Condo costs in the greater Davis area

[duffless2323.livejournal.com]

Do any of you know the going rate for condos in the greater Davis area (by that I mean places where I could walk to Davis Square in under 20 min) but still be in a good/decentish area. I know right in the square would be very pricey - I'm just kind of exploring the idea with each rent check I flush down the toilet,  prices seem all over the place when I look on CL. 

What do you think would be a expected cost for 1 or 2 bed? Have any of you looked lately, if so what are you seeing?

Thanks

Comments

Weighing purchasing

[chumbolly.livejournal.com]

When my wife and I decided to buy, the first thing we did was go to lots of open houses, for months. That will give you a very good idea of what you'll get for your money. We got so we could walk into an open house and once we knew the square footage, we could guess the asking price within a few thousand dollars. Having that gut feeling will make it much easier to make an offer without feeling like a sucker.

Next, talk to a mortgage broker to find out what you can afford. I'm of the opinion that when purchasing, the more important number than the actual price is the monthly cost. And the biggest determinate of monthly cost is current interest rates. So if interest rates are low, you can afford a lot more. I would also suggest that you borrow significantly less than the broker says that you can afford, though it could be that lending standards have gotten a lot tighter than when I purchased.

Then add up the monthly mortgage amount, condo fee, taxes, water bill and maintenance and figure out what your total monthly cost will be. Then, figure out how much you'll save in the mortgage interest deduction off your federal taxes--that can be a big number. In my case, the deduction probably saves me over $300 a month. All told, my place probably would cost me about the same to rent as it does to own, though of course I can do things like renovate it and make it my own that I couldn't or wouldn't do if I rented. Plus I get to pocket any appreciation when I sell. Fortunately, I bought six years ago, so I'm not underwater on the value.

Lastly, don't think of buying a house as an investment first and foremost. Think of it as your home, that you'll probably be in it for a while, and that the ups and downs of the market aren't so important. Viewing it as an investment will drive you bonkers. On the other hand, you never want you home to be noose around your neck, so make sure you can live with the expense over the long term, even if you life situation changed dramatically. My income went from ridiculous to zilch for a while, but I had savings and a comfortable mortgage payment, so it didn't kill me while I got my income back in line.

I hope that's helpful, and best of luck!

Re: Weighing purchasing

[sueb226.livejournal.com]

Well said!

Only thing I would add is to have a rainy day fund of a few thousand dollars kicking around because you never know when the fridge might die or you will need to do some 'surprise' repairs