Should I buy or rent? New graduate student at UCSD

[noone]

You need to compare the cost of purchasing vs. the cost of renting. If you buy now, no one can really say what you will be able to sell it for in 5 years. But for the sake of argument, let’s say you sell for the same $200k.

Since you will be buying outright, you won’t be paying interest, but you will need to pay for the following at least:

HOA: $5k ($80/month)
Homeowners Insurance: $2k ($400/year)
Property Taxes: $9k (assuming 20% tax bracket)
Maintenance (plumbing, electrical, appliances, carpeting, etc.): $5k ($1k/year)
Commission when you sell: $12k (6% selling at $200k)

Plus you lose out on any interest income that $200k could be earning if invested elsewhere: $45k (4%/year compound)

Total cost of ownership $78k

Compared to the $80k in rent you estimated, it’s pretty much a wash

[AK]

Are you sure you’ll have the cash flow to handle association dues, maintenance, taxes, special assessments, and so on? If so I think you might be able to make the case for buying.

I think the condo market has a way to go before hitting rock bottom, but even so I’d imagine it would recover within a five-year time frame. And there’s always the risk that inflation will eat up whatever investment return you can get on $200K over five years.

Plus it would really suck to move in the middle of grad school. Spoken from the POV of someone who gave up after losing all his thesis notes.

As others have mentioned, there’s not much in that part of town in your price range. Investigate your transportation options carefully — parking isn’t so great, the trolley doesn’t go there, and the nearest Coaster station is a 20-minute shuttle ride away.

[AK]

Are you sure you’ll have the cash flow to handle association dues, maintenance, taxes, special assessments, and so on? If so I think you might be able to make the case for buying.

I think the condo market has a way to go before hitting rock bottom, but even so I’d imagine it would recover within a five-year time frame. And there’s always the risk that inflation will eat up whatever investment return you can get on $200K over five years.

Plus it would really suck to move in the middle of grad school. Spoken from the POV of someone who gave up after losing all his thesis notes.

As others have mentioned, there’s not much in that part of town in your price range. Investigate your transportation options carefully — parking isn’t so great, the trolley doesn’t go there, and the nearest Coaster station is a 20-minute shuttle ride away.

[AK]

Are you sure you’ll have the cash flow to handle association dues, maintenance, taxes, special assessments, and so on? If so I think you might be able to make the case for buying.

I think the condo market has a way to go before hitting rock bottom, but even so I’d imagine it would recover within a five-year time frame. And there’s always the risk that inflation will eat up whatever investment return you can get on $200K over five years.

Plus it would really suck to move in the middle of grad school. Spoken from the POV of someone who gave up after losing all his thesis notes.

As others have mentioned, there’s not much in that part of town in your price range. Investigate your transportation options carefully — parking isn’t so great, the trolley doesn’t go there, and the nearest Coaster station is a 20-minute shuttle ride away.

[AK]

Are you sure you’ll have the cash flow to handle association dues, maintenance, taxes, special assessments, and so on? If so I think you might be able to make the case for buying.

I think the condo market has a way to go before hitting rock bottom, but even so I’d imagine it would recover within a five-year time frame. And there’s always the risk that inflation will eat up whatever investment return you can get on $200K over five years.

Plus it would really suck to move in the middle of grad school. Spoken from the POV of someone who gave up after losing all his thesis notes.

As others have mentioned, there’s not much in that part of town in your price range. Investigate your transportation options carefully — parking isn’t so great, the trolley doesn’t go there, and the nearest Coaster station is a 20-minute shuttle ride away.

[AK]

Are you sure you’ll have the cash flow to handle association dues, maintenance, taxes, special assessments, and so on? If so I think you might be able to make the case for buying.

I think the condo market has a way to go before hitting rock bottom, but even so I’d imagine it would recover within a five-year time frame. And there’s always the risk that inflation will eat up whatever investment return you can get on $200K over five years.

Plus it would really suck to move in the middle of grad school. Spoken from the POV of someone who gave up after losing all his thesis notes.

As others have mentioned, there’s not much in that part of town in your price range. Investigate your transportation options carefully — parking isn’t so great, the trolley doesn’t go there, and the nearest Coaster station is a 20-minute shuttle ride away.

[PadreBrian]

I pray to God you arn’t an economics or business grad student.

Student housing for the win.

[PadreBrian]

I pray to God you arn’t an economics or business grad student.

Student housing for the win.

[PadreBrian]

I pray to God you arn’t an economics or business grad student.

Student housing for the win.

[PadreBrian]

I pray to God you arn’t an economics or business grad student.

Student housing for the win.

[PadreBrian]

I pray to God you arn’t an economics or business grad student.

Student housing for the win.

[SK in CV]

The cost of student housing nostradamus….

for a grad student at UCSD for a 2br apartment ranges from just under $1,000 to over $1,200 a month, so either your friends are sharing that apartment with someone else or they’re paying much more than they’re saying.

The rent for comparable apartments and condos in the area range from $1,300 to over $1,800 a month for the nicer condo complexes.

But renting is still by far the best option, at least in the immediate vicinity of UCSD. Prices are still dropping and will probably continue for the forseeable future.

The condos and apartments in the penasquitos and scripps ranch area are more affordable and seem to have hit a plateau over the last couple months, probably closer to the bottom. And there might even be something available in the $200K range that is more than a converted apartment.

[SK in CV]

The cost of student housing nostradamus….

for a grad student at UCSD for a 2br apartment ranges from just under $1,000 to over $1,200 a month, so either your friends are sharing that apartment with someone else or they’re paying much more than they’re saying.

The rent for comparable apartments and condos in the area range from $1,300 to over $1,800 a month for the nicer condo complexes.

But renting is still by far the best option, at least in the immediate vicinity of UCSD. Prices are still dropping and will probably continue for the forseeable future.

The condos and apartments in the penasquitos and scripps ranch area are more affordable and seem to have hit a plateau over the last couple months, probably closer to the bottom. And there might even be something available in the $200K range that is more than a converted apartment.

[SK in CV]

The cost of student housing nostradamus….

for a grad student at UCSD for a 2br apartment ranges from just under $1,000 to over $1,200 a month, so either your friends are sharing that apartment with someone else or they’re paying much more than they’re saying.

The rent for comparable apartments and condos in the area range from $1,300 to over $1,800 a month for the nicer condo complexes.

But renting is still by far the best option, at least in the immediate vicinity of UCSD. Prices are still dropping and will probably continue for the forseeable future.

The condos and apartments in the penasquitos and scripps ranch area are more affordable and seem to have hit a plateau over the last couple months, probably closer to the bottom. And there might even be something available in the $200K range that is more than a converted apartment.

[SK in CV]

The cost of student housing nostradamus….

for a grad student at UCSD for a 2br apartment ranges from just under $1,000 to over $1,200 a month, so either your friends are sharing that apartment with someone else or they’re paying much more than they’re saying.

The rent for comparable apartments and condos in the area range from $1,300 to over $1,800 a month for the nicer condo complexes.

But renting is still by far the best option, at least in the immediate vicinity of UCSD. Prices are still dropping and will probably continue for the forseeable future.

The condos and apartments in the penasquitos and scripps ranch area are more affordable and seem to have hit a plateau over the last couple months, probably closer to the bottom. And there might even be something available in the $200K range that is more than a converted apartment.

[Author]

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