Condo... Buy or Rent?
If a couple working leases this unit, it will cost $1600 per month.
If they buy even with 5% down payment, @ 3% for 30 years, monthly expenses like Mortgage, maintenance fee and taxes are coming around $1670.
Wouldn't it makes sense to buy it instead of renting it?
If a couple stays there for 5 years...the mortgage balance will be 253,000... plus little more appreciation is a bonus...they can get 35,000 after agent fee plus appreciation.
They pay 102,000, get bAck 35,000... assume 3% appreciation per year.. profit will be 45k
Effective price is 102-45-35 = 22,000
Why wouldn't many people do this?
If they pay rent for 5 years it costs 102,000 (avg rent 1700), no money back.