August 30, 2002
All right, I'm going
All right, I'm going to do some thinking aloud here about what I could do about my condo.I could buy it. I'd probably get a decent price. I'd have to delay getting my piano perhaps, or maybe not. I'd be here a bit more longer term, which I'm not entirely comfortable with. I liked the idea of being here for the conclusion of my lease, maybe a bit longer, while I looked for another place that I might like even more. But I could buy this place and be here a bit longer than that and probably be mostly content. I like it - it's spacious, has A/C, I could add a fireplace and buy new appliances... I don't like the location so much because it's so much of a trial getting into town. But I feel better than neutral about it.
I could not buy it and just ignore everything. I'd be dealing with a lot of pain, and then I'd either get a new owner that would definitely want me to move out at the end of the year, or would raise my rent significantly, or the owner would try and bribe me to move out early anyway. I suppose there is a chance he would sell it immediately to someone that would love me and wouldn't raise my rates, but I just don't feel like I could count on that. It seems like a lot of pressure. However, I could do it and assuming I'd be okay with moving next June, I could buy my piano still.
I could buy it with the intention of selling it in the short term, which means I'd have to be pretty damn comfortable with my buying price and the ability to clear money after flipping it.
I could buy it with the intention of keeping it and still moving in the short term, only to rent it out. If I did this, I don't think I'd be able to show enough income to be able to handle two mortgage payments at once. First, I'd need to feel comfortable that I could charge high enough rent that ten months of it would pay a year's mortgage+homeowners. Second, I'd need to guarantee that I had rental income before I qualified for the new mortgage. While it's possible to buy a house quickly after renting it (before the tenant moves in), this probably means that I'd have to rent it, move out to another rental property, and then I'd basically be back where I started except owning an investment property, still looking for a property to buy. In other words, two moves before I'm settled.
Finally, I could buy something else, something that I really love. I was hoping to put this off into the semi-distant future while I had a nice stable place that I wouldn't have to think about, but it looks like that's not to be.
- find out what mortgage I could do (pre-qualify)
- find out more specifics on how the market is doing here in terms of resale opportunities
- Compare mortage price with comparable rent.
- Talk to Dad. he knows everything.