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Full Circle

June 4th, 2009 at 02:16 pm

So I've been house hunting for a couple months now, mostly because the condo I've been renting from was going through foreclosure. The manager called it "loan modification," but the paperwork I was served with said foreclosure. I think I'll believe the courts.

Anyway that notice sent me from wanting to buy the condo we're in, to buying another condo in the same complex, to looking at any condo, to deciding I don't really like many condos, to finding 2 houses I like. So when DH gets home, we were going to look at our top 2 houses and decide if we want either one of them.

However yesterday I get a call from our property manager saying that the loan modification fell through and they are now doing a short sale. I believe she said they were approved for 90K and were looking to go even lower to 80K. As the current tenant we get first 'dibs' on the condo. Well this just brings us back to square one! So now DH and I have to decide if we should get one of the houses we liked or the condo we are currently in.

Pros of the Condo:
1. Half the price (80 or 90K vs 160)
2. We wouldn't have to move
3. We LOVE the location, it's really convenient.
4. We wouldn't have to worry about yard work or anything like that.
5. It might be easier to rent out.
6. If something goes wrong with the outside the HOA has to fix it.

Cons of the Condo:
1. It doesn't qualify for VA loans, so we'd have to have a down payment and last time I called it was a ridiculous 25%.
2. We'd have to pay HOA fees FOREVER, and it's $300+ a month.
3. When we sell it there are a LOT of condos in this area, so it will probably be pretty competitive.

Pros of a House:
1. It would be ours completely and fully.
2. We should be able to get VA loans and not have to put any money down.
3. Both houses are listed at 160, so the cost would be significantly more.
4. It could be a new start, the condo has been mine and my roommates, DH hasn't lived here yet. So that house would be "ours", the condo may still feel like "mine." Although I think I'd get over that quickly.

Cons of a House:
1. We'd be a little bit further from school and my friends, but closer to DH's work.
2. We'd have to buy all the fixings for a yard (mower, etc).
3. We have to worry about the outside and inside of the house.
4. We'd have to move.

So those are the main things I can think of right now. Any suggestions or thoughts?

1 Responses to “Full Circle”

  1. boomeyers Says:

    Wow! Tough call and it seems like the pressure is on. Buying the condo could mean you could rent it out when you want to move to a house, but then you will have the added responsibility of being a "landlord" too, along with taking care of your new home. However, not having to move is a big plus, especially if you like where you are and like your condo. If it is a great deal, it seems like it would be easier to buy your condo at a great deal and keep saving up for a house. What is the difference in payments between your rent and an actually mortgage payment on the condo? If it is close to the same, you could live there and keep saving for a "dream house". You never know where you will get a job when you graduate, so living in a house would tie you down a little more as far as area too. Then when you buy a house, if you can't sell the condo, you do have the option to rent until you could sell, so you would'nt lose any money. Sorry! Just rambling out thoughts!

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