<p>In Berkeley, avg apartment would be $1500 a month, which would total to around $72000 for 4 years. Would it be better if I just got a loan for a condo? It just pains me to think that I’ll be paying $72000 to have a place to sleep & cook. If I got a condo, I would at least have it belong to me… I don’t really get the whole mortage, taxes, etc deal, so overall, what would be better financially, renting or buying?</p>
<p>Next year I’m getting my own apartment, I want to know what people have to say also, downtown Chicago also going to be very expensive.</p>
<p>It’s going to be tough to get a loan to buy an apartment if you’re just a college student and don’t have a full-time job.</p>
<p>Personally, I think it depends if you plan on staying in Berkeley after college. A condo is good if you’re planning on staying long term, since you’re paying towards a mortgage, not rent. On the other hand, you would be able to sell the condo when you’re done with it, but who knows how the economy will look then?</p>
<p>I thought about that as well.</p>
<p>I like the idea of the apartment because it is temporary. If I hate my neighbors (…which I do. A lot. It always sounds like he’s violating a chicken in there.) I have the option of packing up and moving out within a few weeks.</p>
<p>Versus if I own it, it’ll take a bit more to go.</p>
<p>However, a condo is probably a much wiser investment. I would say it depends on how much you can afford and if you can handle the loan payments.</p>
<p>Weigh the pros and cons.</p>
<p>So… if I am super broke, I shouldn’t get a condo? I do plan on living in Berkeley and the Bay Area for, oh, I don’t know, the rest of my life :P.</p>
<p>If you’re super broke you are not going to find anyone to lend to you. Your best bet is to find something where someone is looking to have their payments taken over. But that is something you have to be careful about and do it right. Otherwise you could end up out a lot of money and facing a three day notice.</p>
<p>Investing in assets are always a better way to spend your money because you are pouring money into equity that you can eventually get back once you are opting to sell your property. Renting is pure loss because you’ll never get the money you invested into the property as well as the rent per month that you have spent.</p>
<p>This is why I’m buying a house. It’s hard for me to be approved for a loan because I am only 21 and my credit is not phenomenal (I don’t have bad credit but I also don’t have much of it). Banks will rarely give you a loan for the full mortgage price unless you have a sufficent down payment on the condo. Since you’ll be living in the city, I’m sure the condos there are going to be roughly $200k+ for something decent (considering the cost of apartments in that area). A decent down payment will be roughly 20% or more of the actual cost. The more money you put down the more your properly is essentially worth. Never ever get into a loan without a down payment. Since you’re a first time buyer and because I’m assuming you’re under 25, you’re going to end up placing a hefty down payment on your home before you’ll even be evaluated for a loan. It was hard for me at 20 to get an auto loan due to my age even with my down payment being more the the amount of the loan.</p>
<p>You also have to realize that the property price may fluctuate which means that you may be losing money over time paying off your mortgage. Right now it’s ideal to purchase since the market is so low. Once you are locked into the price, it can become more valuable over time thus increasing your profit margin when you choose to sell. Though be careful of APR rates because if you are not in a fixed, they may change from the 4.5% that you signed up for to a 9.5% making your payments double from originated (which is why so many people are losing their homes).</p>
<p>Can you afford $1,500-$3,500 in mortgage payments per month? With the addition of ALL utilities and fixing problems that come up? If the answer is yes and you feel that you can sustain this rate until you decide to sell then I’d go with buying. If you’re questioning your ability to meet these requirements then housing is definitely not a good option.</p>
<p>What’s nice is if you choose not to sell the property and wish to relocate, you can always look for someone to rent so that you can keep up with your mortgage payments.</p>
<p>If you’re serious about it, contact a realtor and find our your options.</p>
<p>I don’t think you have fully considered the consequences (or realistic feasibility) of buying a condo.</p>
<p>^agree. i was thinking of buying one too, but i can’t even imagine how long it will take me to pay it off. plus i didn’t want to stay here forever. can’t you get housemates/roommates if you live in an apartment? and it would be cheaper? are you getting any help from your parents? if not, i don’t think you’d want to deal with mortgage headaches on your own. i don’t really know how it works, but can’t you put down like 3% down payment (which is a fairly reasonable price), but the mortgage would take longer to pay off? in the long run, of course it’s better… but you don’t want to make a mistake now that will affect you in the long run either… well, i don’t know. talk to your parents.</p>