What does DU think about buying a condo in the current economic climate?

[Pierre.Suave]

Title says it all.

Right now I am renting here in South Minneapolis, and have been considering buying a condo in Downtown Minneapolis for a year now, waiting for some good news about our country and our economic future. There has not been any.

it seems to be getting worse. Does the market being low make it a good time to buy even though the economy is going down?

If you could, would you just convert all your money to euros and move to Germany?

[kwassa]

1. Shop around a lot.

Condos are way down in most areas. It could be a good time to buy, particularly in more "prestigious" addresses. Start reading ads and doing research. It is a buyer's market, you'll probably find major concessions from the seller. You can take your time, too, as they are not being snapped up.

The real estate market may not be directly affected the local economy in Minneapolis. It has been moving independently for the past couple of years, though the downturn and subprime mess seems to have scared the loan industry.

[Midlodemocrat]

2. I would be very cautious. During the last real estate downturn

our condo went from being worth $175,000 (what we paid for it in 1989) to $99,000. We couldn't get a realtor to list it for $103,000 which is what we owed the bank.

We finally sold it, but the neighborhood had gone completely to hell. Yuppie types who needed to relocate and couldn't sell were just leaving the keys on the counter and walking away.

Rentals became the norm. It was horrible because the condo association had all but disbanded and there were condos with 10 people living in a one bedroom/one bath unit.

It was horrific. And, we were one of the lucky ones. We finally found someone who wanted to buy the unit for his father and paid cash, so we got out for what we owed the bank, but lost all of our equity. Bitter pill to swallow.

[NewJeffCT]

3. Don't settle for any condo

Make sure it's one you really want and that you can live there for several years.

It might be a good time to buy, if you have the cash to put down a good downpayment. Don't plan on making any profit before 2010 or so, though.

make sure you get a good real estate lawyer to go over any purchase contract.

Do your research as well - find out what similar condos sold for in recent months.

[NMDemDist2]

4. the housing market hasn't hit bottom yet by a long shot I don't think

check out the economy forum for lots of threads on the mortgage market and the housing bubble.

If I were in the market, I'd stay on the sidelines for another year.

YMMV

[LSK]

5. I agree with that

and if you do buy one, make sure its fixed rate with 20% down.

[LynneSin]

6. Avoid the condo - I almost bought one

I really thought I wanted a Condo - just the simple life of renting now in a place that I would own.

But remember - you don't own the condo, you own the space within the walls of your condo. And you're at the mercy of the condo association even if some of the charges, fees and assessments make absolutely no sense to you whatsoever. You may not have a balcony but if balconies are refurbished you'll have to pay the same amount as everyone else. You may not have secured parking available for your car but you'll still have to pay that secured parking fee.

[grace0418]

8. Our remedy for that was to buy a new gut rehab in a building with only a few units.

We were founding members of the condo association and helped make all the rules. It's been really good for us.

[grace0418]

7. If you're only buying it's a great time, as long as you want to live there for

a few years. Be choosy, find one you really love. You have that luxury right now. We didn't when we bought our place but we got lucky, thank goodness. We were going to sell this year but decided to wait.

[Bucky]

9. Pick a good location and monitor it for a coupla months.

Houses should continue dropping in price for the next 6 months. After that, assess whether the property you want is in a neighborhoon going to pot or if it's just being market-corrected.

[Pierre.Suave]

11. I have been watching it fr 6 months.

The condo, right in downtown Minneapolis, has been through 2 agents, a price drop, a relisting with a new agent, and a price increase back to the original price.

[Bucky]

12. Oh, then you need to buy it after waiting until three months ago

[Pierre.Suave]

14. So you are saying

I should have bought it 3 months ago?

Are you my Realtor? lol

[Pierre.Suave]

10. If it matters

this condo is beautiful, in a brand new building, and has never been lived in.

I like it, however it is EXPENSIVE. I am hoping that the seller will be willing to deal on price.

my biggest fear is what happens when, after I buy it, the economy takes a DIVE, as it looks like it will.

I am planning on living there for at least 10 years right now, maybe more.

[flvegan]

13. I'd buy.

Of course, that's Florida. I think we've hit rock bottom here, and we'll stay here for a while.

You also get the nifty interest write off. There's talk of lowering the prime...again.

Keep in mind: condo fees, etc.

[quip]

15. Buy a house; a fixer upper in a good neighborhood.

That will give you your best return IMO. http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=105x7351411">Having said that and at the end of the day, IANAR. :hi:

[Pierre.Suave]

16. Hey temeah

are you trying to convince me to move OUT OF the greatest place to live on EARTH (Minneapolis) and to the EVIL suburbs like that place the rest of the assholes live? I think they call it Edina...

:P

Actually, I like being downtown close to all the strip clubs and sex shops...:rofl:

edit: and don't forget the crack dealers and prostitutes...

[quip]

17. Not at all.

I'm saying buy a house in the miny apple. You can't be allowed to live in Edina until you graduate from med school. Sorry! :hi:

[Pierre.Suave]

18. If thats the case

how the hell did they let you in...

:rofl:

[quip]

19. I was born into Edina (my dad is a surgeon)

I'm series about this stuff, man.

[Pierre.Suave]

20. man...

I cant catch a break...

:hi:

[quip]

21. Don't forget what they call the guy who finishes last in his class in medical school...

"Dumbass"

But at least it's DR. Dumbass! :hi:

[Pierre.Suave]

22. All the better to be a

proctologist then...

[quip]

23. A smart choice in the end.

[jakefrep]

24. If you can find one big enough to accomodate all of us,

then by all means, go for it!

But you'll need to have a big room with rubber walls for the GD/GDP crowd.

[Pierre.Suave]

25. That is what has made finding the right one

so difficult.

[LeftyMom]

26. You need local advice.

Our market's utter shit but still headed south, so unless somebody absolutely falls in love with everything about a house and gets a sweet deal, waiting's probably best here, but in other places the market may have corrected already. In the Twin Cities? I have no clue, and neither do most of the people on DU.

Get local advice from somebody who knows their shit and isn't trying to score a buck off of you.

[Nickster]

27. Don't catch a falling knife. Real estate values are still on the way down. Stay on the sidelines for

now.