My wife and I are very actively looking to buy a house (condo), and we saw a place that was "acceptable" in a good location (Rancho Santa Margarita), small (800sq ft.), but the price was right (250k). My wife is not sure if we should make an offer - we've been looking since March and this is thus far the only one I thought was acceptable. This is a plunge for us, but at 250k I'm very comfortable with the pricing, and the interior can be customized according to my tastes. Currently the interior is plain w/ugly carpet (new).

The problem is that we had 8 months to shop and couldn't find anything, and the current rental is up for sale by the owner so we need to leave ASAP. Renting a similar place nearby (2bd/2ba) would be ~$1300/month, if I bought this place mortgage would be ~$1500/month, financially it makes total sense, but I'd like to hear from former renters who became home owners on their stories. Thanks!

 

Ouch. I hope I never have to move to CA. That's a terrible price (from where I am).

If it makes sense, though, what's holding you back? Go for it!

 

owning is always better than renting (you dont build equity when you rent). with a condo, you also get the benefit of an owner's association (check about dues) to tkae care of some tasks such as landscaping, garbge, water, etc. (you probably dont have to worry too much about snow removal).

be careful when customizing, if you are dealing with a realty/construction company you may be overcharged for "upgrades."

as well, talk to a mortgage professional about financing options. many times, different investors have odd requirements (credit, downpayment, insurance, etc.) when it comes to financing a condo.

 

If the location is good, go for it. Live there a few years, upgrade the place, and sell it. You will probably then have enough to put 20% down on a much better place -- basically use this as a launchpad into owning rather than renting. Your first house doesn't have to be ideal, it just has to be a) affordable and b) a reasonable investment.

 

hmm, is CA really that expensive??

 

those prices sound about right.. I'm amazed at scot on this board who buys houses for $30k

 

Mingster, how does the size compare to where you have been living? 800 Sq Ft is not very big and you may have a problem expanding it a condo. Otherwise, just adding 200 a month to own is a no-brainer. You should save that much in taxes without breaking a sweat, and then considering appreciation you are way ahead.
My advice is to make sure the place is insulated well enough for sound. Ask your (potential) neighbor if he will turn his stereo way up and see if you can hear it.
Also find out if the condo association has been building a reserve for any repairs/improvements they want to make. The condo fees could be too low, and a new roof for everybody just around the corner could make an assessment a possibility.
Last comment- I don't know your area at all, but in general, houses appreciate faster than condos, so if you can find a house for close to that price, you might be better off. Plus you can add on later, if you need more room.
Good luck.

 

Richard,

I'm currently renting a condo and Morris' advice is spot on.

Also, where are you currently looking? Still in Laguna Niguel?

I've got family that lives just off Marina Hills Drive. That's a spendy neighborhood and if you found something for $250k I'd snatch it up as long as it fits your family's needs.

 

Wow, in my little podunk college town $250k will get you a very nice 4000 sq ft brick home. My friend just bought a 4500 sq ft brick home, 4 car garage, private pond on 1.5 acres 5 br 4 bath for $290.

 

[QUOTE]Originally posted by S1999+1
Wow, in my little podunk college town $250k will get you a very nice 4000 sq ft brick home.