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It sounds like you can easily afford the condo yet you feel that since it has lost so much value, you should walk away from your investments and sink more money into something else?
B.A.C.A.H.
2010 Jul 13, 3:56pm
I cannot believe people would pay so much for rent, but dajanara is actually paying it, $2600 for a 2 BR in downtown.
Sheesh.
I gotta come up to speed on this, sounds like some good investing opportunities may be around.
It appears to me that in my area, rents skyrocketed with housing prices. Housing prices have now come down but rent prices have not been touched one bit. There may be a rent bust as well.
I would NOT pay someone $1200 to rent their basement. $600 seems more reasonable. How can anyone start a correction without going homeless? Afterall, they are renting. Sounds like monopoly to me without further drop in housing prices.
Why you guys keep adding replies in this nameless thread? LOL.
Patrick, can you redirect replies under dajanara's new thread with the same question?
Hi,
Lots of posts have been floating about strategic foreclosures and its financial and moral implications. I hope you can take a few minutes to read through my post and help me by giving your honest opinion.
We bought a 3/2 condo in downtown SJ for 480K. it's now worth 270K due to a)market correction and b)lawsuit (HOA versus the builder).
We put 63K down. :(
Interest only loans cost us $1,900/month
HOA fee is $400/month
property taxes ~ $300/month
so we pay about $2,600 a month to live there.
We do have plenty of money to put down on a nice house, but think houses will continue going down for the next few years.
So we can either:
a) stay put in the condo and save money so when houses come down in pricing (assuming they do), we can buy a nice house and strategically foreclose on the condo at that time or
b) strategically foreclose now and rent for 4-5 years until our credit is fixed (note: this foreclosure would be the only spot on an otherwise perfect credit for both of us).
It seems to me that we are best-off staying put because renting a nicer 2/2 would cost us more than we pay now (after tax benefits are accounted for).
Thoughts? Thanks in advance.
#housing