# Buying a condo advice **URL:** \ **Category:** In My Humble Opinion\ **Created:** [January 14, 2013, 9:21pm UTC](https://boards.straightdope.com/t/buying-a-condo-advice/647222 "2013-01-14T21:21:17Z")\ **Posts on this page:** 9\ **Page:** 2
**Author:** ![artemis](https://avatars.discourse-cdn.com/v4/letter/a/91b2a8/32.png) [@artemis](https://boards.straightdope.com/u/artemis)\ **Post date:** [January 16, 2013, 4:59am UTC](https://boards.straightdope.com/t/buying-a-condo-advice/647222/21 "2013-01-16T04:59:22Z")
> [@Siam\_Sam](#): > > Which is what happened with our building painting. And we also had to pay extra for some elevator repairs last year even though we personally usually just take the stairs. (It’s a 36-floor building, but we’re only on the sixth. It’s about the only exercise I get.) > > But fortunately for us, due to the size of the compound our share is never oppresive. I’d actually like to see our condo fees go up. It was pointed out at one annual meeting that our condo complex has the lowest fees of any in this area. But most of the owners always vote against raising the fees. Clearly the board that ws originally running my parents’ townhome complex moved to Thailand when they retired! My parents were hit for special assessments three years in a row for for roof replacement, siding replacement, and exterior painting - all things which should have been anticipated and planned for yers in advance. But too many residents didn’t want the regular fees to go up. Why that’s worse than suddenly being faced with a several-thousand dollar unanticipated bill, I’ll never understand. > [@](#): > > But I still prefer condo living to a house. It sucks not being able to keep a dog, but not dealing with yardwork is heaven. Boy are you ever right about that! I splurge and hire a lawn company to cut my grass, plus a landscaper to clean hings up in the spring and someone to clear the driveway in the winter, but there STILL always seems to be something happening outside I need to deal with. During this time of year, it’s having to move the enormous blocks of hardened snow and ice the city snow plow throws onto the end of the driveway after my driveway’s already been cleared. I can see the day coming in a decade or two when I’ll want to move just to get away from all that. ---
**Author:** ![ethelbert](https://avatars.discourse-cdn.com/v4/letter/e/958977/32.png) [@ethelbert](https://boards.straightdope.com/u/ethelbert)\ **Post date:** [January 16, 2013, 2:35pm UTC](https://boards.straightdope.com/t/buying-a-condo-advice/647222/22 "2013-01-16T14:35:52Z")
Since you are talking about buying in a new building, I might look into that company’s track record. Are there lawsuits pending against them in any of their buildings? You can also get involved in the decision making process. Let the board know you are willing. Oftentimes board positions go begging because people don’t want them. This can be annoying, but there is no free lunch. Owning property is a job. You can also save for those unanticipated costs yourself, just as you should do with a home. ---
**Author:** ![Siam\_Sam](https://avatars.discourse-cdn.com/v4/letter/s/d78d45/32.png) [@Siam\_Sam](https://boards.straightdope.com/u/Siam_Sam)\ **Post date:** [January 17, 2013, 3:34am UTC](https://boards.straightdope.com/t/buying-a-condo-advice/647222/23 "2013-01-17T03:34:21Z")
> [@ethelbert](#): > > Since you are talking about buying in a new building, I might look into that company’s track record. Are there lawsuits pending against them in any of their buildings? Yes, this is important, especially in a place like Bangkok. We bought from a very well-respected company, LPN Development. But there are other builders out there with proven track records as shysters, and _still_ they get suckers to buy their lemons. ---
**Author:** ![madmonk28](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/madmonk28/32/20811_2.png) [@madmonk28](https://boards.straightdope.com/u/madmonk28)\ **Post date:** [January 17, 2013, 2:28pm UTC](https://boards.straightdope.com/t/buying-a-condo-advice/647222/24 "2013-01-17T14:28:55Z")
Well this is the place we’re kind of maybe considering to start daydreaming about looking into, just to give it some context [http://www.citycenterdc.com/condominiums](http://www.citycenterdc.com/condominiums) ---
**Author:** ![brickbacon](https://avatars.discourse-cdn.com/v4/letter/b/898d66/32.png) [@brickbacon](https://boards.straightdope.com/u/brickbacon)\ **Post date:** [January 17, 2013, 3:13pm UTC](https://boards.straightdope.com/t/buying-a-condo-advice/647222/25 "2013-01-17T15:13:58Z")
1. Where in DC are you looking to buy? 2. Can you afford both mortgage payments if need be? 3. Are looking for this to be a good investment, or just a place to live in the future? 4. Do you have time to look for tenants, make repairs, etc.? ---
**Author:** ![madmonk28](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/madmonk28/32/20811_2.png) [@madmonk28](https://boards.straightdope.com/u/madmonk28)\ **Post date:** [January 17, 2013, 3:24pm UTC](https://boards.straightdope.com/t/buying-a-condo-advice/647222/26 "2013-01-17T15:24:48Z")
Again, thanks to everyone for taking the time to help me think through this. **brickbacon** , herea are specific answers to your excellent questions: 1. In the post above yours, I have a link to where we are looking at (corner of NY Ave and 9th); 2. We could, although that would suck; 3. Both, ideally. DC prices are climbing again and never really dropped. Recently, a rowhouse in NE not too far from Union Station whent for $400k over asking, so it’s either buy before it gets inane again, or wait until the madness subsides 4. Ideally, we would have a real estate agent manage that for us. ---
**Author:** ![brickbacon](https://avatars.discourse-cdn.com/v4/letter/b/898d66/32.png) [@brickbacon](https://boards.straightdope.com/u/brickbacon)\ **Post date:** [January 17, 2013, 7:11pm UTC](https://boards.straightdope.com/t/buying-a-condo-advice/647222/27 "2013-01-17T19:11:46Z")
> [@madmonk28](#): > > Again, thanks to everyone for taking the time to help me think through this. > > **brickbacon** , herea are specific answers to your excellent questions: > > 1. In the post above yours, I have a link to where we are looking at (corner of NY Ave and 9th); > 2. We could, although that would suck; > 3. Both, ideally. DC prices are climbing again and never really dropped. Recently, a rowhouse in NE not too far from Union Station whent for $400k over asking, so it’s either buy before it gets inane again, or wait until the madness subsides > 4. Ideally, we would have a real estate agent manage that for us. I own and condo in DC (Columbia Heights), and now live just outside the city in a house. My overall experience being a landlord has been positive, but I we initially lived in the condo, deciding to keep it after the fact. we were looking into doing essentially what you are proposing, but a pretty narrow range of investment parameters that suit our needs. Feel free to message me if you want to know what we have been looking at, etc. That said, while you are right that property values in DC in general have not really taken a hit, and are in fact still going up, the high-end condo market was/is far more volatile. Especially in buildings with high fees in established areas. Many of those properties have been foreclosed on because the owner could never sell them. I don’t think you will lose money per se, but a building like that is not such a great investment. Doubly so if you plant to have someone else manage things for you. That usually costs 10% of the monthly rent. So not only do you need to cover the mortgage, condo fees, taxes, incidentals (like months without a tenant), but also 10% more off the top. Plus, you also need to consider you will eventually move into a place that has been lived in by people, who often don’t care too much, for x number of years. The larger issue I see is that 20% of the units in that building are set asides for low incomes folks. Folks that you, as a property owner there, would be subsidizing. It’s all noble and good, but does not make for a good investment for someone who wants to be somewhat hands off. Just look at a number of the building built in the last 3-4 years around the Columbia Heights and Petworth metros. First they couldn’t sell them, then they couldn’t rent them without large incentives. Not sure what type of place you are looking at, by they say they places will sell at 400k+ for a 1 bedroom and 700k+ for a two bedroom. If you put down a hefty 25% on a place that is 450k at 4% interest, you are still probably looking at about a $1600 before taxes (probably another $200/month), and condo fees (I would guess at least $350/month). So you need to rent it at (conservatively) roughly $2400 every month (that includes that 10%) without fail just to break even. And to be honest, you really want about $150/month buffer for when stuff breaks, etc. That proposal gets easier over time, but it’s still probably a bad way to invest $100k+. Have you just thought about investing in a REIT, or something similar if you are interested in taking advantage of rising housing prices? ---
**Author:** ![madmonk28](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/madmonk28/32/20811_2.png) [@madmonk28](https://boards.straightdope.com/u/madmonk28)\ **Post date:** [January 17, 2013, 8:14pm UTC](https://boards.straightdope.com/t/buying-a-condo-advice/647222/28 "2013-01-17T20:14:41Z")
Thanks for the excellent post, which I’ll read more carefully, but what is a REIT? Like I said, we’re in early stages and in no rush. Mostly just looking for a starting point. ---
**Author:** ![Siam\_Sam](https://avatars.discourse-cdn.com/v4/letter/s/d78d45/32.png) [@Siam\_Sam](https://boards.straightdope.com/u/Siam_Sam)\ **Post date:** [January 18, 2013, 4:20pm UTC](https://boards.straightdope.com/t/buying-a-condo-advice/647222/29 "2013-01-18T16:20:45Z")
A REIT is a [real-estate investment trust](http://www.investopedia.com/terms/r/reit.asp#axzz2ILR4wKXD). [Previous page](https://boards.straightdope.com/t/buying-a-condo-advice/647222.md?page=1)