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- Apr 2, 2007
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Hey all, I wanted to share my experience buying a condo. I'm a bit older (30 y/o) and about to start intern year followed by radiology residency, both in Seattle. I missed out on an opportunity to purchase a condo in the Bay Area just before prices went up 4-fold. It looks like the same situation is happening in Seattle, so I decided to purchase now.
My first takeaway is that there are hidden costs everywhere, and it doesn't make sense to buy a condo if you're just looking to save on rent. You should buy if the market is expected to increase substantially over the next 5+ years. Amazon's zealous growth in Seattle is making the city the second Silicon Valley, and I'm banking somewhat on their continued expansion. My condo is in an area that is quickly becoming gentrified.
Here are a summary of my finances:
Pre-inspection: $300
Condo price: $280,000; 1 bedroom / 1 bath
Closing costs: $7,000
Down-payment: $55,000
Loan: $225,000 @ 4.250% interest rate
Monthly payment: $1,100 (loan payment + interest) + $600 (property taxes + home owner's insurance) + $300 (HOA) = $2,000 per month
In summary, I needed $55,000 + $7,000 = $62,000 to close and took out a mortgage of $280,000. My expected salary is $53K, or $3500 monthly, after taxes. That means over half my salary is going to housing costs. I started the process the day I matched and expect that it will take another three weeks before I'm officially the owner.
My first takeaway is that there are hidden costs everywhere, and it doesn't make sense to buy a condo if you're just looking to save on rent. You should buy if the market is expected to increase substantially over the next 5+ years. Amazon's zealous growth in Seattle is making the city the second Silicon Valley, and I'm banking somewhat on their continued expansion. My condo is in an area that is quickly becoming gentrified.
Here are a summary of my finances:
Pre-inspection: $300
Condo price: $280,000; 1 bedroom / 1 bath
Closing costs: $7,000
Down-payment: $55,000
Loan: $225,000 @ 4.250% interest rate
Monthly payment: $1,100 (loan payment + interest) + $600 (property taxes + home owner's insurance) + $300 (HOA) = $2,000 per month
In summary, I needed $55,000 + $7,000 = $62,000 to close and took out a mortgage of $280,000. My expected salary is $53K, or $3500 monthly, after taxes. That means over half my salary is going to housing costs. I started the process the day I matched and expect that it will take another three weeks before I'm officially the owner.