Is it better to get a loan and buy a condo or just get an apartment? I'm talking over a 10-12 year span?

Question

Condo and apartment are pretty much same size, both are in great locations. Would it just be a burden to have a mortgage on a condo and pay all of theose othe fees. I do want to own my own property one day, but its not a huge deal if I don't b/c I don't plan on getting married or anything. Any suggestions are appreciated.

Answer 1

You have to do the math. Compare the cost of owning: mortgage payments, taxes, condo fees, maintenance, utilities. Apartment rent cost are: rent, increases in rent, utilities.
If you have to pay real estate taxes, either separately or as a part of the condo fees, the taxes will probably go up faster than rent increases. I know from personal experience.
If you own a condo, the value may increase, but if you sell, you have to pay a realtor, pay transfer taxes, possibly pay capital gains tax.
If you are able to save money while renting, you can use earnings on savings to offset the cost of the rent.
If you build up equity by buying a condo, you tie up your money and do not earn anything on that money, beyond the alleged increase in value.
I own a condo. I made it work for me by paying off the mortgage in four years. I have owned my condo for 18 years. So, I don't have rent or mortgage payments...just those !!!!!!! real estate taxes and condo fees.

Answer 2

Apartments give you flexibility and sometimes add stuff into the rent so you don't have certain bills (here I don't pay for heat or trash or water-- it's figured into the rent).

If you're going to stay that long (10-12 years), the equity built up and the general trend toward increasing value may make buying a condo or small house attractive...when you sell you make some money on it.

So it's good either way.

Answer 3

For that time span, you will almost always do better by buying. That's more than long enough to weather any real estate "bubble burst" and still come out ahead. Compare your costs carefully. You may be surprised that your monthly outgoings are lower with a mortgage over time than with renting, especially when you add in the tax benefit of owning, i.e. the mortgage interest and property tax deductions. You may also be able to exclude all or part of the gain on sale and that will have MASSIVE tax savings tied to it.

Answer 4

Renting an apartment is like throwing money away. Ive been doing it for 5 years and I really hate it. If your credit is good enough I say go for the condo. If you own your own property you can sell it if you need to down the road. Also most apartments dont let you change carpet or paint walls. You would have more freedom to decorate as you wish.

Answer 5

I would buy the condo. It will go up in value and will develop equity. Paying rent just lines the pockets of your landlord.

Answer 6

because you've accomplished a aspect of activity protection and characteristic a good credit status - it may be smart to make investments in a apartment. on the top of many years, you've got some fairness and unlike lease - a minimum of something to exhibit on you funds. also its a good tax write off (personal loan & loan prices & insurance are Tax Deductible) attempt that with lease.

Answer 7

its almost always better to buy than rent if you can swing it. You build equity if you own, whereas if you rent all you do is pay the rent, its gone money.