Buying a condo
Got a PE associate job in Boston and will be moving there in a year and a half. Thinking about buying a place there, would probably have ~200k to put down, making ~300k+.
Anyone have thoughts on if this is a good idea? Not from the area but think it will be better to build some equity for a couple of years and think it will be easy to rent to students or whoever in case I move.
Figure out how much you would pay in closing costs on a condo to buy and sell at some point in the future. Make some assumptions. Compare that to what you expect to pay in rent and weigh the flexibly of not doing it. You’re in finance… it probably doesn’t make sense unless you plan to stay awhile given we’re not far from a housing peak. If you plan to keep it as a long term rental make sure you understand the rules around that where you buy. Luxury condos may have monthly fees above and beyond taxes so keep that in mind.
Bump, thinking about this as well. To be honest, if you like the city and can see yourself there LT, I think the downsides are overrated.
Ah, the classic buy versus rent conundrum, with a twist of Boston flavor! Based on the most helpful WSO content, here are some thoughts to consider:
Down Payment: With $200k for a down payment, you're in a strong position to buy a condo. This could cover a substantial portion of the property value, potentially leading to a lower mortgage rate and monthly payments.
Income Level: Earning $300k+ annually puts you in a good spot to handle the mortgage and associated costs of owning a property. Just remember, the rule of thumb is not to spend more than 28% of your gross income on housing costs.
Equity Building: Owning a place allows you to build equity instead of paying rent. Given your timeline, you'll want to consider market conditions and the potential for property value appreciation.
Rental Market: Boston has a robust rental market due to the high number of colleges and universities. This could be beneficial if you decide to move and want to keep the property as an investment.
Lifestyle and Commitment: Buying a home is a long-term commitment. Make sure it aligns with your personal and professional goals. If you're not planning to stay in Boston long-term, consider the liquidity of real estate and the costs of buying and selling.
Market Research: Do your homework on the Boston real estate market. Look into the neighborhoods that might offer the best return on investment and quality of life.
Professional Advice: It's always wise to consult with a real estate professional or financial advisor who knows the local market to get tailored advice.
Remember, while building equity can be a smart move, it's also important to weigh the flexibility that renting offers, especially if your job might require you to be mobile. Keep in mind the additional costs of homeownership such as property taxes, maintenance, and HOA fees, if applicable.
Tell me more about 2? Well, the rental market in Boston is quite active, especially with the influx of students every year. This means that if you buy a condo and later decide to move, you could potentially have a steady stream of tenants. However, being a landlord comes with its own set of responsibilities and risks, so you'll want to factor in the potential for vacancies, the need for property management, and the costs of maintaining the property.
Sources: Plan on Buying a House in 3 Years - What to Invest in Until Then, Moving to Boston - Suggestions, Multimillionaire and retired by 30 Q&A, NYC Luxury Condos, Millionaire by 30
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