Should I buy my townhome?!
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  1. #1
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    Default Should I buy my townhome?!

    Hey there! First forum post... I’ll get right to it.
    I’ve been renting a townhome for 4 years and now my landlord is selling the property. She asked if I’d like to buy for 78K when she’d list it for 82K.

    I’m completely debt free.
    I have 6 months of expenses in an emergency fund.
    Annual take home pay-$85,000

    Here’s the caveat... there is an HOA fee of around $265/mo that is making me hesitate.

    It’s in a growing area of San Antonio, TX
    2 bed/2.5 bath 1,250 sqft

    If I purchase, I’d pay it off ASAP and would like to do renovations to eventually either rent or sell.

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    If I purchase, I’d pay it off ASAP and would like to do renovations to eventually either rent or sell.
    If you like the condo and would like to continue living there, it sounds like a good plan to buy it. The loan on a $72k 30 year loan would be about $375/m. And the HOA ($375) covers the insurance, taxes, exterior maintenance - your monthly payment would be about $650.

    As for prepaying the loan, I would avoid that. Loans cost about 4%/yr, that is very cheap use of capital - instead of spending your money to prepay a 4% loan, invest your money where it will earn more than 4%.
    As for renovations - they will be a loss to you. Eg, if you spend $25,000 to update the interior, it will add only about $10k to the appraised value, ie, you will lose $15k. Far better to sell it 'as is'. In general, spend only what you will get to enjoy personally (with the knowledge that you will lose that money when you sell it).

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    Can I gen an update for this? I am really curious about what you bought . I really want to know your decision. In my opinion I can say that this is quite expensive. I am saying that you should buy a house somewhere else. Like India, just take a look at this tutorial about how to buy a property in India. I think that it will be really helpful for you. You should change your place where you live, in this way you can make a lot more friends and you will see a lot more places and towns or even countries.

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