Profile picture for chulo11378

there's a condo that i'm interested in that is charging 390,000 for the condo or 1550 to rent, which

which one should i choose?
  • March 28 2009 - Middle Village
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Answers (4)

Profile picture for chuckdog24
Try before you buy!!
Why make any commitment that you don't have to?
Mike hit the nail on the head, a $390k mortgage is approx. $2,100 just for the note&that's not including taxes or condo fees!!
There's also the interior maintenance costs above & beyond that!! (i.e. cost to replace a fridge that dies)

Any tax break isn't enough to close such a substantial rent vs. own differential.

Renting in your situation:
a) Is way less cost than owning
b) Keeps your capitol flexible to choose an investment option that meets your current needs
c) Prevents the substantial risk of "catching a falling knife" & suffering continued value losses (as is the current trend in the NY/CT areas)
d) Keeps you mobile, should anything change with your job & family.

What are the advantages of owning in this example? Having the "freedom" to spend $ on interior improvements is about all that I can come up with. That's quite a chunk of cash & risk to take to fill an "emotional" need like that.
  • March 29 2009
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first see if you can rent with a buy option if you really want the place. maybe offer a larger security deposit duobling as a potential down payment showing your seriuous about the property.

if you cant make that work rent and go for an extended lease as that rent is about 1/2 of what a morgage would be at that sale price.
  • March 29 2009
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Looking at the options, you need to determine how much your downpayment is to determine your net cost, in addition buying gives you many tax advantages that renting does not.  Renting guarantees that you will not have equity at time that you vacate, unless you rent with option to buy.  I have negotiated with one of the builders' in middle village to give credits as high as 75% of the rent towards a purchase later on if they decide to buy.  Renting may be a good option if you feel that the market will continue to drop and can buy at a better price later, but the unit(s) you may be interested in may not be available.  If you would like to view the building that has the credits, drop me an email at jspariosu@earthlink.net
  • March 29 2009
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The mortgage for $390,000 would exceed $1,550 a month. 
  • March 28 2009
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