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bubblewatcher · Guest

I have been reading some of the posts on this website and am tempted to put my question to real estate pundits out there. We have been renting a one floor of a 2 family house in Watertown for 1500/m. gas+electricity +heating oil bill approximately $200/m coin laundry expense $40. We had a really bad experience while renting this apartment. our landlord chose his smooth talking woman friend while renting to us and once we signed the lease she said she had nothing to do with the apartment and we should deal with the actual landlord. We were promised 4 parking spots when there were only 2 so we ended up paying extra parking during winter months. We were promised washer and dryer which was missing. Upon being asked, landlord told my husband "girls these days just don't want to do any work, my grandmother used to all the laundry by hand, ask your wife to do the same." At this we told him we wanted to cancel the lease when he apologized. But , he has pretty much been like this the whole year.

This really prompted me to research on MLS listing, However the market being as it has been , I wary to take the plunge. Does it make more sense to buy a condo/townhouse as compared to small single family in suburbs. Do you own any equity in a townhouse as compared to SFH. There are not too many SFH in my range of 350-360 K in and around Waltham area. I have been following the market and some townhouses have been on market for more than 6 months. And yes we do have to stay in Boston area for at least 4 years and may be more. If I could, I would have really liked to move out of Boston to Chicago or Dallas.

I would like to get opinions of both in favor and against.

Thanks

john p · Joined: 10 Mar 2006 Posts: 1820

Take a few hours and read as many posts on this as you can. Look for topics like buying versus renting...

Most likely you won't remember your landlord's name in 5 years. Don't make a decision based on emotion. It sounds like you don't have much in writing in your favor in your lease agreement. Keep this lesson in mind when you graduate to buying something.

Your financial position will make a big difference in aligning with the right strategy. If you have 5% to put down on a down payment, have about 6 months of cash reserve after that, are in a stable job, and can pay your mortgage, mortgage insurance if necessary (pmi), condo fees if they apply, property insurance and property taxes with under 38% of your household income you will be in the wheelhouse of what you can hit.

The three things to consider are 1: if the house is a beater you need more cash on hand to field the maintenance. 2. If the market is softening you should wait unless you can find a really, really good deal 3. opportunity costs, is it better to put your cash in another financial investment vehicle to make more money

john p · Joined: 10 Mar 2006 Posts: 1820

I forgot closing costs; some people can get killed on them, but do some research find out what they are, how much they cost etc. After down payment, closing costs, any furniture, tools, washer, dryer, etc. try to have 6 months of cash reserve to pay bills.

Same Guest · Guest

You might want to check out www.apartmentratings.com before renting your next apartment. Of course it is going to be biased towards negative reviews since most people who do not have problems will not go to the trouble of grumbling on such sites. But at least it can provide you with some idea of the kinds of problems that may exist, and you can inquire about them before renting. I believe websites like the above are a corollary of the references that a landlord demands before renting the apartment, and may help avoid some of these bait-and-switch tactics by unscrupulous landlords.

Parsec · Guest

We are in a similar situation as you are. We are renting in a multifamily in Newton and would like to stay in this general area (West-NW of Boston near 128) w/a price range of around $350k. We also plan on moving in 4-5 years. As much as I would like to buy a townhouse, it just doesn't make any financial sense on paper. I know what you're going through -- especially if you have kids like I do. It's tearing us apart emotionally moving every year to get away from bad landlords/neighbors but I don't want to see my 20% down payment disappear 5 years from now when we have to sell. For now, we are hoping our next move will get us into a nice, quiet place where we can hopefully rent for several years. FYI, I think you and I would be better off looking for a SFH rental at the end our our leases. SFH landlords tend to keep up w/their investments and you'll have more privacy w/o noisy neighbors. Belmont/Arlington might have a better SFH rental stock than Watertown and Waltham.

john p · Joined: 10 Mar 2006 Posts: 1820

Check out Dedham.

BK- former Owner · Guest

Find a good lawyer who can help you get the landlord to live up to his commitments.

Buying a home will not eliminate problems like bad nieghbors - you can have your life saving tied up in a house and have bad neighbors.

Seek out a Landlord that is a professional - and good business people. Make sure all the terms are outlined in a Contract - Great landlords prefer to rent to great renters.

The idea that buying a house simplifies and insures a quiet life is a mistake.