bostonbubble.com

[sc]

You listed a 5.5% mortgage rate. Are you sure about that? This sounds far lower than the going rate. Check with mortgage brokers and see the rate you're likely to get -- I would guess it's more like 6.6 (and perhaps rising).

[Guest]

Hi sc,

I was planning on purchasing all available points, which would've brought the rate down to 5.5%. I included the cost of the points among the transaction costs I listed.

I ended up passing on that condo, because the home inspector turned up a few worrisome issues and it was overpriced to begin with and I was schmoozed by the Realtor selling the place.

I went back to the drawing board and found a basement condo right in Harvard Square for $170,000 that I am now considering. Given that it is renting for $1,100, it turns up a better value equation than the last one. In fact, assuming $50,000 down I would be looking at a monthly outlay around $950. Although that advantage evaporates when you consider the opportunity cost of my down payment, there is certainly an advantage to having a place as close to campus as the dorms and at the same time not having to share my kitchen and bathroom. While perhaps not providing the best possible ROI, this unit certainly suits my needs pretty well.

That's an update on my most recent thoughts.

[Booba]

Would you have bought IT stock in 2001 before the stock crashed?
The trend is obvious: housing prices are going down, so if you buy you can end up with the situation your mortgage balance will be higher than condo value. In best case scenario you will end up loosing a part of your 20% downpayment.
I'd buy something now only if I want to keep it for at least 10 years from now on.

[Guest]