Is my plan for buying a home in two years viable?

[svelte]

[quote=spdrun]Why not on the condo? If you’re young, better to have some other schmuck maintain the outside, pool, roof, etc than have to deal with it yourself. Paying a $250-300/mo HOA is actually a bargain unless your time is worthless.[/quote]

Because what is becoming scarce in San Diego county is land. With a SFR you own more land than a condo, and you have more control over that land. In this county, land values will go up in value faster than whatever is built on it. As a general rule, there will be exceptions of course.

There are situations where it makes sense to own a condo: if you don’t have the time, money, or health to maintain a house, then a condo makes sense.

From the OP’s post, since s/he is willing to buy a fixer and has a great income level, I don’t think those situations apply.

[fun4vnay2]

Of course, I’ve seen people twisting data in different ways..
Data is just one of many parameters for us to analyze.

[spdrun]

There are situations where it makes sense to own a condo: if you don’t have the time, money, or health to maintain a house, then a condo makes sense.

From the OP’s post, since s/he is willing to buy a fixer and has a great income level, I don’t think those situations apply.

You’re forgetting “… or the desire.” Some people want to be relatively free, and no external maintenance goes a long way towards freedom. One can still buy a fixer condo — I’ve seen some that need a lot of work inside — if they want a good deal.

[an]

[quote=spdrun]

There are situations where it makes sense to own a condo: if you don’t have the time, money, or health to maintain a house, then a condo makes sense.

From the OP’s post, since s/he is willing to buy a fixer and has a great income level, I don’t think those situations apply.

You’re forgetting “… or the desire.” Some people want to be relatively free, and no external maintenance goes a long way towards freedom. One can still buy a fixer condo — I’ve seen some that need a lot of work inside — if they want a good deal.[/quote]You’ve heard of gardeners, right? I’m pretty sure those people who live in RSF are not maintaining their acreage by themselves.

[spdrun]

Hiring a gardener isn’t a “walk away for a year and forget it” proposition. A condo where the HOA isn’t strict about subletting essentially is, especially if everything but electricity and Internet are part of the monthly HOA.

You get landscaping without having to deal with a gardener, and a pool without having to hire a pool boy.

[Jazzman]

[quote=KristopherSD]Hello again,

Any thoughts? Should I just buy now and remodel as I go along, or possibly purchase a flipped home since I currently won’t have the needed remodel savings? My plan makes the most sense to me, but i’d love opinions.[/quote]

In your own words, RE is “over-heated” so why would you risk your capital? Whatever your estimates for remodeling, play safe and double it. Stay well within your limits in every sense. A home that needs remodeling isn’t always priced accordingly. Best laid plans of mice and men.

[(former)FormerSanDiegan]

You are missing a key piece of information:

What are you current paying in rent.

If the math works that you can buy now for roughly equivalent to rent, or within a delta that makes sense, then I would consider buying now.

But if buying is significantly more expensive than your current rent, you probably want to build up a cushion while you are able.

Either way, do the math on whatever you buy as if you were going to rent it out in a year or two. If it makes sense from that perspective, then I wouldn’t wait two years.

[fun4vnay2]

Ran some high level numbers for condos to buy to rent out. I didn’t see anyway I could have + cashflow.
I was looking in desirable areas known to me and not at run down property.

I agree that properties needing repairs/renovations are not really priced accordingly. Thus I’d prefer a property with some renovations already done…
Also, I am bad at fixing/handy-man-ish kind of thing and even if I do it myself, it takes my time away from kids which won’t work for me.

[spdrun]

Get the kiddoes to help — at least they’ll learn some useful stuff other than being able to stroke an iPad.

[fun4vnay2]

Good idea spdrun,

I always do small project like paint the fence and I always involve the…
they love it generally.

[svelte]

[quote=spdrun]

There are situations where it makes sense to own a condo: if you don’t have the time, money, or health to maintain a house, then a condo makes sense.

From the OP’s post, since s/he is willing to buy a fixer and has a great income level, I don’t think those situations apply.

You’re forgetting “… or the desire.”
[/quote]

Uh, no I didn’t forget but thanks for making that assumption.

I don’t consider “lazy” sufficient reason to buy a condo.

[spdrun]

It’s not laziness. It’s prioritization. I’d rather be seeing the world than being a slave to a fucking box of ticky-tacky, because society expects me to.

[scaredyclassic]

I spend about 40 h. A year just knocking down weeds . Maybe more.

[bearishgurl]

I spend 4 hrs a month just cleaning up after trees … planted on the City’s easements … no less. Sometimes I have to borrow an additional 90 gal yard waste can for the job. Homeownership can be ugly … a LOT of work. Not for the faint-hearted …

However, I don’t believe in HOAs. I don’t want to pay dues for the privilege of being told what I can and can’t do with my property.

You can’t have it both ways….

The good thing is, the City maintains their own trees (just not their fallout). Trying to get them out here in a timely manner is another matter, altogether, however …

[bearishgurl]

I agree with svelte, here, as it applies to CA. In buying an SFR in CA, you actually own the land your dwelling sits on. Like it or not (and regardless of what your local assessor says), THE VALUE OF THE LAND is what boosts property value in CA coastal counties. The closer to the coast your property sits, the higher your land value is in relation to your overall property value (market-wise) REGARDLESS of what the assessor says on your tax bill. This is ESPECIALLY TRUE for those properties situated within TWO MILES of the coast!

In a condo you own which is not a townhouse or a PUD, you don’t own ANY land (regardless of what your tax bill says the “land value” is). In this case, your “land value” of ownership is minuscule, due to having another condo above you and possibly below you as well. Your “ownership” portion of land is essentially the total lot size of the complex divided by the total number of units in the complex (technically speaking). But practically speaking, an individual owner in this case “owns” no land. They “own” their interior walls but nothing more. Their own “interior walls” could be subject to plumbing pipe bursts from their neighbor’s walls. Essentially, an “owner’s” market value in a true “condo” is inexorably tied up with three caveats:

1. the quality of the condo builder’s work;

2. the condition of the HOA’s financial statements, as well as the HOA’s ability to enforce the CC&R’s to non-dues payor-owners into paying their dues; and,

3. the timely payment of dues by ALL other owners’ in a timely manner in order to maintain the condo assn’s schedule of repairs and maintenance.

In spdrun’s area (Manhattan, NYC) condos (“coops,” in NY-speak) … the RULES are MUCH different than CA and there are no alternatives to this type of lifestyle. With NYC’s inclement weather at least 7 months per year … YES, it absolutely DOES MAKE SENSE to buy a walkup or co-op where the individual homeowner doesn’t have the authority to groom the sidewalk or easement in front of their dwelling … that is … if they want to live in Manhattan.

Different strokes for different folks (located in different regions of the country).

[Author]

Posts