Thoughts on buying condo conversions – buy vs. rent?

[ctr70]

As a single person renting, condo conversions are the only affordable product in decent neighborhoods in San Diego. Want to get others thoughts on buying one.

*Pro’s*
1. Location: you can get them in much better neighborhoods than sfr’s or non conversion condo’s
2. over time they will be the only affordable housing product in San Diego, as SFR’s get out of reach again (already starting to happen)
3. for me, the PITI + tax benefit with buying would be equal or lower than rent (HUGE BONUS is the $8k tax credit now until April 30th 2010)
4. Lock in a super low 30 yr fixed rate right now

*Con’s*
1. they are bascially 1960’s-1970’s apartment buildings on the inside with cosmetic on the outside
2. most have major HOA issues
3. may be tough for new buyers to get financing on for years
4. large special assesments down the road

…..I think even with the “con’s”, if the PITI is equal to rent (+ the bonus of the $8k tax credit) it may be a good move. Over the next few years San Diego will become terribly unaffordable again (it alread is again), and I think there will be demand for conversions just because of the locations and price points.

Is there anyone out there that has owned one for a lot of years that can offer feedback on owning them over time?

[Zeitgeist]

Here is some useful information on a previous thread (not necessarily about conversions, but some of the implications of owning when most are rented or vacant):
http://piggington.com/downtown_condos_are_in_big_trouble

[Zeitgeist]

Here is some useful information on a previous thread (not necessarily about conversions, but some of the implications of owning when most are rented or vacant):
http://piggington.com/downtown_condos_are_in_big_trouble

[Zeitgeist]

Here is some useful information on a previous thread (not necessarily about conversions, but some of the implications of owning when most are rented or vacant):
http://piggington.com/downtown_condos_are_in_big_trouble

[Zeitgeist]

Here is some useful information on a previous thread (not necessarily about conversions, but some of the implications of owning when most are rented or vacant):
http://piggington.com/downtown_condos_are_in_big_trouble

[Zeitgeist]

Here is some useful information on a previous thread (not necessarily about conversions, but some of the implications of owning when most are rented or vacant):
http://piggington.com/downtown_condos_are_in_big_trouble

[ctr70]

Zeitgeist re: you link….FHA has already delayed twice the implemenation of it’s new condo rules. IMO I think FHA/Fannie is going to have to make some adjustments to their condo guides or they are going to have way too big of a problem with condo foreclosures. I would look towards FHA possible making some adjustments to make it slighly easier to buy condo’s. b/c they already hold so many mortgages in condo’s, it’s not going to be in their interest to create draconian guidelines that reduce the value of those mortgages.

I also think if you plan to live in the condo and hold it for a while, this stuff will get worked out over time. As long as you are in a good neighborhood and getting in at close or near bottom (now), good chance you will be OK. They are going to be the ONLY semi-affordable housing left in San Diego and there will be limited housing suppy again in San Diego. This is not Texas where you can just build, build, build forever. SFR’s in good neighborhoods are out-of-reach for most, or even those that could buy, but don’t want the $3,500+/mo housing payment of a SFR in a *decent* San Diego neighborhood.

[ctr70]

Zeitgeist re: you link….FHA has already delayed twice the implemenation of it’s new condo rules. IMO I think FHA/Fannie is going to have to make some adjustments to their condo guides or they are going to have way too big of a problem with condo foreclosures. I would look towards FHA possible making some adjustments to make it slighly easier to buy condo’s. b/c they already hold so many mortgages in condo’s, it’s not going to be in their interest to create draconian guidelines that reduce the value of those mortgages.

I also think if you plan to live in the condo and hold it for a while, this stuff will get worked out over time. As long as you are in a good neighborhood and getting in at close or near bottom (now), good chance you will be OK. They are going to be the ONLY semi-affordable housing left in San Diego and there will be limited housing suppy again in San Diego. This is not Texas where you can just build, build, build forever. SFR’s in good neighborhoods are out-of-reach for most, or even those that could buy, but don’t want the $3,500+/mo housing payment of a SFR in a *decent* San Diego neighborhood.

[ctr70]

Zeitgeist re: you link….FHA has already delayed twice the implemenation of it’s new condo rules. IMO I think FHA/Fannie is going to have to make some adjustments to their condo guides or they are going to have way too big of a problem with condo foreclosures. I would look towards FHA possible making some adjustments to make it slighly easier to buy condo’s. b/c they already hold so many mortgages in condo’s, it’s not going to be in their interest to create draconian guidelines that reduce the value of those mortgages.

I also think if you plan to live in the condo and hold it for a while, this stuff will get worked out over time. As long as you are in a good neighborhood and getting in at close or near bottom (now), good chance you will be OK. They are going to be the ONLY semi-affordable housing left in San Diego and there will be limited housing suppy again in San Diego. This is not Texas where you can just build, build, build forever. SFR’s in good neighborhoods are out-of-reach for most, or even those that could buy, but don’t want the $3,500+/mo housing payment of a SFR in a *decent* San Diego neighborhood.

[ctr70]

Zeitgeist re: you link….FHA has already delayed twice the implemenation of it’s new condo rules. IMO I think FHA/Fannie is going to have to make some adjustments to their condo guides or they are going to have way too big of a problem with condo foreclosures. I would look towards FHA possible making some adjustments to make it slighly easier to buy condo’s. b/c they already hold so many mortgages in condo’s, it’s not going to be in their interest to create draconian guidelines that reduce the value of those mortgages.

I also think if you plan to live in the condo and hold it for a while, this stuff will get worked out over time. As long as you are in a good neighborhood and getting in at close or near bottom (now), good chance you will be OK. They are going to be the ONLY semi-affordable housing left in San Diego and there will be limited housing suppy again in San Diego. This is not Texas where you can just build, build, build forever. SFR’s in good neighborhoods are out-of-reach for most, or even those that could buy, but don’t want the $3,500+/mo housing payment of a SFR in a *decent* San Diego neighborhood.

[ctr70]

Zeitgeist re: you link….FHA has already delayed twice the implemenation of it’s new condo rules. IMO I think FHA/Fannie is going to have to make some adjustments to their condo guides or they are going to have way too big of a problem with condo foreclosures. I would look towards FHA possible making some adjustments to make it slighly easier to buy condo’s. b/c they already hold so many mortgages in condo’s, it’s not going to be in their interest to create draconian guidelines that reduce the value of those mortgages.

I also think if you plan to live in the condo and hold it for a while, this stuff will get worked out over time. As long as you are in a good neighborhood and getting in at close or near bottom (now), good chance you will be OK. They are going to be the ONLY semi-affordable housing left in San Diego and there will be limited housing suppy again in San Diego. This is not Texas where you can just build, build, build forever. SFR’s in good neighborhoods are out-of-reach for most, or even those that could buy, but don’t want the $3,500+/mo housing payment of a SFR in a *decent* San Diego neighborhood.

[werewolf34]

I’ve thought the same thing. But as a potential buyer, you need to do a LOT of physical due diligence on a condo conversion.

Many of the one I like on paper (verano, lucera) are in terrible condition (leaky pipes,etc)

[werewolf34]

I’ve thought the same thing. But as a potential buyer, you need to do a LOT of physical due diligence on a condo conversion.

Many of the one I like on paper (verano, lucera) are in terrible condition (leaky pipes,etc)

[werewolf34]

I’ve thought the same thing. But as a potential buyer, you need to do a LOT of physical due diligence on a condo conversion.

Many of the one I like on paper (verano, lucera) are in terrible condition (leaky pipes,etc)

[werewolf34]

I’ve thought the same thing. But as a potential buyer, you need to do a LOT of physical due diligence on a condo conversion.

Many of the one I like on paper (verano, lucera) are in terrible condition (leaky pipes,etc)

[Author]

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