Post # 1
Fiance and I are currently living in my condo that I bought a few years ago. The loan balance is little higher than what units are selling for right now. So if we sold it we would likely lose money on it. We have a decent down payment saved up right now. Both our commutes to work are long so moving would be ideal as we are spending a lot on gas right now.
In my mind we have two option:
1. Sell the condo and take the loss which would cut into our down payment. We would only be able to afford a house that would be around 225,000-250,000. But it would be our own house and no more condo living.
2. Wait it out possibly years and sell when the condo is worth more which means houses costs more. We would probably be able to afford close to 275,000-300,000+ depending on how long we wait.
Do we have any other options? Anyone have reccomendations on what we should do?
Post # 3
What about renting it out? If you already have the downpayment for your next house then you don’t need to close before you can buy. Line up a renter.
Post # 4
I agree. Rent it out with enough to cover the mortgage and buy another property jointly. Your combined income should be enough to get you a 2nd mortgage, especially if your proven income from the first property yields you a profit (it is then additional income).
Post # 5
Whatever you do, don’t walk away from the home. I think that’s completely irresponsible, so I’m glad that wasn’t an option.
I would rent it out for now and just get a new property.
Post # 6
I would agree with the PP’s to rent it if you can. If that’s not an option, I would go with your first option listed, sell it now and buy a house now.
Post # 7
I should have mentioned that renting isn’t an option. Rentals for the condos dont cover the mortgage/fee because fee just increased since they are doing some work on the roofs of the buildings. We would lose about 200 a month if we rented.
Post # 8
Also, consider that mortgage rates are low right now. You are likely better off long-term by buying something now. If you wait, you may get more money for the condo due to rising housing prices and you may not lose money on it, but the future house will also cost more due to rising prices, and the interest rate could be higher.
Post # 9
@eastcoaster: I would sell now and take the hit and secure a home while mortgage rates are so low. If you wait, not only will your condo sell for more, but your new house will probably cost more than it doesnt in todays markets too. It’s a percentage game mostly. So if you condo is worth less than your potential house, if your condo goes up in value 5%, so does the house probably (roughtly), but the monetary value will go up a lot more for a the house than the condo.