Sunday, May 18, 2008

The #1 Lesson I learned from the Housing Crash

Most of the stuff I write here is for entertainment value, or to just vent my anger and frustration at the corrupt and incompetent people we have running our economy and government.

However, If you only learn one thing from this blog, I want it to be this...

Never buy a condo as a primary residence!
& under no circumstances should you ever buy a one bedroom condo!

Trust me on this one, it will be the best advice you will ever get.

-If you are over the age of 62 it is alright to own a condo as a primary residence.
-It is alright to own a 2-bedroom condo as a second vacation home, but only if the monthly mortgage, taxes and carrying cost paid is less than or equal to equivalent rent in the area.


Anonymous said...

I live on Maui.
Recent new ocean front condo developments saw the 2 bedrooms go the fastest. So much so that in the 2nd building the developer took out 3 and 1 bedroom units and made them all 2 bedrooms.
Good advise to not buy a 1 bedroom.
Someone buying the unit from you will want a 2nd bedroom.

Anonymous said...

This is just ridiculous generic advice based solely on current market conditions, and not on life style considerations that many times can outpace the pitance that can be "earned" by considering one's residence as an "investment."

Condos are great for those who prefer not to spend their time doing house maintenance. A house is a box that sits out in the weather and rots if it is not constantly maintained. And don't even get me started on lawn/grounds maintenance. If you prefer not to do this type of work (and there is a LOT of this type of work to be done), or are in a position where you earn enough to have it done by others (and most condo maintenance fees are CHEAP when compared to the cost of having comparable work done on a private home), then a condo is for you.

Also, if you travel, and like the idea of shutting your door in the morning and not worrying if you come back the next day or the next month -- everything will be taken care of -- then a condo is for you.

If the nearly-impregnable security of a high rise building is important, then a condo is for you.

If living close-in to a metro center (or work), and not clogging the highways multiple times a day is important to you, then you may want to check out a condo.

Bottom line: A condo is a great tool for living. It allows one to focus one's energy and attention to other things besides house maintenance, and the return on investment on this one feature/advantage can be enormous.

As far as a 1 BR vs. 2 BR, I'd leave it up to the individual's wants and needs. If you can get by with a 1 BR, buy one. In a down market such as this, 1 BR's are cheap precisely because they are harder to rent. However, a 1 BR will usually have far lower maintenance fees and property taxes (as well as somewhat lower utility costs, etc.) than a two bedroom.


Don't take "advice" from someone who cannot spell the word.

Anonymous said...

What is so horrible about one bedroom condos?

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