Considering purchasing real estate

[PSI87]

There’s a couple of factors that come into play but I’ve got between 1 and 2 years left of undergrad… I anticipate graduating either summer or fall of 2008. Although it’s nice, once I graduate, I don’t intend on staying in the area. I lived on campus last semester and loved it. Tons of girls, parties, etc; and the residents’ hall is in a great location right in downtown St. Petersburg, FL. If I stay on campus next semester I’ll have a 7th floor appt with a really awesome view. This, however, costs over $2,800 per semester. I was looking at some inexpensive real estate and a 1bed 1 bath condo starts at around 45K, and of coarse it’s not in a desirable part of town. 2 bed room 1 bath houses start at about 60k, of coarse in a high crime area. If I were to get a 2 bed room house I could rent the other one out for 400 or so a month. I could also look into getting a place that needs a little work and look to resell with a profit. There are a lot of houses on the market right now and I have to potential to get a really good deal. If I live on campus or alternatively rent an appt/studio, I’ll never see that money again, but if I get a house it MAY appreciate. I’ve also got to take things into consideration like home owners insurance, property tax, utilities, etc. On a good day in the stock market I’ve got about 70k to play with, about another 13k if I were to Carmax my truck, so this is doable. So what would you do in my situation?

Thanks in advance!

 

[PSI87]

If there are any SVTP realtors in Pinellas County, PM me because I don't have one yet.

 

[YesterdayAgain]

Right now is not the time to speculate in real estate unless you REALLY know what you're doing. It is always a good idea to own vs. rent though, provided you don't find a shithole that will depreciate.

If you have $70k in investments outside of real estate, I would continue investing that money outside of real estate. Take out enough for a downpayment on a mortgage to avoid PMI, but that's it imo.

 

[YesterdayAgain]

Also, if I were in your situation, the first thing I would do is quit being such a lib.

 

[FordSVTFan]

There’s a couple of factors that come into play but I’ve got between 1 and 2 years left of undergrad… I anticipate graduating either summer or fall of 2008. Although it’s nice, once I graduate, I don’t intend on staying in the area. I lived on campus last semester and loved it. Tons of girls, parties, etc; and the residents’ hall is in a great location right in downtown St. Petersburg, FL. If I stay on campus next semester I’ll have a 7th floor appt with a really awesome view. This, however, costs over $2,800 per semester. I was looking at some inexpensive real estate and a 1bed 1 bath condo starts at around 45K, and of coarse it’s not in a desirable part of town. 2 bed room 1 bath houses start at about 60k, of coarse in a high crime area. If I were to get a 2 bed room house I could rent the other one out for 400 or so a month. I could also look into getting a place that needs a little work and look to resell with a profit. There are a lot of houses on the market right now and I have to potential to get a really good deal. If I live on campus or alternatively rent an appt/studio, I’ll never see that money again, but if I get a house it MAY appreciate. I’ve also got to take things into consideration like home owners insurance, property tax, utilities, etc. On a good day in the stock market I’ve got about 70k to play with, about another 13k if I were to Carmax my truck, so this is doable. So what would you do in my situation?

Thanks in advance!

There is no doubt for those prices you are looking in the "ghetto."

 

[PSI87]

Also, if I were in your situation, the first thing I would do is quit being such a lib.

I'm not really a typical lib. I drive a v8 truck (for now.) I go to the gym 3-4 days a week, probably 6 if i live on campus next semester. Though I'd like to be a pacifist, in public basically everyone that causes me the slightest inconvience pisses me off. I visited a rural area recently and while I was there I went with a friend to this guy's house to work on his 383 monte carlo. In his garage he had 9 guns, 12 pairs of deer antlers, a 4 wheeler, deer scent, bear scent, and a cross bow hanging on the wall. While I was there he repeatedly made racist jokes, the entire time having his shirt off. I thought to myself, I wonder which way this guy votes lol. Eventually he said, "You strike me as one of them liberal folks." He went on to confirm my assumption that he was a Republican, but that's the only time I've been told by someone in person they thought I was a lib. He was actually a pretty nice guy minus the racism.

Anyways, thanks for the advice!

There is no doubt for those prices you are looking in the "ghetto."

Of coarse. You're probably familiar with the area, the places I can afford w/o a morgage would be in S. St. Pete. I think I did see a 1 bed room condo in downtown in the 70s, which would be a pretty good deal.

 

[RDJ]

Condo's are not good investments, condo's in the ghetto are worse. The problem with condo's is you only own what is inside the four outside walls of your unit. You will wind up having to pay extra fees if the buildings roof needs replaced, there are usually more rules and reg in a condo association than in a home owners association .... not a good investment at all.

you will not likeley get a profit out of a house purchase either. even if you rent a house .. people who rent in those neighborhoods usually don't take care of your property ... ESPESCIALLY COLLEGE PUKES! it is a losing idea.

if you go to law school you will have much more to worry about. You don't want to throw away rent money yet you will probably lose more in either one of your proposed solutions that you will paying rent.

Is investing in real estate a good idea? absolutely .... is investing in real estated under your scenario a good idea? absolutely not .. IMHO

 

[NorCal5.4]

chit, i'm closing on a condo right now for 350K. 45k is absurd.

I wouldn't expect a whole lot of appreciation in the next couple years. The market is soft but prices haven't been hit too bad at all. We've probably seen the worst from interest rate increases but lending standards will continue to tighten and squeeze out the marginal buyers. Inventories are still in check around 6 - 7 months. Other than that employment and income growth are good enough you probably don't have to worry about the bottom dropping out of the market. But if you're looking at ~2 years of school and then flip and leave town it might be cutting it close.

I'd pay the $2,800, live on campus, and party like a MFer. Worry about the rest later.

With all due respect RDJ I disagree with you. Condos can be very good investments.

 

[PSI87]

Well, everyone seems to think this is a bad idea. If I were a freshmen I'd probably do it but given the amount of time I have left and the responces I'm seeing on here, I think I'll take NorCal5.4's advice and just party like a MFer on campus.

 

[JPD5801]

In his garage he had 9 guns, 12 pairs of deer antlers, a 4 wheeler, deer scent, bear scent, and a cross bow hanging on the wall. While I was there he repeatedly made racist jokes, the entire time having his shirt off. I thought to myself, I wonder which way this guy votes lol. Eventually he said, "You strike me as one of them liberal folks." He went on to confirm my assumption that he was a Republican,

You are right. All gun owning people who hunt are republicans. :bored: Grow up.

Wait until you graduate and have a full time job before you buy real estate. Buy a home to live in before you worry about trying to make money in the RE market.

 

[PSI87]

You are right. All gun owning people who hunt are republicans. :bored: Grow up.

I'm sitting next to a SKS and I'm a dem :banana: