I guess I have a few questions.
Over the course of 4 years which option would be more cost efficient?
At the end of those 4 years which would be easier to sell?
Which property would have a greater monetary gain/loss?
What type of loan would be best for me in this type of situation?
2007-03-08 08:47:31 · 5 answers · asked by Half Man/Half Amazing 2 in Business & Finance ➔ Renting & Real Estate
I would look for a home before condo. Sacramento region condo's are not holding there value as much as SFR (Single Family Residence). You also have to take a extra hit to your interest rate for getting into a Condo than if you went through a SFR. Other concerns with Condo's over SFR are occupancy v renters (Investment owned). If the ratio's are to far into the renters than the property will not hold its value and banks/lenders will not lend on the property (most will not). Overall you would be better off with a SFR over a Condo for value and equity gain which is the main reason we all buy homes.
Which would be easier to sell? SFR over Condo because usually SFR's dont have HOA dues and again the interest rate factor.
Best type of loan?
If you are going 100% Financing than 5/1 arm interest only. But make sure you are really going to leave the property in 5 years. If not than take the 30 year fix interest only product because its interest only for the first 10 years than blends into the full 30 year fix in year 11-30. Reason you dont know how your life will change in 4-5 years.
What type of property sell's better?
3/2 (3 bedroom/2 baths) SFR are always the best property for buyers and will always sell faster. You can look for 3/1 but be prepared to install another bath. Next property would be 2/2 SFR great for first time homebuyers (FTHB's) and first time familys.
School District is also a great consideration when looking into buying property.
This should get you started if you need more information or advice my email is always open. If you want a First Time Home Buyers Guide send me a quick email and I will pdf it to you.
2007-03-10 15:36:59 · answer #1 · answered by Openthathouse.com 4 · 0⤊ 0⤋
I believe that buyin a house would be the better cost efficiency. It would be easier to sell and have a greater appreciation than a condo.
If you are a first time buyer and you have good credit, go to your local bank or let the real estate agent recommend a loan agent. You can also apply under HUD as a first time buyer.
The condo has some not necessarily bad features; you end up having to pay an association fee as well as upkeep fees every month. These can amount to a few hundred dollars extra that you don't ever recoup.
2007-03-08 16:53:14 · answer #2 · answered by vgordon_90 5 · 0⤊ 0⤋
Always get a conventional home loan. Make sure you star the word (Conventional) and refuse other offers they will come up with that let's you buy more than you can afford. A home is always a better investment than a condo. Besides buying the condo, you will pay monthly fees for maintenance and parking. Sometimes as one monthly charge so the parking cost can be hidden from you. This keeps you from having to paint, mow, and do other outside maintenance or take care of cleaning hallways and steps. Condo fees can often be almost as much as your mortgage payment. If you are not a go getter and do not want to clean, mow, paint, and do upkeep on your place, then go ahead with a condo. If you don't mind a lot of work (yes - home ownership requires a lot of work) a private home is always and will always be a better investment as long as you do the maintenance and upkeep. Let these things go and your potential for selling price plummets.
2007-03-08 17:03:48 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Location, location, location! Do some research and find out which area is developing the fastest, (or which areas are appreciating the fastest). A condo in a booming area might increase in value faster than a single family home in a less desirable neighborhood. Look at percentage of increases for each.
And, for only four years, I'd highly recommend a variable interest loan with the first increase to be as far out as you can negotiate it, (preferably 4 years!).
2007-03-08 16:54:51 · answer #4 · answered by love_2b_curious 6 · 0⤊ 0⤋
The central valley is one of the most overpriced regions in the country right now.
Nice screen name.
2007-03-08 16:57:51 · answer #5 · answered by Cardinal Rule 3 · 0⤊ 0⤋