I’m looking to move in the near future, and I’m trying to decide between an apartment or a condo. I’m in my mid-20’s and single, and don’t have much tying me down or other people affecting my decision. I’m going about my search planning on living by myself, but I’d say there’s a good chance I’d have roomate options as well.
I’m also in the market for a new job, so there is the chance I could want to move again fairly quickly. I really don’t have a timeframe for changing jobs, so basically it could happen anywhere from next month to next year or maybe even never. The jobs I’m looking at are pretty much in the same area I’m in right now, so I’m not planning on drastically relocating or moving across the country or anything. Even if I get a new job I’d say it would be within 25 or so miles of where I’m at now.
Even if/when I do switch jobs, I’d say there’s a very good chance I won’t need to move. But, I wouldn’t want being tied down to a mortgage to hold me back if I did decide to move further away. So, any rules of thumb about moving shortly after buying a condo and getting a mortgage? If I end up buying a place, and then want to move again in a few months, will that work? How much will I be screwing myself if that happens? How long would I need to stay in order to not be making a mistake?
I’m sure others who know more about mortgages and homeownership will be along shortly, but several years ago I went to a “first-time buyers” seminar out of curiosity and I remember hearing something like this: with a traditional 30-year mortgage, you need to invest around 7 years in your home (the type of place – townhouse, house, condo – doesn’t matter). I don’t remember why, and that seminar was a long time ago, and I’ve never had a mortgage (and am not a realtor, etc.), but that’s what I remember. Anyway, seems to me that the costs and hassle of buying a place would make it very not worth your while to buy and then move only months later – plus, it doesn’t seem like that’s enough time for the market to change in your favor, which means at best you’ll break even but could wind up losing money.
From the info. in your OP I’d agree that you should try to find a month to month rental until you have a better handle on your future.
I don’t know much about condos, except that it’s not an option I’d even consider, too many pitfalls and strings attached to buying and owning one.
In buying a house, the long standing rule of thumb is a minimum of three to five years, but there are a lot of variables. 3 to 5 years would probably be your break even point in a static market, or a market w/ average appreciation of value. If you expect to turn a profit you should probably figure on owning the house for seven to ten years and keep it well maintained, perhaps even making some capital improvements.
Real estate speculation, in a hot market, is a dangerous game and for everyone who makes a profit, there are probably 5 to 10 that lose money.
Based on what you are describing, if the monthly costs are comparable or the rental is cheaper, renting would probably be the best way to go until you figure out what you want to do long-term.
All else equal, (it never is) in general, single-family homes are easier to sell and appreciate quicker than condos. A much greater fraction of the condo market, vis a vis single-family homes, does not appreciate at all or depreciates. YMMV
Condos are great for retirees and young singles or marrieds with no intention to have children. YMMV, but I would not recommend anyone getting into a condo for less than five years, at the minimum.
Ending a lease is easy. Selling a condo can be really time consuming and expensive.
