abqdan: (Default)
[personal profile] abqdan
You may already have followed the dramas we've had with trying to buy a condo in Palm Springs. It may be that we should just take a rest at this point and do nothing. But we have one last opportunity to buy right now. Here's the salient points:


  • The market is improving, so now would be a good time to buy (a year ago would have been better, admittedly)

  • I am mostly retired, so I could make use of the property when I want; Bill has the flexibility with his job for us both to go stay there for a week or two each year.

  • Renting during 'the season' would cover part of the annual costs for the next three years; after which Bill would be retired and we'd use the condo to 'over-winter' in California.

  • We've found a condo we both REALLY like


  • The owner of the condo we like wants to sell for $10,000 over currently appraised value - no negotiation will be accepted

  • The same owner wants us to let her daughter stay there for three months after escrow closes (which isn't a huge issue, since we wouldn't need it particularly in that period).

  • No matter how I work the figures, taking into account what we'd make on our deposit if it stays in other investments, the costs associated with running/maintaining a condo, and potential increase in equity over time, I can't make this look like a good investment on paper.

So here's the problem; I have an emotional reaction that we should agree to the terms of the seller, just because I really like the complex, and the unit. But in pure business terms, we come out a little worse off after 5 or 6 years owning the condo, than if we just did nothing.

One big issue with 'what-if' modeling is that there is very little on which to base a prediction of how well our other investments might grow, or how fast the CA property market might rise in the next five years; so a lot of this is guesswork.

The difference between our last offer and full asking price is just 2.57%; though in reality, the price they want is about 5.7% higher than a fair market value for the property. So we'd effectively be starting out with a 5.7% loss...

Bill and I will have to sit down and talk this through tonight - do we go with a good solid investment decision, or an emotional decision (plus the 'joy' and benefits of ownership of the property long-term).
Anonymous( )Anonymous This account has disabled anonymous posting.
OpenID( )OpenID You can comment on this post while signed in with an account from many other sites, once you have confirmed your email address. Sign in using OpenID.
Account name:
If you don't have an account you can create one now.
HTML doesn't work in the subject.


Notice: This account is set to log the IP addresses of everyone who comments.
Links will be displayed as unclickable URLs to help prevent spam.


abqdan: (Default)

March 2014

91011121314 15

Most Popular Tags

  • ! - 1 use
  • i - 1 use
  • n - 1 use

Style Credit

Expand Cut Tags

No cut tags
Page generated Sep. 24th, 2017 03:52 pm
Powered by Dreamwidth Studios