Re: Pros and cons of owning Condo\'s
Your current housing expenses are $460 a month, but you want to increase them dramatically so you can buy in at what may be the top of a housing bubble?
You should compare your costs of owning vs. renting, if renting is much cheaper you should rent (cheap rents are also a sign that house prices are overvalued). Include all your costs, including insurance, HOA, and something for maintenance. Factor in your tax benefit. If you are factoring in renting out a room, assume it's vacant 10% of the time. On the renting side, factor in the interest you'll earn from investing your 25k.
If it's close, then the house wins because of the potential for appreciation.
Your other problem is that condo is usually just a fancy name for an apartment. When condos appreciate, owners of apartment buildings rush to "condo-ize" and cash in. So condos typically won't appreciate like houses. I used to own a fancy condo downtown on the river in PDX. After I bought, the market was flooded with condos, and another part of town became much more "trendy". Five years and no gain.
All in all, this market isn't one I'd rush to get in on. If the math is close I'd say you aren't missing out on anything. Next year you'll probably be able to afford something better, and prices may even have come down.
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