Buying a condo right after college?

**esb3357** · 12-10-2011, 02:47 PM

I went to school in Rochester, NY so I understand the area. My husband and I are also young (23 and 25) and we just purchase our first home. As long as you are set for the expenses and extra work that goes with it. Personally I would buy a foreclosed house that has cosmetic issues. We were able to buy a single family house because it was depreciated over 50k due it needing paint and new carpet. A lot of our friends who are single, buy a house and then rent it out to their friend. Rochester has lots of co-ops and students, you rent your rooms out for extra equity. Never buy a house you can't afford without roommates. It should just be bonus money.

**MonkeyMama** · 12-10-2011, 05:11 PM

I personally bought a condo pretty much right out of college - and it was a fine choice (much cheaper than renting!)

That said, we bought because we *knew* it was where we wanted to settle for the long run. If you are moving to a new area, I think it's more prudent to rent and wait a bit to see how you like the area, etc. I also think if you plan to live somewhere 5-7 years, it's good to make sure you are happy with the place in case 5-7 years turns into eternity. Ask anyone stuck in an upside down house. (I'd personally rather buy something slightly nicer than just buy the first thing I could afford). In our case, we chose to move in 2 years, but it was mostly because we abandoned our plan to ever afford a house in original city. If we could never afford a house AND never afford to sell our condo - was okay since we went something we could live with for the long haul. (Would have been happy with 2 bedrooms, but got a good deal on 3, and could foresee possibly being stuck for a long time, raising kids there eventually, etc.). What can I say - we plan ahead. You don't know how many people I know *stuck* raising families is extraordinarily small spaces. Anyway, just stuff to think about.

I wouldn't buy without 20% cash down and decent cash savings, in addition.

**ROC-ENGR** · 12-11-2011, 12:39 AM

Thanks for the responses. Just to clear things up, I am from Rochester originally, and most of my family is still there. I went to school out of state, but am coming back home to work there. You make a good point MonkeyMama to plan for the long run, but I really don�t see kids in my future. I know it sounds kind of sad, but I just really don�t see myself raising a family. I guess you never know, I�ve heard people say the same thing. Not that I don�t like children, I have a nephew that I adore, but I don�t� really know�. Maybe my priorities will change later down the road? It is a good point to raise though, or at least to consider because priorities change as life goes on. There actually is a place on Vick Park B right near Park Ave that I really like (there are actually two of them for sale), but they are asking around $160k and $190k for a a 1 bath 1 car garage, and 2 bath 2 car garage respectively. I would love either of those (especially the latter), but I can�t afford either, and can�t kid myself, unless I lived with my parents for 2 years.
I do hope to save about 75% of my salary for those 4 months (~$8,000) on top of what I already have. I know 20% is the standard (to avoid PMI and whatnot), so I think I should be able to put that down and still have somewhat of a reasonable cushion leftover. I hope to have my girlfriend move in with me to provide some assistance, and maybe a roommate, but as suggested, I won�t DEPEND on it, it�s just a bonus.
Keep the thoughts/comments/ideas coming!
Thanks!

**lucyreedx** · 07-29-2013, 10:51 PM

condominium drawbacks

There are many things you should consider before you can buy condo. Condos have an appeal that traditional homes lack, as they are often cheaper, never require gardening and are often nearer to urban places than the suburbs. However, there are a few condominium disadvantages a prospective buyer should be familiar with.

**YLTL_Dan** · 07-31-2013, 03:25 AM

I rented for five years after college and don't feel like any of the money was wasted. Renting has major advantages such as flexibility, flexibility, and most importantly, flexibility

.

It was a little different for me because I wasn't sure I'd stay in the city I started working in, but what happens if you hate your job and want to change to a new company in a new town? Or if you have to switch cities with your job? Or if you decide Rochester is "too close" to home?

My recommendation would be to rent for at least the first year on your own until you figure out what you do/don't like for your home place. Maybe you'll decide you really want a yard or that you hate having neighbors above and below you. Also, home buying/maintaining is very expensive!

**shaggy** · 07-31-2013, 02:56 PM

Do you know what the resale on condos is like in Rochester? I know there are some areas where it's difficult to re-sell a condo; I wouldn't want to be tied to one at a young age.

Personally I would rent for a couple of years and see how I liked the job before tying myself down to a condo, but I'm a commitment-phobe so I might not be the best person to weigh in.

**FrugalSensei** · 07-31-2013, 04:11 PM

I totally agree with those who ask you to think about the flexibility renting offers you and the probability that your life desires will change. If you buy now you will effectively wipe out everything you have saved up until this point. Think about that. The money you have now will never again be accumulated so easily - 20 some odd years of living off of your parents' financial umbilical cord (nothing spent on housing, food, utilities, etc.) while receiving cash for birthdays, holidays and graduations. Then consider that the real estate market moves in what, a 7-year cycle or something like that? If things don't work out as planned then your 20+ years of savings is gone, unless the price of your condo managed to appreciate. If things don't work out you may not be able to wait years for the market to come around to get your money back, let alone see a profit.

As for your job, there have been plenty of examples of late that show one's intentions to stick with a career mean nothing when payrolls need to be slashed. It's not your intentions that matter, it's the company's and the economy's ability to sustain.

I know that the vast majority of people are saying that now is the time to buy because of rates, housing prices, etc. but more than anything I would have to say that your decision has got to be about settling down for a minimum of 10 years and most people in their 20's are simply not ready to make that commitment, even though they think they are.

I say all of this with respect but also experience. I bought a condo in my 20's, fully intending to plant roots for the long term. I ended up losing a ton of cash and so much more, but I would have regretted my life much more had I not walked away from that situation. If I could do it over again I definitely would have rented until I was at least 35.

**snafu** · 08-03-2013, 10:16 PM

Since you're from Rochester with family and friends for support I'm mostly in the 'buy' group IF you talk it over with GF and she is onboard about sharing costs, you have 20% DP to avoid mortgage insurance, get good mortgage rate and have reasonable condo fees. [you need to know their reserve and anticipated problems/replacements] Get an experienced agent to help you with the process. Keep in mind that everything...everything is negotiable, asking price is not necessarily selling price, fees, rates and points are negotiable. Any contract must include a fudge statement like 'subject to passing inspection by a qualified home inspector...'

I wouldn't rule out a house. What can you get for the same money? It's shocking how effective a coat of paint can be and it's certainly a DIY task. Don't predicate purchase on easily changed out ugly colors, old appliances or carpet aka cosmetics.

Buying a condo right after college?