Home Buying in Natick>Question Details

vivaloscelti…, Home Buyer in Natick, MA

Saw an 'affordable housing' condo in Natick below market value and I have to sell it for less than market value. What issues may this cause?

Asked by vivalosceltics, Natick, MA Wed Dec 5, 2012

So a one bedroom condo in Natick is being sold for a lower price than it normally would be, but when I have to sell it, I have to adhere to this same rule. Is it a good idea to get involved in this, what issues may I come across, will it be really difficult to sell when the time comes? Any expert opinions would be much appreciated. Thanks.

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Stephen E. Robb’s answer
There is only one real drawback to purchasing a property being sold as "affordable housing," and that is if the real estate market increases at a rate exponentially to income. What would happen in this case is that you simply will not make as much money as you would if you had purchased a home that could be sold at market rates. Do I see this as an issue in today's economy and the more stringent regulations being put on financing? No. If you have not already purchased, you should really ask yourself what financial position you will be in within the next few years coupled with how long you want to own the condo. These things are important because the reality is that our housing market will not realize huge gains in the next few years which means you will not really lose out on potential gains if your plan is to be in the unit short term. If you want to live there for 10? 20? years, I would suggest consulting with a real estate Broker a Lender and your employer to discuss where you will be and what the market is actually doing. We will be able to lead you in the right direction. Cheers.
0 votes Thank Flag Link Wed Feb 20, 2013
You will benefit by buying the property below market, having lower payments and putting less down. But, you will also be required to past this same benefit on to the next buyer. You will be able to enjoy an increase as the market increases. However, you will not be able to sell at market price. Your purchase price will be set by the Housing Authority. They will set it below market. But, if the market increases, your future sales price also increases. It will be set by their guidelines and be a consistent percentage below market. The way the market is heading, you could get it at a great price and after enjoying it could likely sell at comfortable increase. The problems is if you later try to rent, you will have restrictions. Also, when you do sell you will have to market the property to those who meet "affordable" guidelines first. If no qualified applicants are accepted you will then be able to market it to anyone. Thus, it often takes longer to sell such a property. Likewise, fewer people will be interested in have restrictions placed on their ability to rent and sell at a price they choose.
0 votes Thank Flag Link Tue Mar 12, 2013
Almost every home has drawbacks. Each buyer has to decide where they are willing to give in. For example, some people decide to buy a home on a busy street because they can buy a better home for the same amount of money as a home in that town on a side street. When they sell, they will have to sell for less than the side street home. The same thing hold true in your scenario. My opinion would be to buy the best home in the best location that falls into your budget.
0 votes Thank Flag Link Fri Dec 21, 2012
Sounds like you are considering an affordable housing unit as there are price restrictions in place for resale (?) I would say this in terms of resale, the biggest downside is you will be selling to a smaller pool of buyers so this may mean you should expect the property to take longer to sell. That said, there are plenty of people who want to get into school districts and areas like Natick but can't "afford" a home because of high(er) average prices, so this will be a good thing for you.

Good luckl! Any more feedback needed feel free to reach out ...

Territory.com
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0 votes Thank Flag Link Wed Dec 12, 2012
Vivalosceltics (equipo favorito),

If you need a property I think the first thing to look at is buying it and getting you into the property. If you qualify for specific program, say masshousing for affordable housing, you may have certain restrictions that come with the assistance program (e.g. time length of ownership, sale profit restriction.....). You can find out more by contacting masshousing, or your local town to see what programs they may have for first time home buyers & affordable housing that you may qualify for. It's hard to tell with so little info but It all depends on your specific situation as each one is different. Wen info@wenrealty.com
Web Reference: http://www.wenrealty.com
0 votes Thank Flag Link Thu Dec 6, 2012
I think the downside is that when you eventually sell your profit may be limited. That would be the biggest drawback. On the plus side you get to buy and live in a place that is nicer than other homes in the price range.
0 votes Thank Flag Link Wed Dec 5, 2012
I recently worked with a client who purchased a house after having owned a condo in ashland under this program. It worked out great for her and she had no problems selling it - the affordable housing program has a waiting list and they took care of everything
0 votes Thank Flag Link Wed Dec 5, 2012
Your best bet is to call the Masshousing office. They can explain the whole program to you, and help determine if you are qualified to participate. The idea is to get people into homes they can afford. These usually aren't difficult to resell, sometimes there is even a waiting list.
0 votes Thank Flag Link Wed Dec 5, 2012
If you meet the criteria to buy it, then it can be great. It's yours and when you decide to move, someone else will meet the criteria.
0 votes Thank Flag Link Wed Dec 5, 2012
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