Have around 300k in savings (including vested RSUs) TC of 350k Currently renting a 1 bhk for 2k. Want to move to a 2bhk apartment. Is it worth buying a condo (2 bhk) in the city for 700k? That would mean I end up spending around 3.5k in mortgage (including HOA and insurance). Rent would be around $3k for an equivalent rented condo. Is it really worth the investment?
Don’t buy
How much is rent for something equivalent?
Rent is around 3k for equivalent
wAiT fOr rEcEsSiOn
If you decide living there it's okay, but from investment side you have way better opportunities
Yeah..planning to live there
Wow 700? That’s crazy. Like someone said before, if you are planning to stay for only several more years, then it might not be the best idea. Condos appreciate the slowest and depreciate the fastest in a down market
But isn’t it better than renting where 3k every month is going into a black box which I’m never going to see again?
Lol well yeah buying a home is an investment. There are risks associated with any type of investment, and you need to make the final decision on an asset based on market conditions among other things
No
I never understood why people buy homes when they can rent the equivalent home for less money. My recommendation is to rent and save up your money then on a downturn buy something instead. My guess is that in a downturn home prices will drop but rent prices will stay the same
Depends on what kind of downturn. If we have runaway inflation, this could be a very bad plan, and owners of hard assets like property would come out significantly ahead.
It's a hedge against the future. Mortgage payments stay constant and rent changes. So as other people point out it's bad if there's a recession. But it's great if there isn't.
How long u plan to stay in amazon and Seattle?
Not sure..but at least 3-4 years in Seattle.
5-10 years make sense. 3-4 years not a good idea.