r2i forum

Condos is now days the best option for the stay but still the people are moving towards to buy house.This is the reson that you can get the condos in low cost as compare to the house.

Thanks

Did you checkout the condos by KB homes in fremont?
They are in 295K range. 1800+sq.ft and in a very good school district.

You will save 72 k in rent.
but as an owner , you will pay
1) interest on the 80 % loan ( Tax deductible)
2) Property taxes ( Tax deductible)
3) Home owner's fees. ( I hear this is pretty steep for condos compred to SFH. At some places like Fl, I have seen it ranging upto 600 $s / month)
4) Home owner's insurance.
5) Termite bond and yearly inspection
6) Pest control
7) Utilities go higher in SFH, not sure where you live and how big you rnext home will be. Directly propertional you utility bill will go up.
8) Closing cost at buying
9) Closing cost at selling
10) Windows treatment like curtains etc
11) Wifey will say , bought a house now upgrade it with furniture etc.
12) If SFH, lawn mower expenses / irrigation expenses/ Fertilizer/ weed control expenses.
13) Misc home expenses like plumbing etc.

I believe 4 years is pretty small period to break even out even out of a condo costs unless the properties in CA makes a huge upward movement.....

rdecartus;251558I am playing with an idea of buying a 2 BHK condo in bay area. My budget it $200-250K and I can put 20% down.

I am currently paying to $1500 rent. My R2I plans are in next 4 years. So even if I break even, I would save $70K. Considering that I can also get first time home buyer credit, that way I get some coverage on my closing costs at the time of selling.

I have 6 months of H1 left and my GC is in process (still stuck at labor audit from the last 14 months).

Should I keep renting or buy a condo?

rdecartus;251558I am playing with an idea of buying a 2 BHK condo in bay area. My budget it $200-250K and I can put 20% down.

I am currently paying to $1500 rent. My R2I plans are in next 4 years. So even if I break even, I would save $70K. Considering that I can also get first time home buyer credit, that way I get some coverage on my closing costs at the time of selling.

I have 6 months of H1 left and my GC is in process (still stuck at labor audit from the last 14 months).

Should I keep renting or buy a condo?

Are you getting your loan at overnight repo rates? (which annualized are close to 0.15%)? If not your math is very wrong. Further if you have no clarity on green card why do you want to get stuck?

our.r2i;291758Did you checkout the condos by KB homes in fremont?
They are in 295K range. 1800+sq.ft and in a very good school district.

Fremont KB condos are actually in 400k range for a 1100 sqft. 295k is their cheapest one bedroom condo (without any upgrades or features). 1800 Sqft is their largest 2bedroom with loft condo and is selling for $520k +.

In bay area you will not get even a condo in a half decent school district for $200-250k. And considering the fact that you are stuck in labor, I think you should continue renting.

You will save 72 k in rent. but as an owner , you will pay
1) interest on the 80 % loan ( Tax deductible)
2) Property taxes ( Tax deductible)
3) Home owner's fees. ( I hear this is pretty steep for condos compred to SFH. At some places like Fl, I have seen it ranging upto 600 $s / month)
Even if the association covers hot water, trash disposal, etc, $600 is too high. The community probably has private golf course/ private beach. The association isrun by residents, and they publish balance sheets to residents. This payment is not worthless/without benefits.
4) Home owner's insurance.
For Condo's association takes care of insurance for structure, only need something like renters insurance
5) Termite bond and yearly inspection
Clubbed into closing costs
6) Pest control
For condo's association takes care of it
7) Utilities go higher in SFH, not sure where you live and how big you rnext home will be. Directly propertional you utility bill will go up.
8) Closing cost at buying
Usually sellers take up all the closing costs
9) Closing cost at selling
10) Windows treatment like curtains etc
The aluminum blinds in rentals are dirt cheap.
11) Wifey will say , bought a house now upgrade it with furniture etc.
One can furnish home at will, one could always live with the same furnishings as a rental
12) If SFH, lawn mower expenses / irrigation expenses/ Fertilizer/ weed control expenses.
Assn. takes care of front lawn even in SFH. One could always buy a home with draught resistant landscaping
13) Misc home expenses like plumbing etc.
Youtube makes plumbing and household jobs a breeze
I believe 4 years is pretty small period to break even out even out of a condo costs unless the properties in CA makes a huge upward movement....

OP,
Home interest rates are at a record low. We owned a condo for 8 years(while on H1B), worked out fine for us. At the end of 8th year we were paying less than $400 a month in interest. The rest of the payment went to principal, thereby increasing equity every month. Even if you have to leave the country as a result of H1B expiry, you can list the home, leave the country and sign the docs remotely. That said, I would certainly recommend waiting till you have a GC, for the other reasons covered by other members.