Should I rent an apartment or buy a condo or duplex?

Question

My boyfriend and I are interested in getting a new place together in a few months. We are able to pay about $1000 in rent and have found some nice 2 bedroom places that are in our price range. We will more than likely will be living there for a few years, until we decide to buy a home. We don't want to be throwing our money away by renting a place, but we are both new to renting and buying. My credit score is higher than his probably about a 690. We trying to decide while we have some offers available....HELP!!!!!

My boyfriend and i have been together for two years and have been considering getting married. We live in suburban chicago.

Answer 1

buy buy buy! Its the best way to go. you can then sell it in 5 10 years and use the money you put into it to make a down payment on something bigger and or your home

Answer 2

I would do some math.

The first question is, how long have you and your boyfriend been going out? If it's been at least a couple years, I would consider buying a place. To be dismal, stuff happens. You could move out together and find that you aren't happy. It does happen. Even if you've been together for years, you might realize that you can't live together. If you break up, then you could end up financially screwed. Unless you are recognized as common law, then you likely will have to battle out for parts of the house - essentially both of you will end up losing.

I would rent together for a year, and see how your relationship progresses. I do think renting is a waste of money, but I've been renting with my fiance for 3 years now. It's sick to think about all the money we've spent on rent between the two of us.

If you do choose to rent, make sure that you both sign the lease. This way if, heaven forbid, you break up, then each of you is still responsible for 50% of the rent (ie: he disappears off the face of the planet, you're not completely faulted).

You should also consider how much money you have saved already. If you have enough money for a sizable downpayment, then I would consider buying a house.

Just stick with the renting for now, try to rent somewhere cheaper so you can at least save some money for when you decide to buy. Good luck.

Answer 3

2

Answer 4

I think you should buy. Trust me I did out the math. Let's say you rent an apartment. It'll be a few hundred less than a mortgage. Let's say you a good saver and invest the money. You won't make enough money to justify the loss you are paying in rent. Let's face it; most people won't save the money. Remember the house is an asset which will go up in value over time. Interest rates are low enough to justify it.

A 690 is not a great score. If you were married, they would actually take the lower of the 2 scores. I don't think you would qualify to buy a duplex. The price would be out of your range. You might get by with a condo. Don't forget the condo fees when calculating how much house you can afford. If you decide to buy a house, you should buy it in your name to get a lower interest rate. His lower score will drag you down otherwise.

I don't want to bring this up but it is needed. You are not married. You need to set up legal contract for ownership of the house. I've had friends who were in similar situations that broke up. One party gets the house; the other is gets nothing despite have paid half the bills. Usually, it's the girl who ends up keeping the house :0

My suggestion would be to live in an apartment as planned. You'll build up more of a down payment. It'll give you time to build up your credit. Just pay bills on time and don't cancel any credit cards (this actually lowers your score). Buy a used car and pay the payments on time to build up score. Focus on your score because it is higher to begin with. If things work out between you and him, buy the house in your name before you get married. Set up a contract after the loan has been approved to protect him and yourself. Have a ball. Good luck to you.

Answer 5

It all really depends on where you live. A condo will have tax advantages for the 2 of you. Think about putting at least 20% down. Most lenders now days are looking for that large of a down. Some less. But i would recommend at least 20% down. Then you will need to add the property taxes. The association fees. And of course the loan payment. If you where to purchase a duplex. You now become the landlord. And your new tenants are paying on your mortgage. A duplex will not appreciate much. And in today's market nor will a condo. But in the long run the duplex will pay off your loan with tenants help. In what ever decision you make i hope you all the best.

Answer 6

It costs some money to buy or sell a house (or condo), so you need to consider that in making your decision. I've heard that a good rule of thumb is to buy if you are planning to live there 5+ years, and otherwise rent. However, that would depend on the local market, because I bought a condo and accidentally made a fair bit of money only owning it for a year and a half.

Try going to mortgage companies and seeing what they will pre-approve you for at what rates to get an idea of what you would be allowed to borrow and how much interest you'd be paying vs principle, so you can keep that in mind while you make your decision.

Answer 7

Before you buy, MAKE SURE YOU UNDERSTAND THESE 2 THINGS:

1) Fixed rate
2) Adjustable

Lots of people right now are in the Shiii*T due to adjustable rates. With a fixed rate...your monthly payment will pretty much stay at the same amount for 30 yrs (if that is the time of the loan you get). Adjustable...
say if your payment started at $1,700 or so...
it can sky rocket, which is my present situation. :( My payment went up by $1,000!!! This is the deal my husband went into and wanted, so now we are paying up the A*s! We have been lucky to keep up with the increase, but many people HAVE NOT. This is why you hear about so many foreclosures. It is really really SAD!!!

If you are gonna buy a condo...
don't forget about HOMEOWNERS ASSOCIATION FEES. They vary per building. Someplace you can pay around $100 and all the way to $500+, just depends where you buy the place. Make sure you look into that too, ok.

I wish we had a BETTER Realtor that was looking for our best interest when we bought and sold some properties. But since HE was looking for his best interest...we got screwed. ANother thing...
go with a Realtor with a good reputation. I now believe that the Realtor can make you or break you. Have fam or friends recommend if possible, someone they have had a good experience with and gave really good advice.

Good luck!

Answer 8

Definitely buy since payment for the mortgage will be almost the same as rent. Maybe $500 more. But you will be paying for your own place. However, getting a mortgage right now is hard. Now banks not only looking at credit scores, but at income and many other facts. This happened when prices on the houses were low, everybody went to get mortgages. Then bank raised percentages and people weren't able to pay money back. But definitely try.

Answer 9

In some states renters are protected by law from the owners. In Massachusetts for example, trash removal is the responsibility of the landlord, as is the water bill, the land taxes, and upkeep and repair (including kitchen appliances). Renting is simply an alternate way of living - it's not throwing your money away.
Condos typically have a managment that takes care of things like repairs, but you pay a monthly fee for this. Parking might be extra, and there may be other fees for an in house gym or pool or whatever. Deals vary quite a bit, so do your research. And good luck!

Answer 10

For now I would rent an apartment.
I don't recommend buying anything together as you are not married and can be a bit risky.
also if you buy a condo there are many things to consider
maintenance fees, association fees...Blah blah
better to rent a small apartment, save some money get a higher credit score and see what happens with the relationship.
Much Luck to you

Answer 11

You didnt mention what state/metro area your in. If your planning on buying, just buy a house. Dont get a duplex, If your planning on living in half the duplex and renting the other half out, you will have close neighbors, and you might as well rent. Same with buying a "condo" Condo is just a name for a high priced apartment complex.

If your gonna buy, just make sure you buy a HOUSE. If your gonna go live in a duplex or "condo" just rent one. Its not worth buying because of neighbor/privacy issues, condo fees etc.