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carlos45
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Good Morning, All:

 

I'd like your opinion on something: I turn 50 later this year, I've been single for most of my adult life and don't seem to have any prospects for a relationship, and I live alone. My question is should I consider buying a condo or small home, at this stage in my life??

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1. To quote the Pet Shop Boys, Love Comes Quickly. Just because you don't have any prospects for a relationship today doesn't mean there won't be one around the corner.

 

2. Yes, buy a condo or a small home or whatever you can afford. Do this regardless of your relationship status.

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No easy answer. Do your homework. You may find that you don't enjoy owning a home if you've been depending on apartment managers or landlords for your whole life. As a busy single man I've never liked dealing with some of the maintenance issues of my house. A condo might be a good choice if it is well-managed and well-maintained. In most places building equity in a home or condo is a good investment. There are always some bad real estate investments though.

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I'm not sure what being in a relationship has to do with owning real estate. I tend to look at real estate on purely a financial level. Does it make sense financially? For me, there is very little emotion involved when purchasing OR selling. That being said, owning vs. renting is a complicated question, and the answer will be different for everyone. Not knowing anything about you, your situation, your life, your plans for the future, it is impossible to say whether or not you should buy property. As a general rule, yes owning is more advantageous for most people. 50 is not old by any means, and property purchased now could generate substantial equity in the next 20 to 30 years, and could possibly provide a secure nest egg for your retirement years, but as N2T mentions, owning real estate can also be full of pit falls, and in a "worse case scenario" could spell financial disaster for someone. That's a reality.

 

Owning property will most likely be the largest purchase you will ever make in your entire life. It is something that should be thoroughly discussed with a professional estate planner. I would encourage you to do so. Depending on your specific situation, he can discuss the advantages and disadvantages with you.

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Sound financial planning is needed, but in general owning is better than renting.

When i opened my business, I rented rather than buying property. Twienty years later, i had paid more than a million dollars in rent and i had nothing to show for it. I received no particular tax benefits for renting. I would have received many for owning. Over the years, my rent more than doubled. If I had purchased, my mortgage payment would never had increased so dramatically.

On the other hand, i did not have to worry about maintenance and i could easily leave at any time with minimal notice.

 

So even at 50, buying a place of your own which is well within your means, in a place which is desirable enough that you could sell easily should you want to leave, is a great idea.

 

Remember the three rules of real estate: 1 Location 2 Location 3 Location

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I'm not sure what being in a relationship has to do with owning real estate. I tend to look at real estate on purely a financial level. Does it make sense financially? For me, there is very little emotion involved when purchasing OR selling. That being said, owning vs. renting is a complicated question, and the answer will be different for everyone. Not knowing anything about you, your situation, your life, your plans for the future, it is impossible to say whether or not you should buy property. As a general rule, yes owning is more advantageous for most people. 50 is not old by any means, and property purchased now could generate substantial equity in the next 20 to 30 years, and could possibly provide a secure nest egg for your retirement years, but as N2T mentions, owning real estate can also be full of pit falls, and in a "worse case scenario" could spell financial disaster for someone. That's a reality.

 

Owning property will most likely be the largest purchase you will ever make in your entire life. It is something that should be thoroughly discussed with a professional estate planner. I would encourage you to do so. Depending on your specific situation, he can discuss the advantages and disadvantages with you.

 

+1

 

Also this link may help http://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html?_r=0&abt=0002&abg=1

 

I used to be a big "buy" fan, but now I'm not so sure. After I sell my current home, I am likely going to rent for a good while. This gives me the flexibility to move around (including trying different cities, states, areas). If I did find the place I was 100% sure I wanted to stay, it was a buyers market, interest rates were still low-- then and only then I might buy again.

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If in the end you decide to buy and your choice is between a small individual home and a condo – buy a home. Now if you decide, for whatever reason, to buy a condo check VERY carefully your state’s laws regarding condo management. I live in Southern California and bought my condo 29 years ago. In California condo management is governed primarily by The “Davis Stirling Common Interest Development Act”. This act is a ninety plus page document governing virtually every aspects of condo life. During the years of my condo ownership I have been extremely active on my board of directors and am currently chairman. Over those years the California legislature has burdened condo owners with one ridiculous restriction after another. Probably a third to a half of our member’s monthly assessments is spent on complying with California laws. Additionally resident condo owners in California are rapidly becoming an endangered species. Speculators are buying condo in great numbers and turning them into rental properties. California law does not allow condo boards to regulate the number of rentals allowed in a complex – some state, however, do.

 

In California, at least, I wouldn't recommend to my worst enemy that he/she buy a condo!!!!!

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I would need much more context than just your age and relationship status to begin to answer this question. It would depend on where you live, how you live, your past history, your financial situation, employment, interests, plans for the future, etc., etc. The suggestion to sit down with a financial or estate planner makes sense.

 

I have lived alone and with partners, in rental apartments, a co-op apartment, and houses I/we have owned, for more than fifty years. Every situation involved different considerations.

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Def a condo, the association does all the upkeep for you.

 

Wait until you get handed a cc&r that dictates what color/make/model of car you can have, the times guests can come over and the times guests must leave, the age limits of guests, what color you can paint the exterior, shades of white, egg white, and taupe. the exact number of bushes and trees you can have in the backyard, the front yard cant be touched.. etc etc..

some associations are just draconian.

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Lots of people -- men, women, gay and straight -- make the mistake of deferring their wishes and life's big adventures and decisions until they've found "their mate". Don't do that! Make the decision to buy a home for yourself. As posters have already stated, there's a lot of factors to consider when deciding to buy or rent, but whether or not you have a spouse should not be one of them.

 

Regarding a condo versus a house, I've owned both and for me, at this point in my life, a condo better suits my lifestyle. But a few years ago when I was into remodeling, gardening and lawn care, the house was a better choice.

 

Whatever you do, do your research first... But do it for you!

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I would need much more context than just your age and relationship status to begin to answer this question. It would depend on where you live, how you live, your past history, your financial situation, employment, interests, plans for the future, etc., etc. The suggestion to sit down with a financial or estate planner makes sense.

 

This.

 

For some, it actually does make sense to be a renter. I was for many years. I'm currently a homeowner and it has been a good thing, but it came about at the right time for me.

 

Get your advice from a certified financial planner. Not from the internets.

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I bought my first condo when I was 35 and stayed there for 5 years. When I decided it was time to move, I looked at renting and the bottom line was location and what I wanted. I didn't need a pool and wanted to park in the same spot every night. Those little things made ownership (and another condo) an easy decision.

 

So it is not only an investment decision (but probably a big part of it) but also a lifestyle thing.

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I'm not sure what being in a relationship has to do with owning real estate. I tend to look at real estate on purely a financial level. Does it make sense financially? For me, there is very little emotion involved when purchasing OR selling. That being said, owning vs. renting is a complicated question, and the answer will be different for everyone. Not knowing anything about you, your situation, your life, your plans for the future, it is impossible to say whether or not you should buy property. As a general rule, yes owning is more advantageous for most people. 50 is not old by any means, and property purchased now could generate substantial equity in the next 20 to 30 years, and could possibly provide a secure nest egg for your retirement years, but as N2T mentions, owning real estate can also be full of pit falls, and in a "worse case scenario" could spell financial disaster for someone. That's a reality.

 

Owning property will most likely be the largest purchase you will ever make in your entire life. It is something that should be thoroughly discussed with a professional estate planner. I would encourage you to do so. Depending on your specific situation, he can discuss the advantages and disadvantages with you.

 

Excellent answer.

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+1

 

Also this link may help http://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html?_r=0&abt=0002&abg=1

 

I used to be a big "buy" fan, but now I'm not so sure. After I sell my current home, I am likely going to rent for a good while. This gives me the flexibility to move around (including trying different cities, states, areas). If I did find the place I was 100% sure I wanted to stay, it was a buyers market, interest rates were still low-- then and only then I might buy again.

 

Very much my situation. I bought my first place at 23. I sold my second place last year. Now I'm renting. I'd rather own, but I need the flexibility, and I learned the hard way that real estate can be a real albatross.

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It REALLY does depend on WHERE you are. Here in NYC the rents are going thru the roof because ppl who would have bought if they were still handing out Mortgages like fliers are now forced to rent due to the mortgage crunch. AND even my friends who are lucky enough to be planted in cement in rent stabilized apts they've had forever and will never give up are facing the ax because stabilization has caps. I've been telling them for years to save up and buy. Some have a 2K cap. So even if you've been there 30 years like some of my buds, that cheap rent for your giant apt will EVENTUALLY creep up there in albiet tiny incriments. So if it's up tp 1950$ a month and the next increase is 51$ then it doesn't go to 2001$ it goes to 4800 or 5500$ a mo whatever the market rent value is. And they must move. Out of Manhattan usually because that 2000$ a month BARELY gets you a one room studio here and if it gets you a 1br it's in a walk up in a shitty area with windows that face brick walls) Years ago I bought the SMALLEST apt I could afford on the best Park block of the best hood and had I NOT done that I'd be in NJ somewhere because I could NEVER swing the rents here today.

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