Anonymous wrote:Op here, thank you for the responses. We have looked at the numbers and the $400k condo we know she can afford. She will have $150k savings + $50k first time home buyer money (although we are not sure how this part works yet). Plus we the parents can help out if need be. She also wants to have a friend move in and pay her rent so that will help too. So we are thinking the condo is best for now, but I really want her to buy a house if she can find one in an area she likes in good condition, which may be really hard to do on her budget. It would have worked 2 years ago but house prices have really gone up a lot here.

Unless the buyer is someone who has done home repair and maintenance work before, they should not buy a SFH for a first purchase. If she buys a SFH, at those prices, it will be a fixer upper. Who is going to mow the lawn? Rake the leaves? Shovel the sidewalk and driveway? When the old toilets have a problem, who is going to fix them? Has she ever changed a flapper before? If older appliances have a problem, who is going to take care of them? You can try to get a home warranty plan to cover appliances, but they squirm and try to get out of paying for anything and everything including things that are explicitly in the package. The homeowner needs to read the entire package and know what is covered and know how to handle the customer service reps to ensure that they handle covered repairs. If the roof has a leak or issue, does she know how to handle it?

Buying a SFH, especially an older one, has a lot of maintenance and home repair issues that need to be deal with. At that age, most buyers are used to just calling a landlord or property management company for problems. But when you buy a SFH you have to deal with it all yourself and many younger first time buyers are not prepared for all of that. A condo is safer because many things are taken care of by the HOA, like lawn and landscaping work, raking leaves, plowing the parking lot. For many, the plumbing and HVAC are covered by the building HOA and individual owners are only responsible for the plumbing inside their unit, which is much easier to handle.

So, while a SFH may be a better investment, a condo may be a better first purchase for a single first time buyer.

Anonymous wrote:If this was my kid I’d be bending over backward not to give advice in this scenario. She’s old enough to figure out what she wants.

It’s OP’s downpayment for sure, that’s why he’s invested.

Condos are terrible to need to sell so I wouldn’t. I honestly just have her rent a few more years until she actually wants a house.

House and get a roommate or two. Within a few years, the roommates will be covering her entire mortgage. Tax deductions for being a landlord are ridiculous.

I bought a condo in Arlington in 2003 for $119k and sold it 2.5 years later for $265. No improvements.

Anonymous wrote:Op here, thank you for the responses. We have looked at the numbers and the $400k condo we know she can afford. She will have $150k savings + $50k first time home buyer money (although we are not sure how this part works yet). Plus we the parents can help out if need be. She also wants to have a friend move in and pay her rent so that will help too. So we are thinking the condo is best for now, but I really want her to buy a house if she can find one in an area she likes in good condition, which may be really hard to do on her budget. It would have worked 2 years ago but house prices have really gone up a lot here.

Well, I am thinking that your daughter is a grown-ass adult, with a job, and you should let her make her own decision (and not plan on funding some of her housing costs).

I am going to try very hard to raise a daughter who is not so enmeshed with us at this stage in her life.

What is the condo fee? Some are very high. The condo fee could be more than the savings on the SFH mortgage payment. Find out what that fee is and whether there is a cap on how much it can go up. On the other hand the condo fee may be worth it if it’s reasonable and covers repairs in the unit.

I think she should try to buy something less expensive on 70k though.

Will her income go up or is she in a career without lots of income growth? If the latter, I would wait or be willing to buy and have a roommate for the foreseeable future.

I don't understand why an unmarried 27 year old needs a house?? Makes no sense. Invest the money, don't buy a house. Rent allows you to be mobile. She may meet the love of her life and want to move somewhere else, or get a great job opportunity. It sounds like you want her to buy a house, OP. Let her make her own decisions. She shouldn't tie herself down with real estate now. She's too young.

OP, she would be better off if she found a roommate situation, and invested all that money she will waste on a condo into her retirement plan..

Anonymous wrote:Op here, thank you for the responses. We have looked at the numbers and the $400k condo we know she can afford. She will have $150k savings + $50k first time home buyer money (although we are not sure how this part works yet). Plus we the parents can help out if need be. She also wants to have a friend move in and pay her rent so that will help too. So we are thinking the condo is best for now, but I really want her to buy a house if she can find one in an area she likes in good condition, which may be really hard to do on her budget. It would have worked 2 years ago but house prices have really gone up a lot here.

Repeat after me: She will be fine. It is time to stop making decisions for her. She really needs to have her own priorities and ideas. And she needs to experience living on her budget for a while so she can truly understand what she can afford long term.

My condo for most people in building appreciation is meaningless. I say that as we have a lot of old 30 year plus people going out feet first.

Units rent $2,300. Owners pay $350 a month common charges, $35 a month taxes and maybe $50 a month insurance.

They save $1,550 a month over renting.

A properly bought condo the rents rise but your cost is fixed

Anonymous wrote:

Anonymous wrote:Op here, thank you for the responses. We have looked at the numbers and the $400k condo we know she can afford. She will have $150k savings + $50k first time home buyer money (although we are not sure how this part works yet). Plus we the parents can help out if need be. She also wants to have a friend move in and pay her rent so that will help too. So we are thinking the condo is best for now, but I really want her to buy a house if she can find one in an area she likes in good condition, which may be really hard to do on her budget. It would have worked 2 years ago but house prices have really gone up a lot here.

And she may go to grad school across the country or marry someone from God knows where.

She is not in a stable phase of life yet. This is her time to travel and date. Don't tie her down with a yard and mortgage.

Why do you think the OP is tiring her down? Don’t infantilize the DD. Sheesh.

With these interest rates? Neither. Rent or live at home for 2 years.

If this was my kid I’d be bending over backward not to give advice in this scenario. She’s old enough to figure out what she wants.

Anonymous wrote:

Anonymous wrote: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.

Mine has never had an assessment (20+ years). An older complex has a financial track record. A new organization does not. Ask about that when you choose one.

I think many of you do not own condos (like the ones saying they do not appreciate) and are just spouting ignorant comments.

I own one in MoCo, and other than in rare locations, they do appreciate but not much.

I bought my condo in 2014 for $430K and it's now $510K according to Zillow. Per an online inflation calculator, something purchased for $430K in 2014 would need to be worth $558K just to have kept up with inflation. So, no, it hasn't been a great investment, especially when compared to what SFH prices have done. I bought it at a time when I was not ready for tons of maintenance and everything else that goes along with home ownership, so it was still probably the right decision at the time. I can just objectively say it hasn't been a great investment.