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  • Owning an Apartment?

    Is this really a good idea? The girlfriend and I basically have the option of renting an apartment or buying a slightly nicer apartment in the same complex. I'm of the understanding that buying would be a good asset to have since we could rent it out if/when we decide to move.

    Is renting an owned apartment more hassle than it's worth?


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  • #2
    Re: Owning an Apartment?

    renting has always been easy for me, I like the option to not be tied to one place as with owning, just make sure you check all the details first, how long the contract will be, how much you have to pay up front etc.

    Although if you plan to live there for longterm I would suggest buying the apartment but only if you can really afford it, also another one would be who owns the apartment you or your GF, that could be a problem if things ever went bad.

    really if depends on what u can afford and how long you plan to stay. Goodluck with it anyway

    My name: Adept a skilled or proficient person Abyss a deep, immeasurable space, gulf, or cavity
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    • #3
      Re: Owning an Apartment?

      It all depends on the costs. In my opinion I would compare the price of owning the apartment to owning a house, compare the monthly costs of the apartment to a house. Housing is down right now and a house will increase n value over time more than an apartment. Also if the renting aspect is something you want to look at then you can do the same with a house.

      Essentially do your homework compare a possible house within your budget to the apartment you are looking to possibly buy
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      • #4
        Re: Owning an Apartment?

        I rented for a long time before buying a house. I could have bought a condo or apartment a while ago but held off. Something just doesn't feel right about owning a fraction of a building, it still wouldn't feel like I own it for some reason.

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        • #5
          Re: Owning an Apartment?

          Yeah, I never understood buying into a Condo. You still have almost all the same restrictions as renting a "apartment".

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          • #6
            Re: Owning an Apartment?

            This is speaking as someone who currently rents a condo, but has a house in another state that we're renting out:

            If you don't think you'll be there for more than 5 years, I'd rent. You won't start to see the benefits of owning until after that, in terms of building equity. If this would be the first time you've owned, talk to a few banks, make sure you're crystal clear on what "compounding interest" means. Another factor is that, if you need both you and your girlfriends incomes to get a loan on the unit, I would absolutely not do it. If things go downhill in your relationship, that will be difficult to resolve.

            If you are there for the long term, or hell bent on the idea of owning (why?), then go for it. But I will warn you, being a landlord is not easy. My wife and I still own a house in Michigan, and it is a constant struggle. The market is down, so the rent we collect is not covering the mortgage payment. On top of that, there's usually a month or two a year we can count on not having renters, just from turnover and trying to find new tenants. So there's more lost income.

            And finally, tenants are demanding. They will want new storm windows. They will want the toiled unplugged. They will want pest control. They will want things fixed immediately. So you'll need a property manager. Ours takes 10% off the top of the rent for his service. Plus all the costs of repairs and upgrades to the property, which the security deposit seldom covers.

            Speaking of tenants, you will get bad ones. We have had to take one tenant to small claims court to recoup some, but not all, of what they owed when they skipped paying the rent or gas bill for the last three months of their lease.

            We would love to get rid of it, but we're upside down on our mortgage. Not by a lot, but enough to keep us from putting it on the market right now. Unless you know you're in it for the long haul, or you have the disposable income to be making real estate investments, with the above risks I mentioned (and others I didn't), just rent. If you buy, make sure you have a large cushion of savings ($5,000+ depending on the condition of the property) if you do move out and decide to rent it out. We've been fortunate that we make enough money to keep ourselves afloat, despite the losing endeavor. The market could turn around, but even if it did, we won't get rich off of renting it out.
            "No bastard ever won a war by dying for his country.
            He won it by making the other poor dumb bastard die for his country."

            - Attributed to General George Patton, Jr.

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            • #7
              Re: Owning an Apartment?

              Evo just hit the nail on the head. I would heed his advice!
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              • #8
                Re: Owning an Apartment?

                Originally posted by UnDeaD View Post
                Yeah, I never understood buying into a Condo. You still have almost all the same restrictions as renting a "apartment".
                In a large metropolitan area, like Pittsburgh or the DC area, it makes sense. Houses can be prohibitively expensive, and the ones that are affordable are too far outside of the city to be practical. Condos on the other hand are usually a bit more affordable, and require a lot less upkeep by the owner - in exchange for condo fees. But then again, a lot of people end up paying HOA fees in their houses that are comparable to condo fees.
                "No bastard ever won a war by dying for his country.
                He won it by making the other poor dumb bastard die for his country."

                - Attributed to General George Patton, Jr.

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