I am currently renting a condo from a relative. I really don't want to stay here but I am wondering if I

Asked by Debbie, 60445 Sun Jun 1, 2008

should buy in order to get some equity to use as a down payment on a new place. The unit needs upgrading. It is about 30 years old and still has original kitchen cabinets and appliances and bathroom fixtures. They are willing to sell it to me for about $25000 less than its market price. I don't know if it would be worth the trouble to do any upgrading since I don't plan to stay. Or should I just take a pass on it and look for something else now?

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Linsey Plane…, Agent, Rancho Santa Margarita, CA
Sun Jun 1, 2008
Your best bet is to get an idea of what you could qualify for from a lender first. Then assess what you could purchase in the area you are interested in for that money.

Remember, it doesn't sound like you are buying an equity position here. Even though it's $25,000 below market, if you sold it, you'd likely have closing costs (depending on the price range) they may total a good portion of that $25,000.

Determine what you qualify to buy and compare. Rarely do you get the upgrades back dollar for dollar. If you do decide to buy and upgrade the property, make sure you research what types of upgrades create the best return.

Buying a home that you intend to live in is not just about the investment side of things - it's your home. Buy something you are excited about living in.
Web Reference:  http://ocrealestatevoice.com
1 vote
Cheng, , 08817
Fri Nov 14, 2008
It is very easy and affordable to turn kitchen cabinets into morden and shine by just "refacing" it...

Also, new appliances these days are so DIRT cheap! no wonder GE do not want to do that any more...

Also, new material for bathroom is quick, one day job to have a brand new bath tub, shower, ...etc they do not need to be removed, the new face just be added on top of it and regroud; it is amazing!

Who knows, may be after doing all these, you will decide to stay, home sweat home ...
0 votes
Greg Zaccagni, , Illinois
Mon Jun 2, 2008
Linsey:

I happen to like your answer and can't see why you received thumbs down? I think those who vote on our answers should be required to supply a reason and perhaps be registed and identified - do you agree?

Debbie appears to be describing flipping which is a risky business in this climate. By pre-qualifying herself she can know how much she can afford and then determine whether she can afford more than what is being offered. If it looks favorable she can use a lender to obtain a pre-appoval for a specific loan amount and use it as leverage to negotiate when she finds the home she would rather own.

Debbie: I have a free online prequal calculator on my website.

Pre-Qualifed vs. Pre-Approval whats the difference?
Web Reference:  http://www.GregZaccagni.com
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