Buying a Condo

Started by kreme
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kreme

kreme

Always Hungry
10+ Year Member
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So, my parents have talked to me about buying a condo in the city at which I am matriculating to this August. They will be paying cash in full, and are looking at this possibly as a short-term investment, and plan to sell at the end of 4 years. They figure they have a trustworthy guy to manage their property, and can kill two birds with one stone by showing some altruistic love to their offspring.

I was hoping to just get answers from people that have seriously considered getting a condo, NOT A HOME.

I'm also looking at only 2 bed 2 baths to rent out to other med classmates, and trying to get feedback on what it was like collecting rent from your classmates.

I personally want as little responsibility as possible so that I can focus on medical school, but it'd be great to have something to call my own.

Oh, there's also a financial incentive to own property by about $60,000 because I could possibly establish residency in-state, as I'm an OOS.
 
Use the second bedroom as an office. Rooming with someone is always a gamble, and it's even worse when they are paying YOU rent.

As far as in-state vs OOS; you generally don't have to own anything to establish residency in a state. Just establish your permanent residence there (i.e. getting new driver's license, etc.) Also, some states require a certain length of residence before giving you IS tuition. So just do the research - generally the school's financial aid department would be able to help you out.
 
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colbgw02 said:
I'm sorry, but what was your question?
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Have people that have had condos in medical school been able to deal with the maintenance requirements and did they rent out rooms to their classmates? How was that?
 
kreme said:
Have people that have had condos in medical school been able to deal with the maintenance requirements and did they rent out rooms to their classmates? How was that?
Click to expand...

The maintenance on my condo during med school was minimal. That's one of the upsides of a condo with an association. That's also the downside - having to deal with an association.

Never bothered with a roommate. It was a 2-bedroom, but it would have felt cramped with someone other than a SO. So can't help you there.
 
My friend got a townhome and has rented out to multiple people through our four years. He seems to have done tolerably well. I think part of it is luck of the draw, though--he got roommates where it wasn't really an issue to collect rent, but someone who may lapse a little, you have to be willing to have that financial conversation with them. Which is why I would be a terrible landlord.
 
colbgw02 said:
The maintenance on my condo during med school was minimal. That's one of the upsides of a condo with an association. That's also the downside - having to deal with an association.

Never bothered with a roommate. It was a 2-bedroom, but it would have felt cramped with someone other than a SO. So can't help you there.
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What's the problem with associations? I'm looking at potentially getting a condo and there's condo dues that I'm assuming go towards an association.

I want roommates but I think I'd be a terrible landlord, too...
 
Muad'Dib said:
What's the problem with associations? I'm looking at potentially getting a condo and there's condo dues that I'm assuming go towards an association.

I want roommates but I think I'd be a terrible landlord, too...
Click to expand...

Speaking generally, they're miserable organizations who manage to piss off everyone with whom they interact. I lived in condos for 8 years (in different states) and I'll never go back for many reasons, chief among them that I never want to have to pay another dime to an HOA. Specifically, they often have the freedom to increase their dues whenever and to whatever degree they see fit. Also, state laws frequently grant them broad powers to collect on those dues, to the point of actually taking possession of your condo. And, of course, short of any utilities included, the fee is "lost", in that it's like paying for rent. There's no return on the investment, like there would be if you took that monthly payment and directed toward the mortgage on a house.

Seriously though, don't just trust me. HOAs are pretty notorious and infamous for being a huge pain in the butt. That's not to say that it's a deal breaker with respect to buying, just that it's one of those hidden gems of condo ownership that no one thinks about until they're sticking you with an assessment because no one bothered to maintain the roof for 30 years and now it requires immediate replacement.
 
Condo living can suck. Essentially you're paying a mortgage on an apartment property, unless it's one if those detached condos. Get an end unit or a top floor unit. Most of the newer communities are cheaply constructed and sound (especially footsteps) will be an issue if you have dingus neighbors. If you own, you can't just move out at the end of the year.

Maintenance and utilities are supposed to be largely covered by the HoA, assuming they do their damn jobs and aren't in the red. Find out about who manages the community and if the HoA is solvent. Otherwise they may start hitting you with assessments on top of the HoA fee.

You'll probably save more money by renting a house or condo with a fellow student while in school. I bought because I knew I'd be in the same city for 8 years. In retrospect I should've held out and bought a house.
 
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