Condo, Townhouse, or Single Family?
Ok, I'm literally close to exploding on this - and I'm getting conflicting advice - I should stop listening to my coworkers, Mom, etc :) So instead I ask you all.
We want to stop paying rent. Given the fact that our income (should) balloon in 3.5 years, I want to explore getting an ARM rather than a traditional 30 or 15 year (my parents believe in 15 year rather than 30 year mortgages). And since income requirements on mortgages are low, apparently we should theoretically be able to buy what we want - or so realtors say. But first we need to narrow down the field
1) Condo - in the area we live in, condos are hot, especially since so many babyboomers are downsizing, but want to stay in the area. The cheapest ones start at $185, more likely it will be around $215 to be near the bus routes. Condos are appreciating faster than townhouses or single families. My friend K really, really likes this idea.
Pros - Good chance of making a huge % profit, lowest cost option. No yard. No nothing to take care of. Most likely to be on the bus route for J. Easy to rent out later.
Cons - Is this really any different than living in an apartment??? I need some space!
2) Townhouse - these are a little harder to find, but they're pretty nicely located. I actually like townhouses in a development that was originally HUD housing, accross the street from where we live now. This is what J likes best.
Pros - the benefits of a house without a yard. It "feels" like a home. Also very young and couple-y, not grossly suburban in a manner that makes me gag. Easy to rent out later.
Cons - They're *expensive* - $250-$350 - and I don't think they'll appreciate as fast as condos of SFH's. Also, there are still noise and living with other people issues from neighbors. These houses were all built 20-30 years ago, and may need some repair - *but* repairing a townhouse is like pulling teeth.
3) Single Family Home - they're everywhere. Tons of space. Yard, so I can grow things (well, in theory). Probably the best investment - but the most expensive at $350-$450. If we bought the cheapest one with an ARM, we could probably refi in 5 years and have made a ton of money off the increase in equity. Heck, if J wanted to go to school a home equity loan would finance that in 6-12 months. Mom likes this idea best - she says if we're going to spend for a townhouse we might as well buy a real house. Then again, in the next breath she wants me to move into her basement, with or without J.
Pros - Good investment, I can have my GIANT library!!! Lots of space.
Cons - Hard to rent out later. Yard = yard work. EXPENSIVE!
We want to stop paying rent. Given the fact that our income (should) balloon in 3.5 years, I want to explore getting an ARM rather than a traditional 30 or 15 year (my parents believe in 15 year rather than 30 year mortgages). And since income requirements on mortgages are low, apparently we should theoretically be able to buy what we want - or so realtors say. But first we need to narrow down the field
1) Condo - in the area we live in, condos are hot, especially since so many babyboomers are downsizing, but want to stay in the area. The cheapest ones start at $185, more likely it will be around $215 to be near the bus routes. Condos are appreciating faster than townhouses or single families. My friend K really, really likes this idea.
Pros - Good chance of making a huge % profit, lowest cost option. No yard. No nothing to take care of. Most likely to be on the bus route for J. Easy to rent out later.
Cons - Is this really any different than living in an apartment??? I need some space!
2) Townhouse - these are a little harder to find, but they're pretty nicely located. I actually like townhouses in a development that was originally HUD housing, accross the street from where we live now. This is what J likes best.
Pros - the benefits of a house without a yard. It "feels" like a home. Also very young and couple-y, not grossly suburban in a manner that makes me gag. Easy to rent out later.
Cons - They're *expensive* - $250-$350 - and I don't think they'll appreciate as fast as condos of SFH's. Also, there are still noise and living with other people issues from neighbors. These houses were all built 20-30 years ago, and may need some repair - *but* repairing a townhouse is like pulling teeth.
3) Single Family Home - they're everywhere. Tons of space. Yard, so I can grow things (well, in theory). Probably the best investment - but the most expensive at $350-$450. If we bought the cheapest one with an ARM, we could probably refi in 5 years and have made a ton of money off the increase in equity. Heck, if J wanted to go to school a home equity loan would finance that in 6-12 months. Mom likes this idea best - she says if we're going to spend for a townhouse we might as well buy a real house. Then again, in the next breath she wants me to move into her basement, with or without J.
Pros - Good investment, I can have my GIANT library!!! Lots of space.
Cons - Hard to rent out later. Yard = yard work. EXPENSIVE!