Looking to blow $150k on a second property (condo)
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Anonymous
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Can I afford it?
$280k hhi $1.3M net worth Existing mortgage 360k 2 kids public - 5 and 7 yo No other debts Put differently, is $500k or so too much mortgage on $280k? |
Anonymous
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Is this a rental or a second home? We have a rental condo, that we lived in prior to house, and I would never advise purchasing one for a rental. If you do, I would go through the past 20 years of condo board materials. Your investment is completely subject to the condo board, and you don't have a lot control. What if they levy an assessment? What if the elevator breaks? What if you don't like the management?
I would buy a small single property here or in Baltimore. |
Anonymous
| Second home. Just a place to unwind on weekends |
Anonymous
Why Baltimore? |
Anonymous
| Yes, you can easily afford it. And you could rent it instead of using it as a second property, if you want more cash later. |
Anonymous
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I'd recommend consulting a financial planner first.
Then a real estate agent who specializes in investment properties. There are a lot of opinions on DCUM, but for a decision that big I'd ask the right professional. |
Anonymous
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How often would you use it, and how much would it cost along with the mortgage? How old are you and when do you want to retire? How are you doing in you other savings? What are the components of your net worth?
If you live in the DC area, I'd be concerned that too much of your portfolio would be invested in DC real estate. Also, if you don't plan to rent this or earn any money off of it, it might not be the greatest place to park money - likely a money loser rather than money maker. |
Anonymous
| Yes, you can afford it.I'd buy in DC and let my kids live in it while in college if necessary. |
Anonymous
| One of our retirement plans has been to have a house at the beach and a downtown condo in DC. You could get an early start, use it as a commuting pied a terre. |
Anonymous
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I'd get it if:
1. Your retirement plans (IRA+401k) are well funded (I'd ballpark that at $500k for you right now) 2. You are on track with saving for kids' colleges (about $100k in the bank now) 3. your non-retirement investments (non-real estate) are about $300k 4. once you buy the property real estate doesn't account for more than 35% of your portfolio 5. you can comfortably make all payments - fees, utilities, insurance, AND make generous contributions to savings and retirement. |
Anonymous
| And the above is based on you retiring at age 60-65, not especially early. |