Buy Condo/Sell House

thats dangerous

what makes you believe your house will sell come 09' ? because if it doesn't sell, you are putting yourself in the same demise and positions as that of the recent flippers.

buy house, only to think it will sell or be rented out, and then go bankrupt.

In these times I would not do anything that depended on my selling a house.   I too plan to sell my house in early '09 (positive thinking!) yet I will not look for my next place to live until I have sold it.   Can you wait until you have sold your home (and you see what your financial situation is then) before buying a condo?  Just ask yourself what happens in your scenario if you don't get to sell the house in the spring.

Wow!  That may seem like a great plan, but it is dependent on everything going your way.  In this market, you should take it one step at a time.  Sell the house first then buy the condo.  You dont want to double mortgage right now.  People are losing their jobs and may not be able to make rent.  You also run the risk of bad renters who will trash the place and then you could lose a chunk of what you are saving.

The condo I would buy is next to gorgeous town houses to be built. So I would buy now, rent (very desirable area as can walk to town center) and stay where I am which is living in my parents house for free. In the spring, heavily market my house, I have my tenants on board as I am going to give them an incentive if it sell with their help. If it doesn't sell, they would stay another year. I continue to stay at my parents. in 2010, I move into my condo and sell my house again. The important key here is that I always have my parents house to live in through this process and I can save between 3-4 thousand a month. I will not lose my job, but may lose an opportunity for a golden handshake a long the way....moot point though, condo went under contract. Carol

Risky, risky, risky.   Your previous posts have outlined how concerned you are about the cash flow with regards to the house that is rented out.   If you have the financial reserves to cover three to six months with no renters in either of them, and the house not selling in 2009, then go for the condo.   If not, forget the condo until you've sold the house (i.e. actually got the money in hand, beyond the offer stage)

As my "neighbors" above me have said....quite risky.  This plan would have been absolutely common place several years ago; but today---nothing should be left to the possibility of your home selling.  Hang in there---

not a good plan. Basically, if the market goes downward, which is far more likely than upwards, you will double your losses on real estate. Stay at your parents, save, then either sell/rent your house later. Either way, in a year you will be in a strong position to buy your condo. What if that new townhome development hits a brickwall, and has difficulty selling out? they will auction and get rid of the rest, trouncing values in the area. Not saying it will, but that is a sizable posibility these days.

Wait the year, and you will be in apowerful position to take advantate of any market weakness.

by the way, if your other home rent covers mortgage, you might think of keeping it forever too.

Hi Carolagdyr !

If you rent out the condo from $100 to $200 a month, then a lot the renter will rent your condo.

I do the same

Hi Carolagdyr !

If you rent out the condo from $100 to $200 a month lower your area rent market, then a lot the renter will rent your condo.

I do the same

sorry

Once I get pass the "can live with parents" for free philosophy, IMHO Azrob has given you solid advice since we do not have specific details of market area you are asking about.  Many of the most recent events in the economy (unemployment for one) have not fully impacted some areas yet. If you feel your plan is a good one and decide to move forward then becoming informed about everything in your local area that could affect your purchase would be wise.  Remember there are many people in foreclosure right now and they all thought they had a good plan.

Thank you for all your posts. Living with my parents at 52 in not a panacea. It is 12 miles from the town a love, remote and secluded. I pay the utilities. I am fortunate to have had this opportunity, but it is not a life. Which is why I am trying to create some opportunities going forward. The condo area is in Money Magazines Top 100 places to live, it is right in the center of the town I have my rental property/house in...houses on the periphery like mine have lost value, but the houses and condos in the center have done nothing but go up, up, up! I appreciate all your feedback, have made to major financial blunders in two years....buying high a house I can't afford and not exactly location...fixing it up and then not selling when I should have one year later. If I had, I would have been back in the market now and would have that condo! As far as home cost and rent, rent pays all but water now, but I probably am as close to getting the max on rent for the house. Taxes will go up next year and with maintenance vulnerabilty, I would rather sell even at a loss, take my cash, combine with what I have saved and move on....

Check out www.bluebacksquare.com. The condo is not right in Blue Back, but it is within walking distance of about 1/2 mile. Just beautiful...and I work there too part time (digging myself out of this mess!) in a store called Lucy...check it out!

Hi Carol,

Above all, please consider that free advice is usually worth what you paid for it. Continue to do your homework... sounds like you are on the right track.

Good Luck:)

Rob

Due diligance is a must.  Recommend consulting an accountant or CPA to make sure you are taking advantage of the taxable gains, losses, and depreciation associated with rentals and with selling. Have you lived in the home you are thinking of selling 2 of the last 5 years?