Another condo question?
A newly constructed condo with 3 bedrooms and 2.5 baths, and potential to make an in-law apartment out of the bedroom and family room in the basement, has an asking price of 200k. In this area, this is somewhat cheap and housing prices will almost certainly not drop like they are in the rest of the country. There is a huge housing shortage around here and tens of thousands of more jobs being created within 5 years in a small metro.
I am leaning towards buying that condo or something similar. Between the $160 condo fees, the mill rate of 28, insruance, pmi, and utilities I will have just enough money to buy a happy meal for lunch every day. I plan on renting out the extra rooms. What does everyone think of this? Would I be expectedd to report the income?
Answer:
there is no question that you need to look at your total monthly obligation and see if you can reasonably afford the monthly payments.
what you may not realize is that when you buy a home the interest you pay on the mortgage is tax deductible and if you calculate what your refund would be (which is not difficult to do0 you can increase your monthly dependents on your w-4 so that you have less taxes taken out of your paycheck. sort of like, giving yourself a raise. at the end of the year when you file your taxes you will owe the government no money and they will owe you no money. what most people think is that refunds are good, when all you have done is lend your money to the government interest fee for a year and then you send them a bill better known as a tax return (notice the name) and they send you back your money . and they don't even send you a thank you note.
lastly, you may be able to get a grant for your downpayment check out www.libertygrant.com
good luck
Not a good move. You should buy only if you can afford it without relying on roommates for extra income. There will be months where the room(s) will be vacant simply due to turnover, then what will you do?
GET OUT
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