The Condo and New Car Comparison
The economic climate has created a number of previously unseen, and in some cases unthinkable, scenarios within the housing market. While many industry professionals are still trying to hang on to any shred of hope and liquidity and income, there are some regions throughout the country that have been rattled so deep into their core that the average homebuyer has to do a double-take just to be sure they are reading the headlines right.
One of those things is that there are opportunities out there in some cities and suburban areas in which it is possible to buy a condominium unit for less than the cost of an average family car. Let us repeat that one more time for anyone that wasn’t quite paying enough attention. In specific areas of the country, you can buy a condo for less than what a brand new family car might cost.
Times we thought we would never see
Remember, it was only three years ago when house flipping and tapping into home equity was all the rage for millions of homeowners. Easy to obtain mortgages were becoming so commonplace, and ridiculous, that many of those who have survived the economic fallout from it continue to shake their heads and ask, ‘What were they thinking,’ or –truth be told- ‘What was I thinking?’ Just a few years ago, if someone was looking at purchasing their first home in the form of a condo, they would consider anything less than one hundred thousand dollars a steal. Now there are reports of condos –and yes, some homes, though they would need a considerable amount of repair- that are selling for as little as twenty-five grand.
That’s not a misprint. $ 25,000. Twenty-five grand. Even less than that! In truth, there are some condos that are selling for less than what a Toyota Corolla sells for. So now is the time for the inevitable question that is circling around your mind. Where are these master deals?
Must be in the worst parts of cities, right?
The knee-jerk reaction would be to assume that these condo units would be in run-down shacks in crime-ridden neighborhoods where no one really wants to live, anyway, correct? Of course, anyone could believe in that scenario.
But the truth is that these condos are often found in excellent condition, in move-in shape, in nice neighborhoods in quality cities. Sacramento, California, Las Vegas, and Miami are just three cities where condo prices have fallen so significantly that it makes passing up the opportunity to own one almost too great to resist.
This is no sales pitch
Okay, okay, this is sounding a lot like some slick sales pitch, but rest assured that it is not. No one is advocating that people should pack up and move across the country to a city they’ve never even visited just to get a great bargain on a nice condominium. What this article is suggesting, however, is that for those potential homeowners who have been sitting on the sidelines for years because the prices were simply out of reach can breathe a sigh of relief and get their noses back into the books, their feet back into the game, and be able to find something well within their budget.
Now, there will be those people who talk incessantly about wanting their own home, not a condo, to which any rational thinking person would have to say, ‘Isn’t it better to get invested in a less expensive condo now, putting money into a mortgage rather than rent, than to wait another five years to buy a home?’
The answer may seem obvious to those on the inside, but it continues to apparently baffle far too many would-be homeowners.
David is the Founder and CEO of LoanOfficerSchool.com, an approved education provider for The Conference of State Bank Supervisors and The National Mortgage Licensing Systems’ (NMLS) required pre-licensing education and continuing education.
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