Should I buy this condo?

NEW -> Contingent Buyer Assistance Program
Here are the pros & cons I can think of

Pro:

1. Higher quality of living (than rent), newer neighborhood, etc

2. Protection against inflation that may come as a result of doubling money supply

3. Take advantage of the low rate - I don't think it will stay this low next year



Cons:

1. Seems slightly higher cost than rent

2. High HOA & mello. It's hard to pass on to the next buyer when selling

3. Risk of housing price down another 15%, therefore may be forced to stuck here for 5 years or more - there's a good chance that I won't stay in Irvine for longer than 3 years.



Looks like pros<con so far ... still deciding
 
only 3 years?



Did you say that earlier?



If only 3 years, then transaction costs become significant also.





and what if condo prices go down 40% in the next three years?
 
[quote author="ipoplaya" date=1240562883][quote author="Goofy" date=1240560645]



Does your landlord clean your carpets, replace your filters, pay for HVAC inspections, paint your house to your color of choice and pay for the Orkin guy? Those are out of pocket for owners or renters. Also, I do my own painting for about $50 per room including paint, so several thousand is really a personal decision.</blockquote>


Yes my landlord does pay to replace the filters and for the HVAC tune-up. He also pays for pest control... He paid for a replacement tub spout, replacement toilet handle, replacement thermostat, replacement garbarge disposal unit and replacement light fixture also. Renters and owners do not have the same maintenance costs. My landlord has spent at least $1K on maintenance/repairs since July 2008 on my place. If he would have paid outside contractor labor to effect the repairs, it probably would have been $1500 total with parts and labor. Tack on reserves for aging exterior paint, roofing, appliances, HVAC system, flooring, etc. and the maintenance costs on my home are easily $200 per month.</blockquote>


Is this really required of a LL (of course in this market you want an LL take care of this stuff)? A leasehold is a significant interest in property that I, as an LL, believe teh tenant should be responsible for routine things, such as replacing toilet handles, taking care of plumbing costs if a leak occurs because of their actions, changing light bulbs, filters, etc. (especially if those are quarterly replacements). But I guess at the end of the day, the owner needs to what it takes to maintain and protect his/her property.
 
[quote author="JLegend" date=1240581358]Is this really required of a LL (of course in this market you want an LL take care of this stuff)? A leasehold is a significant interest in property that I, as an LL, believe teh tenant should be responsible for routine things, such as replacing toilet handles, taking care of plumbing costs if a leak occurs because of their actions, changing light bulbs, filters, etc. (especially if those are quarterly replacements). But I guess at the end of the day, the owner needs to what it takes to maintain and protect his/her property.</blockquote>


Are you a landlord? I can understand my tenants replacing light bulbs, but toilet handles and plumbing repairs from a leak... I sure as hell hope they call the property management to fix it. If they don't, I hope they bill me, since that is their right, and since I can ask to have someone go in there and inspect the work. If they don't do any of that, when they move out, and an inspection reveals substandard repairs, you can be assured they will lose their deposit and may be liable for any other repairs they did that violated their lease contract. If you live in an IAC apartment, you might get your light bulbs changed, but the reality is that is not what is required. Read your lease agreement, you DO NOT WANT to be doing repairs on your place without notifying the landlord/property management.
 
<blockquote><strong>The builder warranty covers the rest for 10 years</strong></blockquote>


What gives you that idea?



You may be thinking of the 10 year Structual Defect law which basically is insurance for the builder against major defects.
 
[quote author="JLegend" date=1240581358][quote author="ipoplaya" date=1240562883][quote author="Goofy" date=1240560645]



Does your landlord clean your carpets, replace your filters, pay for HVAC inspections, paint your house to your color of choice and pay for the Orkin guy? Those are out of pocket for owners or renters. Also, I do my own painting for about $50 per room including paint, so several thousand is really a personal decision.</blockquote>


Yes my landlord does pay to replace the filters and for the HVAC tune-up. He also pays for pest control... He paid for a replacement tub spout, replacement toilet handle, replacement thermostat, replacement garbarge disposal unit and replacement light fixture also. Renters and owners do not have the same maintenance costs. My landlord has spent at least $1K on maintenance/repairs since July 2008 on my place. If he would have paid outside contractor labor to effect the repairs, it probably would have been $1500 total with parts and labor. Tack on reserves for aging exterior paint, roofing, appliances, HVAC system, flooring, etc. and the maintenance costs on my home are easily $200 per month.</blockquote>


Is this really required of a LL (of course in this market you want an LL take care of this stuff)? A leasehold is a significant interest in property that I, as an LL, believe teh tenant should be responsible for routine things, such as replacing toilet handles, taking care of plumbing costs if a leak occurs because of their actions, changing light bulbs, filters, etc. (especially if those are quarterly replacements). But I guess at the end of the day, the owner needs to what it takes to maintain and protect his/her property.</blockquote>


I think I have a landlord that is more generous than most, but no tenant should have to replace or repair anything major in a rental at their own expense. Makes no sense... If I as the tenant own the thermostat, toilet handle, garbage disposal, etc. do I take them with me when I end my tenancy? I should since I paid for them... So then what does the landlord have to do? Pay to replace them anyway.



Tenants contract on a property in a particular condition. If the garbage disposal is working when they start their term, it needs to keep working at whatever cost required to the landlord. You can't hit up a particular tenant for a "routine" repair on something that has essentially broken as a by-product of age. The landlord should be accounting for these repair and replacment costs in their rental revenue, essentially a reserve component of the monthly rent, so that each month a tenant uses the property they are in effect contributing to this reserve.
 
We rent and I do almost all small repairs myself and give our landlord a receipt for the parts and take the cost off the rent. We do not like waiting for repairmen and do not care to have unknown folks around when I am at work, so it is easier to fix stuff myself. And I do not usually ask before I do the repairs.
 
And in both awgee's and freedom's case... the LL still foots the bill which is what IPO is trying to say.



Having rented for the first time in years... it is a bit stress relieving knowing that I don't have to pay for stuff that breaks under normal wear and tear. In the last home I owned, we paid out about $8k in repair and upgrade costs over the course of 3 years... that's over $200 a month.
 
[quote author="irvine_home_owner" date=1240642404]And in both awgee's and freedom's case... the LL still foots the bill which is what IPO is trying to say.



Having rented for the first time in years... it is a bit stress relieving knowing that I don't have to pay for stuff that breaks under normal wear and tear. In the last home I owned, we paid out about $8k in repair and upgrade costs over the course of 3 years... that's over $200 a month.</blockquote>


Raptors contention is that a condo doesn't need sprinkler repair, roof, exterior paint or any sort of landscaping worries. If a faucet or toilet breaks then that's out of pocket, sure. Upgrade fees and painting do not figure into the rental parity equation, those are personal choice.



I have a 30 yr old condo that I rent out, and other than leaky faucets and fixing door handles there really isn't much to worry about. The HOA handles the rest.



At $100/month, that's $6000 at the end of 5 years. That is more than new HVAC and appliances combined, and if all of your appliances and HVAC system needs to be replaced every 5 years then you need some help. Renters supply their own fridge, and a microwave is not required so you're only talking about the stove and the A/C unit. $50 on average per month is generous for a brand new condo.
 
[quote author="Goofy" date=1240644888][quote author="irvine_home_owner" date=1240642404]And in both awgee's and freedom's case... the LL still foots the bill which is what IPO is trying to say.



Having rented for the first time in years... it is a bit stress relieving knowing that I don't have to pay for stuff that breaks under normal wear and tear. In the last home I owned, we paid out about $8k in repair and upgrade costs over the course of 3 years... that's over $200 a month.</blockquote>


Raptors contention is that a condo doesn't need sprinkler repair, roof, exterior paint or any sort of landscaping worries. If a faucet or toilet breaks then that's out of pocket, sure. Upgrade fees and painting do not figure into the rental parity equation, those are personal choice.



I have a 30 yr old condo that I rent out, and other than leaky faucets and fixing door handles there really isn't much to worry about. The HOA handles the rest.



At $100/month, that's $6000 at the end of 5 years. That is more than new HVAC and appliances combined, and if all of your appliances and HVAC system needs to be replaced every 5 years then you need some help. Renters supply their own fridge, and a microwave is not required so you're only talking about the stove and the A/C unit. $50 on average per month is generous for a brand new condo.</blockquote>
I understand that, and although I am probably using an example of the high end of maintenence (it was an SFR), to put $0 for maintenance is unrealistic.



I wasn't really arguing what Raptor should put as his cost for maintenance in his RentVsOwn scenario... I was just supporting the fact that owners bear that burden... not renters.
 
[quote author="Goofy" date=1240644888]

At $100/month, that's $6000 at the end of 5 years. That is more than new HVAC and appliances combined, and if all of your appliances and HVAC system needs to be replaced every 5 years then you need some help. Renters supply their own fridge, and a microwave is not required so you're only talking about the stove and the A/C unit. $50 on average per month is generous for a brand new condo.</blockquote>


How often do you need to replace the stove, LOL.
 
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