Condo market in Mira Mesa

[bsrsharma]

If you want to own a condo as a place to live for a long time, buying when it is cheaper than renting is a good time. It may not be the absolute lowest, but that doesn’t matter in the long run. Remember, you are borrowing and paying back in what is likely to be very weak $ in 10-15 years. More benefit when you count tax benefit.

[HLS]

If you are going to pay cash for a condo, you can buy whatever you want.
If you plan on getting a loan, it may be impossible to get one.

Many condo associations are insolvent. Some have too many rental units. There are other reasons why they cannot be financed per FNMA guidelines.
It doesn’t matter if you are putting 5% down or 80% down.

Not all condos are FHA approved.

One bad thing about condo loans is that it can cost $100-$200 to get the questions answered for the FNMA guidelines, and once the underwriter sees the answers the loan is declined, and that is before paying for an appraisal..

There is a difference between a qualified buyer and a qualified property.

[HLS]

If you are going to pay cash for a condo, you can buy whatever you want.
If you plan on getting a loan, it may be impossible to get one.

Many condo associations are insolvent. Some have too many rental units. There are other reasons why they cannot be financed per FNMA guidelines.
It doesn’t matter if you are putting 5% down or 80% down.

Not all condos are FHA approved.

One bad thing about condo loans is that it can cost $100-$200 to get the questions answered for the FNMA guidelines, and once the underwriter sees the answers the loan is declined, and that is before paying for an appraisal..

There is a difference between a qualified buyer and a qualified property.

[HLS]

If you are going to pay cash for a condo, you can buy whatever you want.
If you plan on getting a loan, it may be impossible to get one.

Many condo associations are insolvent. Some have too many rental units. There are other reasons why they cannot be financed per FNMA guidelines.
It doesn’t matter if you are putting 5% down or 80% down.

Not all condos are FHA approved.

One bad thing about condo loans is that it can cost $100-$200 to get the questions answered for the FNMA guidelines, and once the underwriter sees the answers the loan is declined, and that is before paying for an appraisal..

There is a difference between a qualified buyer and a qualified property.

[HLS]

If you are going to pay cash for a condo, you can buy whatever you want.
If you plan on getting a loan, it may be impossible to get one.

Many condo associations are insolvent. Some have too many rental units. There are other reasons why they cannot be financed per FNMA guidelines.
It doesn’t matter if you are putting 5% down or 80% down.

Not all condos are FHA approved.

One bad thing about condo loans is that it can cost $100-$200 to get the questions answered for the FNMA guidelines, and once the underwriter sees the answers the loan is declined, and that is before paying for an appraisal..

There is a difference between a qualified buyer and a qualified property.

[HLS]

If you are going to pay cash for a condo, you can buy whatever you want.
If you plan on getting a loan, it may be impossible to get one.

Many condo associations are insolvent. Some have too many rental units. There are other reasons why they cannot be financed per FNMA guidelines.
It doesn’t matter if you are putting 5% down or 80% down.

Not all condos are FHA approved.

One bad thing about condo loans is that it can cost $100-$200 to get the questions answered for the FNMA guidelines, and once the underwriter sees the answers the loan is declined, and that is before paying for an appraisal..

There is a difference between a qualified buyer and a qualified property.

[Ren]

[quote=esmith]When PITI w/20% down equals rent, it’s substantially cheaper to own than to rent.[/quote]

Even if you still have 20% to go on the downside? (Entirely possible in this economy.) I’m not the most knowledgeable person on here by any stretch of the imagination, but the tax benefits do not make up for losing $40k on a $200k house over 2 years. It also makes leveraging other property for investment purposes difficult or impossible, since you’d have no equity in your own home for many years.

It just seems to me that if you know prices will very likely continue to drop for a year or two, at least in a particular area, it doesn’t make sense to buy there – you’re better off investing that money elsewhere. If I’m wrong, please explain why, as I’m here to learn 🙂

[Ren]

[quote=esmith]When PITI w/20% down equals rent, it’s substantially cheaper to own than to rent.[/quote]

Even if you still have 20% to go on the downside? (Entirely possible in this economy.) I’m not the most knowledgeable person on here by any stretch of the imagination, but the tax benefits do not make up for losing $40k on a $200k house over 2 years. It also makes leveraging other property for investment purposes difficult or impossible, since you’d have no equity in your own home for many years.

It just seems to me that if you know prices will very likely continue to drop for a year or two, at least in a particular area, it doesn’t make sense to buy there – you’re better off investing that money elsewhere. If I’m wrong, please explain why, as I’m here to learn 🙂

[Ren]

[quote=esmith]When PITI w/20% down equals rent, it’s substantially cheaper to own than to rent.[/quote]

Even if you still have 20% to go on the downside? (Entirely possible in this economy.) I’m not the most knowledgeable person on here by any stretch of the imagination, but the tax benefits do not make up for losing $40k on a $200k house over 2 years. It also makes leveraging other property for investment purposes difficult or impossible, since you’d have no equity in your own home for many years.

It just seems to me that if you know prices will very likely continue to drop for a year or two, at least in a particular area, it doesn’t make sense to buy there – you’re better off investing that money elsewhere. If I’m wrong, please explain why, as I’m here to learn 🙂

[Ren]

[quote=esmith]When PITI w/20% down equals rent, it’s substantially cheaper to own than to rent.[/quote]

Even if you still have 20% to go on the downside? (Entirely possible in this economy.) I’m not the most knowledgeable person on here by any stretch of the imagination, but the tax benefits do not make up for losing $40k on a $200k house over 2 years. It also makes leveraging other property for investment purposes difficult or impossible, since you’d have no equity in your own home for many years.

It just seems to me that if you know prices will very likely continue to drop for a year or two, at least in a particular area, it doesn’t make sense to buy there – you’re better off investing that money elsewhere. If I’m wrong, please explain why, as I’m here to learn 🙂

[Ren]

[quote=esmith]When PITI w/20% down equals rent, it’s substantially cheaper to own than to rent.[/quote]

Even if you still have 20% to go on the downside? (Entirely possible in this economy.) I’m not the most knowledgeable person on here by any stretch of the imagination, but the tax benefits do not make up for losing $40k on a $200k house over 2 years. It also makes leveraging other property for investment purposes difficult or impossible, since you’d have no equity in your own home for many years.

It just seems to me that if you know prices will very likely continue to drop for a year or two, at least in a particular area, it doesn’t make sense to buy there – you’re better off investing that money elsewhere. If I’m wrong, please explain why, as I’m here to learn 🙂

[Author]

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