Is it time to buy Condos in Florida?

[rk888]

Lastweek one of my friend bought a condo for 27K in good resdiential area in Tampa with 1110 sft, 3bed and 2bath, which has rental potential of over 900/PM.

So is it time to buy or wait few more months? ..


TIA..

[stup123]

That seems pretty good
If its investment..I am not sure if its good..because it might be sometime before you get somebody to rent it and u need to pay mortgage and HOA fee no matter what along with city/county tax
if its something u can move into and u r sure that u stay in Tampa for 5 years
Same boat..
We are in Fort Lauderdale
county is doing foreclosure auctions online?what needs to be taken care before we bid..any ideas?

[PeterGriffin]

Bear in mind that the biggest recurring expenditure in FL is home insurance and HOA fees. A friend of mind owns a SFH in Tampa and he recently told me that he pays almost half the mortgage EMI amount in Insurance and HOA fees.

[P_Jani]

Economy is pretty down with Mortgage rates as well as the house prices, lowest ever in last 30 years, so looking at it that way, this could be a perfect buying opportunity.

However unlike India, in USA
the running/operating costs such as,
water - sewer - electricity’ s default bills ( even, you used zero) ,
property, school taxes, insurances, heating bills, sewage taxes, grass and snow removal, tree maintenance and trimming, Dehumidifying in basement, cooling charges, association/community fees, …… etc kills you

Especially in FL, - a tornado and hurricane land, the insu, will kill you.

About 1+ yrs ago, I had bought a house and paid it fully, by grace of the god , and still wanna buy a small townhouse, if economy remains like this way, before it’s too late,
but again a bit afraid of above default charges.

As per recent news, they think market will still go bad, and will be more buying opportunities, provided you have wallet strength to sustain the house maintenance costs.

FL is good in the regard that you save a lot in the heating bills, ( India like weather )
but then again those tornados are awaiting you !


Lenders may foreclose on more than 1 million homes this year
http://news.yahoo.com/s/ynewspoint/2...wspoint_ts3125

.....

[venkat786]

P_jani,
can i know the reason why you paid off your loan when the interest rates are low and that too in the risky Florida?

[P_Jani]

P_jani,
can i know the reason why you paid off your loan when the interest rates are low and that too in the risky Florida?

I did not buy in FL.

Had some money on hand for the down payment
and as you know, no one gives any better rate out there,
which can fight at least, the inflation !!
So, paid it off and debt free. :)

I am the kind of a person, can?t afford to give someone any money for free, as an interest.
Our first house, we had paid off in just 4-5 yrs. by working hard and extremely saving.
But, we plugged that drain pretty soon.

To me ,
paying 300 bucks of interest monthly, is a big killer. ( I?d rather, prefer suicide ! )
I have never paid any car mortgage ever in my life in this country, never bought any TV freeze, comuter on monthly intervals ever.
I?d rather hunt for a good used car.

I am the kind of person,
I save a lot and, would not given anyone any unnecessary interest.
Previously I 'd thought, I will withdraw from my Roth IRA / 401K, if some 'tax benefit point of view', something worked out,
but then a project came on hand, made some money,.... and paid the remainder amount !

I just can?t afford, giving some one 200-300 bucks, as free interest monthly. No way !
I rather use those money, for restaurant ( Pizza hut/ Wendy ) every other day
and enjoy the life, giving freedom to myself, from those tedious kitchen work,
and watching the TV and internet the whole day !

In this new house, I alone live here, have installed a portable small solar system, by myself,
So elec. bill just comes to its default minimum. ( below 30 bucks !)
My life-style is different,.... living with scarcity ( conservatively ) ,.... and max. enjoying ( Somewhat like 'Warren Buffet' !)

?????????.

[chand28]

Jani
Very impressive common sense approach that the world followed from the beginning of humanity. Somehow new found wisdom of debt purchases, makes "cash purchase" out of ordinary. just curious..did you think of depositing the amount in FCNR Type accounts and that might have provided little more returns that would have paid off the loan?

[P_Jani]

Jani
Very impressive common sense approach that the world followed from the beginning of humanity. Somehow new found wisdom of debt purchases, makes "cash purchase" out of ordinary. just curious..did you think of depositing the amount in FCNR Type accounts and that might have provided little more returns that would have paid off the loan?

Yaah.

I am kind of an extremely Saver (Conservatively living person ) and have small small CDs, deposits all around in many Indian banks, in FCNR, I- bond, MFs, here and there soem amount seven converted to sibblings/parents to get rid of taxes and since I have never purchased ( except home ) any items like TV, Freeze, Car , house furnaces, Computer or any such,
paying intervals of interests, its not in my blood and it’s not worth, giving nearly 5% rate in the mortgage and getting 3.3 percent from outside.
Plus , house appreciates in value, however those deposits sitting in bank depreciates due too inflation.

In adition to that, if you put a kid to medical college for higher study, and have 200k sitting in the bank,
govt,. is behind you as per your tax forms, ( will trim many many benefits this way, that way ) but if you bought a 450+k of house and showing the Govt., ... " See, my hands are empty,..... now help me,.. for loans and this and that way,... they would never say,.. Hey, you are sitting in that 650K of house, which is fully paid sell it !! ( that's how, these blind rules are , here ! House is considred a prime needs for the living and ONLY the bank balance sitting in yr tax forms bothers them.. )

My thinking sometimes is found weird by many
and like Warren Buffet’s strange thought processess, my thoughts also differ with many !!.

If those running maintenance costs wee not so horrible ( as mentioned in my above post the operating costs of condos ) I would had easily bought 3-4 condos in FL ( paid fully ) by this time at this rate.
I am still willing to do it diehard,.........I just can’t see these opportunities running away from my mind, while looking towards the present economy crisis !!

It’s truly difficult to make decision, in this country
about which way to go,
when it comes to investing.

Inflation eats all the purchasing power and value of those hard earned income sitting in the bank,
and on the other hand the house appreciates, but those maintenance costs and prop. Taxes , scares you like a big killer !

So far, only one Alt. seems to be a good one,
and that is put money towards yr father's name
and buy lands amd houses in India, as they appreciate faster with no terrible propert taxes, heating costs, house insurances, sewage, water and elec bills of default values, grass cutting, snow removal and other weather fighting costs,
also since the houses are not made from the tin and card-boards, less maintenance cost too. !!

Truly confusing, what to do ! L

………………………

[soomdy]

Can you find out from your friend, how did he managed to find this foreclosed property?

TIA

Lastweek one of my friend bought a condo for 27K in good resdiential area in Tampa with 1110 sft, 3bed and 2bath, which has rental potential of over 900/PM.

So is it time to buy or wait few more months? ..


TIA..

[mn_op]

moved to H & B