KraftDinner Posted January 18, 2013 Posted January 18, 2013 I'm not sure what the point of posting this is, but I guess it's partially venting! My bf and I live together. We both own condos from before we met. Money's really tight right now and we're basically JUST covering bills/living expenses and man, it would sure be nice to only have one mortgage/utilities/property taxes to deal with. We live in what is supposedly one of the most expensive real estate markets in the world (well, that's what they say but I have my doubts...needless to say it's expensive). But -- the market has dropped and my condo's value has dropped by $20K in the last year, so it's a terrible time to sell. Ugh. Anyone deal with this? To make things worse, we'd kind of both like to move to this other city with lower cost-of-living and better job market.
Author KraftDinner Posted January 18, 2013 Author Posted January 18, 2013 HOAs restrict leasing? Yep. Ugh! It would be so nice to have a little extra money every month.
Balzac Posted January 18, 2013 Posted January 18, 2013 I'd be researching most current comps as urban rebound is happening right now. It's misery for sure.
carhill Posted January 18, 2013 Posted January 18, 2013 Find a roommate and just be gone most of the time
Author KraftDinner Posted January 18, 2013 Author Posted January 18, 2013 I'd be researching most current comps as urban rebound is happening right now. It's misery for sure. It really is miserable! What's a comp?
Balzac Posted January 18, 2013 Posted January 18, 2013 Comparable properties, listed, sold in a defined geographic area. Roommate is not leasing and yes, easiest remedy.
jwi71 Posted January 18, 2013 Posted January 18, 2013 This is what I would do. 1) how much $$ do you spend on the second condo each month (mortgage, fees, insurance, utils, tax accrual, upkeep and so on). Calculate this number. Let's say it's 2k. 2) how long does a comp stay on the market before it sells? What is your net from the sale? How much will you net? Does it cover the mortgage? If not, how much are you short? 3) if it takes on average 3 months for a comp to sell then you are out 6k (the 3 months of condo expenses) and you are out the 20k in equity and you are out the realtor commission. You are potentially out more $$ if you can't pay your mortgage off from the sale. Let's pretend the realtor gets 4k commission. So you are out 6k+20k+4k for a total of 30k lost in selling the second condo now. Add in more if you can't cover the mortgage. 4) 30k loss is recovered in 15 months of existing condo expenses. (yes I'm fudging a bit as the sales commission wouldn't apt but it be ones overly complicated for what I'm suggesting). 5) knowing that it takes 15 months to recoup the loss and on average 3 months to sell - you must decide if you can recoup 20k in lost equity in under 12 months. If so, wait then sell. If not, sell now as the longer you wait the more unrecovable costs you incur. HTH. Hell, hope I'm coherent! 2
Author KraftDinner Posted January 19, 2013 Author Posted January 19, 2013 This is what I would do. 1) how much $$ do you spend on the second condo each month (mortgage, fees, insurance, utils, tax accrual, upkeep and so on). Calculate this number. Let's say it's 2k. 2) how long does a comp stay on the market before it sells? What is your net from the sale? How much will you net? Does it cover the mortgage? If not, how much are you short? 3) if it takes on average 3 months for a comp to sell then you are out 6k (the 3 months of condo expenses) and you are out the 20k in equity and you are out the realtor commission. You are potentially out more $$ if you can't pay your mortgage off from the sale. Let's pretend the realtor gets 4k commission. So you are out 6k+20k+4k for a total of 30k lost in selling the second condo now. Add in more if you can't cover the mortgage. 4) 30k loss is recovered in 15 months of existing condo expenses. (yes I'm fudging a bit as the sales commission wouldn't apt but it be ones overly complicated for what I'm suggesting). 5) knowing that it takes 15 months to recoup the loss and on average 3 months to sell - you must decide if you can recoup 20k in lost equity in under 12 months. If so, wait then sell. If not, sell now as the longer you wait the more unrecovable costs you incur. HTH. Hell, hope I'm coherent! Thanks! Very nicely laid out, I appreciate that! Lots of good points to consider! Sounds like you've thought this through before!
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