That I was thinking about, it is only 150-200 different from rent it, it is much better rent it because of maintenance and plus a bigger down payment, I have the money, but I think in starting a business with it.
When you rent, you are basically helping someone else pay off their mortgage plus, Your rent can easily go up, let's not talk about the utilities which most of then do not cover when you rent.
I am a 66 year old divorced male. I don't want to cut the grass, shovel snow, or do maintenance any longer so I just want to buy a 2 bedroom condo & stay there until I can no longer be independent or pass away. Does that make sense?
Yes, it makes sense to prioritize convenience and ease of maintenance at this stage of life. Buying a 2-bedroom condo where exterior maintenance responsibilities are handled by the condo association can provide you with the lifestyle you desire. It allows you to enjoy your space without the burden of tasks like mowing the lawn or shoveling snow. Additionally, planning to stay there until you're no longer independent is a practical and sensible approach to housing for your current life stage.
Projected Realtor commission when selling is too low Could have just said a good rule of thumb is that you shouldn't buy any home as a residence unless you're sure you're going to live there for at least 5 years
I think this is a bit subjective. For me personally I purchased a condo in my mid 30s at the time interest rates were low. I specifically ruled out coops due to multiple realtors advising against co ops. The thing you said about condos not allowing a sale or controlling the price of a sale, or even getting permission to rent I was told the opposite by the realtors that it’s coops that do that not condos. Not debating just sharing. In either case the building I’m in seems to not care what the owners do majority of my building is renter occupied I also ruled out any studios and one bedrooms. Ideally I was looking for a house but if I couldn’t find a house which I didn’t I would only entertain condos that 1) located next to nyc 2) had waterfront skyline views 3) low monthly costs 4) 2 plus bed 5) washer dryer. On my end my mortgage including the fees and prop taxes comes out less than what I was paying when I lived in nyc for a studio. I have a gorgeous view and while I hope to find someone to settle down one day, I know that 2nd bedroom will be an ok place for a kid for atleast the first 8 years. So when I bought it I anticipated to upgrade to a house. Later on I don’t mind renting as my condo covers majority of the repairs. I’d mostly be responsible for drywall or door problems but pipes, electric, windows, heat all fall under hoa.
One down side of co-ops is that many of them have high elderly populations. If you're young and don't mind living around a lot of senior citizens that it might be for you.
I spent 41k on a 3bd, 1ba, finished basement with free parking 10 years ago. It has now appreciated to 200k. Should I sell it or should I keep it? The maintenance is only $388/month. The taxes are included. I pay utilities.
Whether you should sell or keep your property depends on various factors such as your financial goals, current market conditions, and personal circumstances. With the information provided, it seems like your property has appreciated significantly, which could mean a considerable profit if you sell now. However, if you're content with the rental income and potential future appreciation, and if the property fits into your long-term investment strategy, holding onto it might be a viable option. It would be wise to consult with a financial advisor who can evaluate your specific situation and provide tailored advice.
Hey, I’m a little lost on your reasoning. You say that you won’t make money on the buying of the condo, but sometimes that’s not what people are looking for - they’re just looking for a place to live with a minimal to no mortgage. If someone is buying a 500k condo, yeah that seems dumb because that is a really expensive condo and you can just buy a house with that money. But getting back to my original statement, sometimes you’ll take the hit in closing costs so that you don’t have to take a huge mortgage out but have a place to live for 3-5 years. “Losing money” doesn’t mean “losing value” if I actually lived in that condo for 3-5 years and then upgraded when I was ready. If I break even on it, I’d say that was a pretty amazing deal.
I think the best course of action really depends on the market and the individual's lifestyle, age, and future plans. For someone who will not expand their family to the point of outgrowing the space and is looking to hold the property longterm, a condo can be a great investment, especially in markets where rents are high and/or outpacing inflation. Purchasing most real estate short term hoping for profit doesn't make much sense unless you are buying to flip. Doesn't matter if it's a condo, townhome, or SFR. The question should really be does it make sense to purchase a condo or co-op short term, and for whom does it make sense. That's what he's talking about here, short term living with an assumption the buyer is young and single or a young couple with family aspirations. This is such a small segment of the home buying population. None of this advice applies to people in a different life stage or lifestyle or people whose primary goal is to have affordable and stable place to live and/or hold the property long-term. There are definitely markets where a condo or co-op is the only affordable option for many people. There are other reasons of convenience some people find appealing, like not having to deal with building and grounds maintenance. For that reason alone, it might make more sense to someone to choose a condo or co-op.
" If someone is buying a 500k condo, yeah that seems dumb because that is a really expensive condo and you can just buy a house with that money" - That makes no sense. A condo is a home and some people prefer condos to single-family homes especially if you want to live in a more desirable area. I own multiple condos in Miami (newer buildings) and a used to own a SFH in NYC and my family and I much prefer condo living.
What if you buy a co-op for 80,000 cash HOA fees of 800 a month 2bed room you plan to live there for the next 10 years and your allowed to rent it out. I would say a co-op is worth it. Because a 2bed room apt isn't 400$ it's more like 1400$ to 2000$ these days. I like co-op Payless monthly then renting especially in Yonkers NY
Yes, some co-ops do allow you to rent out your unit after a certain period of time. Co-op apartments typically have lower prices compared to condominiums, so if you're permitted to rent it out, it can be advantageous. However, it's essential to carefully review the co-op's rules and regulations regarding renting, as they can vary significantly from one co-op to another.
Hey Charles. Very informative video! If I understand correctly, purchasing a condo would lead to minimal cash gains, should you choose to rent or sale in the short term. But doesn't this apply to any property whether it be single level, town home, etc... Is there additional downside of a co-op vs condo compared to other residential properties when making a sale or renting? Thank you!!!
Lots of Co-Ops have restrictions on renting out your unit. That alone can make it a bad decision if you want to buy with the option of holding it and renting it out
If you're looking to invest in buying an apartment to rent out or sell in the future, I would advise investing in a condominium. Condos can offer advantages such as shared maintenance costs and amenities, but it's crucial to thoroughly research the condo association, fees, rules, and regulations before making a decision. Additionally, consider factors like location, rental demand, and potential for appreciation to ensure your investment aligns with your financial goals.
Hey Charlie, you usually do not pay the same fee's when buying and selling. Usually the seller pays the realtor fee's so your example seems incorrect. As the buyer, you would actually have fewer fees like closing for the loan, about $5k. The seller has more fees like the entire realtor fee -$20K (4%). So after buying the unit ($5k closing fee's) then selling the unit several years later ($20 realtor fees) so the all in costs should be around $25K not $50K. Additionally, these fees would be similar for traditional real estate like buying a house so I don't find your reasoning for not buying a condo or co-op to be valid. There may be other reasons, but I you did not explain those. Also, increases in real estate values are affected by market, economy, location and type of real estate, so it true that some properties may increase in value faster than others. Unfortunately, there is never a guarantee that property will increase in value but most do when if purchased in a desirable area and are well maintained.
Real estate is right for those with deep pockets and whose needs are catered to depending on life style. If you are a childless person/ couple then you dont need much space. Also banks and developers have large leverage so you are at their mercy and whim.
Well.. the WFH aspect has entered our realm.. and the need for bigger space because as I grow, I’m outgrowing my 1-BD LA apt. Of the past 10 years. Sometimes people need some space to RELAX, doesn’t need to be lavish, just SOME space., with counter space to make more than boil water to pour into Top Ramen noodle cups. How many outlets are in your kitchen?
I agree pretty well to Charles points. Business investors, sale agents, developers and even the freekin governments speaks about (or rather try to convince people) to purchase a home, any type of homes. However, it really looks like it's all one sided and favors more everyone but the buyers. Bipeds (we), are complicated multigenerational beings, and most humans change a lot every 10 years or so, and sometimes extremely so, like having unexpected twins, divorces, loss of employment with the need to relocate. I find that the government is really not educating and assisting the society in general with the realities of housing. The governments at every levels could be helping us citizens with a lot more intel, professional advice, guidance and $billion developing plans in favor of tenants, non luxury non profit co-ops....
8:02 Oh I wanna see more, alright. Of you. I feel you wear too many articles of clothing. Could do without the shirt and hat. Travel light, I always say.
Hey Charles. Very informative video! If I understand correctly, purchasing a condo would lead to minimal cash gains, should you choose to rent or sale in the short term. But doesn't this apply to any property whether it be single level, town home, etc... Is there additional downside of a co-op vs condo compared to other residential properties when making a sale or renting? Thank you!!!
That I was thinking about, it is only 150-200 different from rent it, it is much better rent it because of maintenance and plus a bigger down payment, I have the money, but I think in starting a business with it.
When you rent, you are basically helping someone else pay off their mortgage plus, Your rent can easily go up, let's not talk about the utilities which most of then do not cover when you rent.
Agree 😊
I am a 66 year old divorced male. I don't want to cut the grass, shovel snow, or do maintenance any longer so I just want to buy a 2 bedroom condo & stay there until I can no longer be independent or pass away. Does that make sense?
Yes, it makes sense to prioritize convenience and ease of maintenance at this stage of life. Buying a 2-bedroom condo where exterior maintenance responsibilities are handled by the condo association can provide you with the lifestyle you desire. It allows you to enjoy your space without the burden of tasks like mowing the lawn or shoveling snow. Additionally, planning to stay there until you're no longer independent is a practical and sensible approach to housing for your current life stage.
Projected Realtor commission when selling is too low
Could have just said a good rule of thumb is that you shouldn't buy any home as a residence unless you're sure you're going to live there for at least 5 years
I think this is a bit subjective. For me personally I purchased a condo in my mid 30s at the time interest rates were low. I specifically ruled out coops due to multiple realtors advising against co ops. The thing you said about condos not allowing a sale or controlling the price of a sale, or even getting permission to rent I was told the opposite by the realtors that it’s coops that do that not condos. Not debating just sharing. In either case the building I’m in seems to not care what the owners do majority of my building is renter occupied I also ruled out any studios and one bedrooms. Ideally I was looking for a house but if I couldn’t find a house which I didn’t I would only entertain condos that 1) located next to nyc 2) had waterfront skyline views 3) low monthly costs 4) 2 plus bed 5) washer dryer. On my end my mortgage including the fees and prop taxes comes out less than what I was paying when I lived in nyc for a studio. I have a gorgeous view and while I hope to find someone to settle down one day, I know that 2nd bedroom will be an ok place for a kid for atleast the first 8 years. So when I bought it I anticipated to upgrade to a house. Later on I don’t mind renting as my condo covers majority of the repairs. I’d mostly be responsible for drywall or door problems but pipes, electric, windows, heat all fall under hoa.
Agree. Condo less strict than coop. You can sell the condo or rent it out whenever you want.
One down side of co-ops is that many of them have high elderly populations. If you're young and don't mind living around a lot of senior citizens that it might be for you.
I spent 41k on a 3bd, 1ba, finished basement with free parking 10 years ago. It has now appreciated to 200k. Should I sell it or should I keep it? The maintenance is only $388/month. The taxes are included. I pay utilities.
Whether you should sell or keep your property depends on various factors such as your financial goals, current market conditions, and personal circumstances. With the information provided, it seems like your property has appreciated significantly, which could mean a considerable profit if you sell now. However, if you're content with the rental income and potential future appreciation, and if the property fits into your long-term investment strategy, holding onto it might be a viable option. It would be wise to consult with a financial advisor who can evaluate your specific situation and provide tailored advice.
Hey, I’m a little lost on your reasoning. You say that you won’t make money on the buying of the condo, but sometimes that’s not what people are looking for - they’re just looking for a place to live with a minimal to no mortgage. If someone is buying a 500k condo, yeah that seems dumb because that is a really expensive condo and you can just buy a house with that money. But getting back to my original statement, sometimes you’ll take the hit in closing costs so that you don’t have to take a huge mortgage out but have a place to live for 3-5 years. “Losing money” doesn’t mean “losing value” if I actually lived in that condo for 3-5 years and then upgraded when I was ready. If I break even on it, I’d say that was a pretty amazing deal.
Really good point. I was thinking the same breaking even vs paying rent and losing every penny seems like a win.
I think the best course of action really depends on the market and the individual's lifestyle, age, and future plans. For someone who will not expand their family to the point of outgrowing the space and is looking to hold the property longterm, a condo can be a great investment, especially in markets where rents are high and/or outpacing inflation.
Purchasing most real estate short term hoping for profit doesn't make much sense unless you are buying to flip. Doesn't matter if it's a condo, townhome, or SFR. The question should really be does it make sense to purchase a condo or co-op short term, and for whom does it make sense. That's what he's talking about here, short term living with an assumption the buyer is young and single or a young couple with family aspirations. This is such a small segment of the home buying population. None of this advice applies to people in a different life stage or lifestyle or people whose primary goal is to have affordable and stable place to live and/or hold the property long-term.
There are definitely markets where a condo or co-op is the only affordable option for many people. There are other reasons of convenience some people find appealing, like not having to deal with building and grounds maintenance. For that reason alone, it might make more sense to someone to choose a condo or co-op.
" If someone is buying a 500k condo, yeah that seems dumb because that is a really expensive condo and you can just buy a house with that money" - That makes no sense. A condo is a home and some people prefer condos to single-family homes especially if you want to live in a more desirable area. I own multiple condos in Miami (newer buildings) and a used to own a SFH in NYC and my family and I much prefer condo living.
If you buy a co-op. Can you sell it again at the same price?
No. In my experience in NY, you can sell an apartment in a cooperative after a certain time with the permission of the cooperative.
What if you buy a co-op for 80,000 cash HOA fees of 800 a month 2bed room you plan to live there for the next 10 years and your allowed to rent it out. I would say a co-op is worth it. Because a 2bed room apt isn't 400$ it's more like 1400$ to 2000$ these days. I like co-op Payless monthly then renting especially in Yonkers NY
Yes, some co-ops do allow you to rent out your unit after a certain period of time. Co-op apartments typically have lower prices compared to condominiums, so if you're permitted to rent it out, it can be advantageous. However, it's essential to carefully review the co-op's rules and regulations regarding renting, as they can vary significantly from one co-op to another.
Hey Charles. Very informative video! If I understand correctly, purchasing a condo would lead to minimal cash gains, should you choose to rent or sale in the short term.
But doesn't this apply to any property whether it be single level, town home, etc... Is there additional downside of a co-op vs condo compared to other residential properties when making a sale or renting?
Thank you!!!
Lots of Co-Ops have restrictions on renting out your unit. That alone can make it a bad decision if you want to buy with the option of holding it and renting it out
If you're looking to invest in buying an apartment to rent out or sell in the future, I would advise investing in a condominium. Condos can offer advantages such as shared maintenance costs and amenities, but it's crucial to thoroughly research the condo association, fees, rules, and regulations before making a decision. Additionally, consider factors like location, rental demand, and potential for appreciation to ensure your investment aligns with your financial goals.
no word about CO-OP.
He probably doesn't know much about them.
Hey Charlie, you usually do not pay the same fee's when buying and selling. Usually the seller pays the realtor fee's so your example seems incorrect. As the buyer, you would actually have fewer fees like closing for the loan, about $5k. The seller has more fees like the entire realtor fee -$20K (4%). So after buying the unit ($5k closing fee's) then selling the unit several years later ($20 realtor fees) so the all in costs should be around $25K not $50K. Additionally, these fees would be similar for traditional real estate like buying a house so I don't find your reasoning for not buying a condo or co-op to be valid. There may be other reasons, but I you did not explain those.
Also, increases in real estate values are affected by market, economy, location and type of real estate, so it true that some properties may increase in value faster than others. Unfortunately, there is never a guarantee that property will increase in value but most do when if purchased in a desirable area and are well maintained.
Agree 100%
What if i found one for under $60k
Seems almost worth for for such a small investment to me
Depends on the market and if you’re buying at a discount
Real estate is right for those with deep pockets and whose needs are catered to depending on life style. If you are a childless person/ couple then you dont need much space. Also banks and developers have large leverage so you are at their mercy and whim.
Well.. the WFH aspect has entered our realm.. and the need for bigger space because as I grow, I’m outgrowing my 1-BD LA apt. Of the past 10 years. Sometimes people need some space to RELAX, doesn’t need to be lavish, just SOME space., with counter space to make more than boil water to pour into Top Ramen noodle cups. How many outlets are in your kitchen?
This advice only applies to jabroni’s who want to start a family
Lol
Yea I went down that road and decided to get a single family. Yea the maintenance is a bitch but I don’t have to answer to nobody
focus....fooooocus
What about in an area with cheap co-ops?
Same. Not good in my opinion
I agree pretty well to Charles points. Business investors, sale agents, developers and even the freekin governments speaks about (or rather try to convince people) to purchase a home, any type of homes. However, it really looks like it's all one sided and favors more everyone but the buyers. Bipeds (we), are complicated multigenerational beings, and most humans change a lot every 10 years or so, and sometimes extremely so, like having unexpected twins, divorces, loss of employment with the need to relocate. I find that the government is really not educating and assisting the society in general with the realities of housing. The governments at every levels could be helping us citizens with a lot more intel, professional advice, guidance and $billion developing plans in favor of tenants, non luxury non profit co-ops....
🙌🙌
8:02 Oh I wanna see more, alright. Of you. I feel you wear too many articles of clothing. Could do without the shirt and hat. Travel light, I always say.
Thank you
❤️
🔥🔥🔥🔥
Hey Charles. Very informative video! If I understand correctly, purchasing a condo would lead to minimal cash gains, should you choose to rent or sale in the short term.
But doesn't this apply to any property whether it be single level, town home, etc... Is there additional downside of a co-op vs condo compared to other residential properties when making a sale or renting?
Thank you!!!