Should I Stay or Should I Go

Discussion in 'Community' started by Cooknn, Aug 10, 2005.

  1. Cooknn macrumors 68020

    Cooknn

    Joined:
    Aug 23, 2003
    Location:
    Fort Myers, FL
    #1
    For anyone who will put up with a bit of my life story, I would value your opinion...

    I live modestly in a 2 bedroom 1 1/2 bath condo that I bought 3 years ago for $63K. I have two boys, 11 and 15 that stay with me on the weekends. They share a bunk bed in one room and I'm in the other. I still pay the ex $1K / month in child support so this is as good as it gets - at least I thought so until today.

    I have 3 jobs - well, 1 1/2 + a new photography gig doing 360° virtual tours for real estate as some of you already know. The part time job is advertising and general tech support in the evenings at a Re/Max office for a broker with a fairly large team. He is also the biggest client for my photography business and a good friend. Recently he bought a brand new home in a new development to rent. He bought it for $250K and today they're selling for $350K. It's SWEET. 3 Bedroom, 2 Bath, 2 Car Garage, BIG Yard, new neighborhood. 1800 SqFt under air. My condo is 900 SqFt. You know where this is going :eek:

    Condo's in my complex are selling for over $165K now. That's a net of over $100K that I could realize in just 3 years. I could sell, put the money in the bank and live large - BUT the payments would be a lot more than what I'm paying now. Currently my mortgage payment is $650 + $200 in condo fees. I would be paying him $1500 / month. What's interesting is that he's paying me just about that much in photography fees + the part time evening deal. Geez, I could rationalize this thing all day long. I just wonder what real estate will be like in 7 years when I'm finally done paying the ex... What would you do?
     
  2. Dr. Dastardly macrumors 65816

    Dr. Dastardly

    Joined:
    Jun 26, 2004
    Location:
    I live in a giant bucket!
    #2
    Can you afford it comfortably. Not five cars, butler type comfortably, just so you won't have any money troubles. If thats the case pounce on it. In seven years everything is going to cost way to much.

    Why is the place going for $100 grand more? Did they add to it or something. I'll understand that the place just increased overnight (seems to be happening here in Seattle like crazy) but was just wondering if that was the case. Maybe you might want to shop around a bit.
     
  3. EJBasile macrumors 65816

    EJBasile

    Joined:
    Apr 20, 2004
    #3
    Do it if you think that you can afford the new house, pay for all of your necessary expenses, afford to pay your ex, and pay for the upkeep of your home- assuming it is a house, there is a lot more upkeep than in a condo.
    -----

    I love real estate. The value *almost* always goes up unless the neighbor hood the property is in goes to crap. My father bought acres and acres of beach property over 40 years ago for very cheap. He developed some of it over time and still he has owns some of it. As you can imagine, he made loads of money if you know what new england beach property goes for.

    He claims something like $35 an acre (i don't know if that is true) and now an acre of beach property in RI is worth very high thousands to low millions.

    Houses in my neighborhood that cost sold for 450,000 four years ago are now worth around $650,000. It's amazing
     
  4. Cooknn thread starter macrumors 68020

    Cooknn

    Joined:
    Aug 23, 2003
    Location:
    Fort Myers, FL
    #4
    Real estate in Southwest Florida is off the charts. The fact that he's only asking $1500 / month is a deal considering what the mortgage payment would be for the cost of the home. With the money I'll have in the bank, plus the fee income I have begun to generate from him over the last few months, I believe I could live comfortably. I'm pretty comfortable in my condo too though :eek: It's just that today when I walked through that brand new home - the smell got me. You know that new home smell? Hah :D That plus the space and the neighborhood. I dunno. I need to sleep on this one - for a few days...
     
  5. Sun Baked macrumors G5

    Sun Baked

    Joined:
    May 19, 2002
    #5
    Personally I'd stick with the condo, and use the $750 a month in extra cash to kill some of the bills.

    The cost to move, cost to sell, etc. will will eat into the $100k. And you end up with a higher payment.

    Right now if things go upside down in the real estate business, it might be a lot more survivable in the condo -- losing the extra real estate photog business.
     
  6. CanadaRAM macrumors G5

    CanadaRAM

    Joined:
    Oct 11, 2004
    Location:
    On the Left Coast - Victoria BC Canada
    #6
    The problem with profit-taking by selling your house is that you have to buy or rent another, and if you stay in the same market, its a wash, 'cause your replacement residence is just as inflated.

    Renting in a hot market is really expensive. When you rent, you pay the landlord. When you have a mortgagem you're paying yourself. You'd be better continuing to build your equity in your current place -- up your mortgage payment to the largest your bank and your budget will allow. Take those extra fees and put them into your place, then tell the buddy that you'd rather look at a revenue property of your own as soon as you've got your mortgage paid down. Then buy a duplex or something, live in one side and rent the other and/or the condo out, and YOU become the landlord.
     
  7. Cooknn thread starter macrumors 68020

    Cooknn

    Joined:
    Aug 23, 2003
    Location:
    Fort Myers, FL
    #7
    Stay

    Thanks again for the advice guys. I've decided to stay in my condo for a while longer. That wouldn't have been a good move for me to dump all my equity and move into a rental :eek:
     

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