Definitely check out the condo bylaws; you'll need to be able to rent it out if needed. Paying for 2 mortgages can lead to ruin very quickly.
Also, make sure that anything you do within the unit is allowable under the condo bylaws as well. Anything that touches or changes the exterior of the Unit you cannot alter.
If you'd like any other help, please let me know. Thanks,
PS- Also make sure you aren't too loud doing renovations while people live above/ below you and all next to you as well. Not quite as easy as a SF property...
I like the idea of building equity through updating, so long as you are, uh .... good at it. Some people shouldn't be left alone with a paintbrush if you know what I mean :-)!
If they have the stipulation that it cannot be rented back out that may change the pic a little but I would not bank on it making much money. Long term.... okay, IMHO, short term... not a good choice.
I would rather buy a dumpy house and fix that up but that is just my personal perspective.
Expect to see house prices drop for at least 2 more years. Buying could really hurt you.
The site below shows you a lot about this.
The record downturn in housing prices, however, is still going on in Massachusetts, but homes values aren't falling as rapidly as they were. The inventory of homes and condos has also dropped, showing that markets are on the mend. However, another wave of foreclosures projected to hit in the early part of the year will act to send housing prices lower as bankers slash asking prices to get the surplus inventory sold.
A good starting point for you is to attempt to determine the current fair market value of your candidate property. One way to do this is to hire a licensed home appraiser. You can find licensed real estate appraisers at this state website:
However, this will likely cost you several hundred dollars. As real estate agents we cannot appraise a property for you, but we are allowed to provide you with data and informatio on currently listed and sold properties. By providing a buyer with sale prices of comparable properties that have recently sold a buyer can make a more informed decision on whether the asking price is in line with the current market conditions. Many buyer agents, including myself, will do this for free. If you are currently working with a buyer's agent ask them for a comparative market analysis on the property.
If you are new to buying properties to fix and resell for a profit, I highly encourage you not to rush into it and make any rash decisions on a purchase until you have a detailed plan. Read some real estate investing books, network with other investors, and talk with accountants and finance professional, etc.
A positive thing about your plan is that if you have trouble selling it down the road, you would still be able to live there and get the utility of the property as opposed to having an empty house with no rental income on your hands. I hope that this helps.
- Rich Rosa
Also, as a Haverhill native, I can tell you that location is everything, and even moreso in Haverhill. Where is the unit located? What kind of storage comes with the unit? Parking? So many variables... It may be a good investment, however, we have no way of knowing where property values will be in 2-3 years.
You are welcome to contact me with any questions about this, or other units in the Haverhill area. Take care,
Valerie Cloutier, RealtorÂ®
MA & NH Real Estate Services
Accredited Buyer Representative
e-PRO Certified 2008 & 2009
C: 603-965-5197 (mobile/text)
O: 800-746-8448 x424 Toll Free
Londonderry NH 03053
When you're looking for a mortgage call me @ Salem Five Bank - the lowest rates and the best service - 781-389-8026.
A condo that can't be rented out does inhibit you in the future. Life changes so does the real estate market, it would be nice to retain the right to rent it if need be. Run your numbers and see if it makes sense.... of course there is also no crystal ball about where the real estate market is headed.