With a 70k salary, should my daughter buy a condo or a house?

[Anonymous]

This makes no sense. There's no way the daughter could afford either of these.

[Anonymous]

Anonymous wrote:This makes no sense. There's no way the daughter could afford either of these.

With the estimated down payment, the monthly mortgage payment would be a stretch, but doable for the condo with the HOA fee. Would def be at the upper limit of what one should spend on housing, but unless she has roommates she’s probably spending close to that in rent anyway.

[Anonymous]

These are not going to be the same quality of housing stock. A $500K house in the same area as a $400K condo is going to be much crappier than the condo. Why else would anyone buy the condo?

[Anonymous]

Anonymous wrote:I own a suburban condo that has not appreciated in 20 years (purchased 2004). Only buy a suburban condo if you very much want to live in it. It is not a good investment.

+ a million

[Anonymous]

Neither on that income.

[Anonymous]

I’d be very concerned about the costs of house maintenance on that salary. When a tree falls it can be 2-4k to remove, new roof, landscaping, exterior painting and repairs for older homes, she limits that risk with a condo.

[Anonymous]

Back in 2003 I paid $250k for my DC row house (in poor shape, TBH, but 3 bed) and 1 bed condos in a building a few doors down sold for $300-450k each.

Twenty years later that house is worth $1.1m (after about 150k in work) and the condos are still worth about $300k. Condos just are not good investments in my experience.

[Anonymous]

If she does either, she will need a roommate or two to pay upkeep and repair expenses.

[Anonymous]

Anonymous wrote:I’d be very concerned about the costs of house maintenance on that salary. When a tree falls it can be 2-4k to remove, new roof, landscaping, exterior painting and repairs for older homes, she limits that risk with a condo.

This this this. Like another poster said, a new HVAC or roof or windows could wipe her out. At least with the condo (presumably newer and in better shape) there are fewer surprises.

[Anonymous]

How old is this condo? New(er) build with contemporary features would be a better risk than buying an older building that will need expensive maintenance and special assessments.

[Anonymous]

Is she planning to live there at least 5 years?

[Anonymous]

Neither. Why would a suburban condo be $400k? Concentrate on building net worth and not through real estate. Not going to happen.
Real estate is not always the way to go. Invest the $150k and have her invest anything extra she is saving by living where she is living now. What's wrong with renting a 1-bedroom?
At some point, the investment you all want to tie up in a home will grow big enough for her to buy a nice place and have money left over.

[Anonymous]

Does she have time to care for a house/yard etc

[Anonymous]

Anonymous wrote:I’d be very concerned about the costs of house maintenance on that salary. When a tree falls it can be 2-4k to remove, new roof, landscaping, exterior painting and repairs for older homes, she limits that risk with a condo.

True, until there is an assessment.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Condos do not appreciate unless she is getting something that needs some serious renovations. However, if she wants to eventually keep it and rent it out, that is a different story.

Mine, in North Bethesda, has gone from $169,000 to $430,000 in just in about 23 years. So, I do not agree that they don’t appreciate.

This.
I don't know what condos people here on DCUM are buying that do not appreciate.
Back in 2012, I bought a condo for 220k in Baltimore so my DD who was going to John Hopkins could stay instead of renting. I sold it last year for 375k. If this is not appreciation, I don't know what it is?