| Need advice on what to do with my condo |
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daveman0720
Member
Cash: $ 2.60
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Joined: 04 Apr 2005
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| Need advice on what to do with my condo |
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Hello. I am 26 yrs old and own a condo. I bought it 2 1/2 yrs ago for $135k. I took out a home equity loan and currently owe $146k. Right now my condo is going for about $170-$175k. In my area prices are expected to drop about another 10% in the next two years which would bring my condo down to around $155k if this were to happen. I have a 5 yr arm and def dont see myself staying until year 5. Im debating on selling my place now cashing out and taking my profits or staying another two years and most likely be selling at a lower price. I just did a career change and am starting from scratch so I am making roughly $40k and am just breaking even with my bills. Would it be better for me to sell now and rent so I can save up money and hopefully jump back in the market in two more years when its flat or just hold on sell at a lower price and then either buy something else or maybe even rent then? I know this is ultimately my decision but what would you do if you were in my position? If I were to rent, I can take my profits which would be roughly $20k and invest that as well as save $500 a month. If I stay, I break even not saving anything. Thanks!
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Sun Oct 07, 2007 6:41 pm |
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Apollo
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Location: New York
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| Re: Need advice on what to do with my condo |
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Personally, I would sell now and take whatever I can in profits. The housing markets will continue to deteriorate and you are very likely to see the price of your condo to continue to fall.
Real home-value depreciation has not really filtered through yet but it is very likely what will happen over the next few months in order to sell excess inventory which is at all-time highs. Sellers have been reluctant to reduce prices significantly but soon they will be forced to do so which will drag down the value of houses and condos.
Since you don't plan to stay there that along to begin with my recommendation is to sell now and get the best price you can, take your profits, invest it and you said you can save $500 a month as well.
Rent now and if you want to purchase another house or condo wait until the housing market correction will force prices lower...you may be able to shop around during the second half of next year or the first half of 2009. You should find some good deals, I know many people who shop and will shop around at foreclosures to get some really good deal. Something you may waynt to look into. If you do make sure the house doesn't require any work and is good as it stands.
ARMs will start to roll over next year and many home-owners will be forced out of their homes as they won't be able to pay the higher mortgage payments and you could get a real good deal on a 3-5 year old property.
It is not smart to play it safe but it is safe to play it smart.
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Mon Oct 08, 2007 10:00 am |
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daveman0720
Member
Cash: $ 2.60
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Joined: 04 Apr 2005
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thanks for all the help....my old career was a full time realtor and now im doing it full time....i know the stats on all the locations in nj based on supply and demand and how many months it would take to sell all the inventory...i went to a seminar last week with an appraiser who is excellent and has always been right with where the real estate market is heading...we are just having a much needed correction that shouldve happened in 2001...so we are basically looking to go back to 2004 prices...at least in new jersey...my original reasoning for buying was to make a profit and i just dont want to see it go down the tubes
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Mon Oct 08, 2007 10:49 am |
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Apollo
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Cash: $ 73.85
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Joined: 10 Sep 2007
Location: New York
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Yes coaster, the housing-correction is by no means over and is very likely to last until the second-half of next year if not beyond that.
One thing to keep in mind:
Home price depreciation has not really showed up yet as seller are very reluctant to lower prices which is one thing that is needed in order to reduce record inventories.
That is a primary reason why the housing-correction has a long way to go.
It is not smart to play it safe but it is safe to play it smart.
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Mon Oct 08, 2007 12:34 pm |
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daveman0720
Member
Cash: $ 2.60
Posts: 12
Joined: 04 Apr 2005
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they are saying the housing market will not bottom out until 3rd quarter of 2009...so we do still have a ways to go...after that housing will be back to normal and should expect to see a 3% gain year over year...no more crazy appreciation anymore
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Mon Oct 08, 2007 12:49 pm |
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pf101
Senior Member
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Location: Portland, OR
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quote:
Originally posted by daveman0720
no more crazy appreciation anymore
At least not until next time...by which point people will have forgotten all about this time.[/i]
Personal Finance 101
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Mon Oct 08, 2007 3:11 pm |
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jazzfiles
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Joined: 21 Oct 2007
Location: USA
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| people who profited |
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people who profited on real estate where the ones who purchased around 5 years ago and sold last year,mortgage banks are on the verge of bankrupcy i dont see the situation improving any time soon, ive been told by many morgage lenders that prices will keep dropping to the point that houses in a few years will sell at the price of a luxury sedan,i kno a real estate millionaire yes jets boats exotic cars,lost everything including a Bank he had just oppenned ...with so many foreclosures available who is going to buy at full price??
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Sun Oct 21, 2007 5:58 am |
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