Seattle Condos
Recently got approved for a loan up to $750,000 for a property purchase (50K down) I'm looking around to see the best spots for me invest in around downtown Seattle before the summer when the market gets really competitive. Anyone have any insight on how I can learn more and make the best investment? TC: 150K YoE: <1 yr
Condo market has been dropping for the last year due to lots of inventory and a number of new projects coming up which will further increase inventory. It’s still a decent idea if you plan on living there for a while, but not sure I would go into a Seattle condo right now looking at it as an investment.
If I work in SLU then what other options should I look into? I'd like to avoid needing a car to get to work if possible and I'm a single guy with no need for a house to myself
If you’re planning to live there for an extended period of time still probably a decent option, I just wouldn’t expect it to be a great investment at least in the short term. I sold one in slu last April that is worth ~$100k less today. I’d look into townhouse style units in the surrounding neighborhoods like cap hill, Queen Anne, Eastlake, etc with no hoa. Can get more bang for your buck and less impacted by the influx of condo developments popping up. Flip side though, quite a few condos sitting unsold for extended periods of time it may be a good opportunity to go in and get a deal; just pay close attention to the hoa fees they can vary greatly even between similar buildings. I’d look at 2200/cosmopolitan in that price range around SLU. 2200 will have higher hoa though.
Condos kinda suck as investments tbh, those HOA fees...
What are HOA fees?
Monthly dues owners pay that go to a home owners association.
Never buy a condo for starters
Hoa fees do suck but it depends on how you look at it. Your basically paying for convenience and all of the building maintenance, elevators, pool, conceriege/mail room, parking garage, gym etc... some people find it to be worthwhile and others who don’t use any of the Am entities view it as a waste. So it all comes down to personal preference and your lifestyle. I like my condo because of the added convince, safety and security but you def need to consider the fees. Also if it’s for an investment and you decide you don’t want to live in it, find out whether Airbnb is an option as lots of condos have banned them. The other hoa gotya is as the building becomes older there can be a new assessment fee to improve something that’s not in the current budget - that can result in a large out of pocket one time fee or additional hoa fees. And the last point is condos are the worst investment if a recession happens. Hard to sell and those hoa fees don’t go down so if you ever need to rent to cover your mortgage, you maybe find yourself coming up short. 50k down on a $700k property isn’t much and your payment will likely be really high. Just some things to consider.
I’d get a townhouse. There are several in Seattle that don’t have HOA fees like most condos do. Plus, with a townhouse, you might even get a scrap of yard and garage. Just looking at Redfin, you can easily get a 3/2 with garage.
150 TC is including Rsu's? Is it an FHA loan? Won't you be paying pmi, hoa, home insurance which will be lot and the actual loan amount will be less in monthly payments? Especially as condos are more prone to decline in downturn, isn't it a risky proposition? Townhome is slightly better than a condo.
How will you afford a 750k condo with only 150 TC? 50k down you’re looking at ~5000 per month. (PMI, High HOA especially in SLU). Absolutely do not buy a condo worth that much The condo market is cooling down a shit ton too currently. Would not buy a condo at the moment
+1 on the mortgage amount. Get a townhouse or small house for $550K or under. It’s doable but not in certain parts of Seattle. You can look at North Seattle and MLT.
Sorry I should've specified. I got approved for up to $750,000, at the given down payment. I was also thinking along the lines of $450-550K as down instead. That'll allow me to put around 30K down. Which areas would be feasible if I want to be close to SLU?
if possible - get your down payment up for several reasons .....1) your mortgage ins amt will decrease as the down payment increases 2) the loan terms will improve as well dont feel rushed as condo market cooler than its been for awhile
How much down payment?
$50000
Cool. I would get an interest only mortgage for 550-650k. No point in paying principal.