Should I buy a condo in downtown Seattle?

Dec 8, 2019 27 Comments

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?

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TOP 27 Comments
  • Apple carmax
    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
    Dec 8, 2019 7
    • Credit Karma bollywood
      Interest, taxes, hoa fees also goes into a black box you never see again.
      Dec 8, 2019
    • Credit Karma / Eng Bathroom
      A home you live in is a liability not an investment.
      Dec 8, 2019
    • Amazon / Eng jefbs
      OP
      But if Money spent renting >> Interest, taxes, hoa fees..then doesn’t it make sense to buy?
      Dec 8, 2019
    • Amazon sJR6q5p
      There are large costs associated with selling a property. That's why it's generally not a good idea to buy if you know you're going to sell in less than 5-10 years.

      It's also riskier. If we enter a recession while you have a large mortgage payment and you lose your job, you risk getting foreclosed on and losing all the money, including down payment, that you payed in so far. Or it could have been poorly constructed and have significantly more maintenance costs than you were expecting.

      Check out buy vs rent calculators like, https://smartasset.com/mortgage/rent-vs-buy
      Dec 8, 2019
    • Microsoft / Eng universale
      Invest savings in index funds and your capital gains on 350K will cover your rent. I think people should wait till they have a family before buying a house or know they will be in that city for at least 5-10 years
      Dec 8, 2019
  • Microsoft CJYn38
    wAiT fOr rEcEsSiOn
    Dec 8, 2019 0
  • Facebook public2
    Never buy a condo.
    Dec 8, 2019 2
    • Microsoft / Eng universale
      Why is that?
      Dec 8, 2019
    • Facebook public2
      Hoa, poor appreciation, hoa, faster declines, and hoa.
      Dec 8, 2019
  • Apple zVzOzLzNz
    How long u plan to stay in amazon and Seattle?
    Dec 8, 2019 2
    • Amazon / Eng jefbs
      OP
      Not sure..but at least 3-4 years in Seattle.
      Dec 8, 2019
    • Amazon OMwD10
      5-10 years make sense. 3-4 years not a good idea.
      Dec 8, 2019
  • Credit Karma / Eng Bathroom
    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
    Dec 8, 2019 2
    • Amazon sJR6q5p
      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.
      Dec 8, 2019
    • Rubrik WEEWOOO
      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.
      Dec 8, 2019
  • Apple Baba Voss
    Is it earthquake proof?
    Dec 8, 2019 1
    • Apple carmax
      It’s seattle.. everything is going to sink when the big one hits
      Dec 8, 2019
  • NCR Corporation J4N5
    If you decide living there it's okay, but from investment side you have way better opportunities
    Dec 8, 2019 1
    • Amazon / Eng jefbs
      OP
      Yeah..planning to live there
      Dec 8, 2019
  • Google / Eng
    EngElder

    Google Eng

    PRE
    Microsoft
    EngEldermore
    How much is rent for something equivalent?
    Dec 8, 2019 1
    • Amazon / Eng jefbs
      OP
      Rent is around 3k for equivalent
      Dec 8, 2019
  • bhk?
    Dec 8, 2019 0
  • No
    Dec 8, 2019 0

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