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I used to live in western PA back in 90's. Friendly people, nice universities, but the weather sucks big time. It generally was relatively cheap area to live and maybe still is now though, I can't believe a condo in Pitts is selling less than 100K.
But if I were in your shoes, I'd be rather concerning more about student loans and other debts than buying a cheap condo. You're starting your professional life with 180K debt. Think about it. My wife and I started with less debt than that, and it put us in a shithole for years to pay them off. You definitely will need another loan in few years and you may want to go other cities after you done with your residency there. What would you do w/ that condo in Pitts when that happens?
700/mo rent sounds reasonable to me, but 500/mo HOA? in western PA?
Of course, I wouldn't mind you buying a 100K condo or 500K SFH by the river when you don't have to worry about 180K debt already have or you're from a wealthy family that surely will wipe your debt in a blink. Otherwise, I'd say keep looking for another rent that is close to your hospital. Keep your self moving ready, and keep saving for a while.
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Hello I was hoping I could get some advice on whether or not to buy. I was also wondering if someone could make some semblance of why these condo prices are all over the place. I'm glad I found this site because after reading the main article, and lurking these forums for a few months, I have a feeling I would have made a big mistake if I didn't...
Some background: I am currently training in my medical residency for the next 5-6 years here so I will be in Pittsburgh for this time period at least, barring some horrible event. Single. About 130k in student loan debt, paying off slowly, (depends on the loans, about 80k is fixed at 4.5%, another 10k at 2%, rest at 6.8% though). Avg salary ~48k currently but it scales up mildly with each year. Not sure if I will end up staying in Pittsburgh.
Most of my colleagues have bought condos or single family homes if they have a family. A lot are urging me to do the same to "build equity." EVERYONE seems to be saying I'm throwing away my money now renting. Currently I am renting a small house with 2 roommates, ~700/month (depends on utilities). Location is decent, but it takes me about 15-20 minutes to get to most of the hospital sites I work at. Street parking.
One building I had an eye on, and a few of my colleagues currently live there is the one listed below. However I am VERY confused by the prices, as they are ALL over the place. The downside of this building is the condo fees are QUITE high, mid 500s a month! Allegheny county also has high property taxes (I'm not sure the exact % but everyone complains about it...) The upside is that it is very close to the main hospital, walking distance really, and includes an indoor parking garage (I currently have street parking and winters are a pain) so the location is much better. It's also within walking distance to a lot of restaurants. Where I live now, it's pretty much all residentials and I have to drive everywhere.
I included links below:
3br, 2.5ba, 1,762 sq ft : $329,500 : http://www.zillow.com/homedetails/128-N-Craig-St-APT-316-Pittsburgh-PA-15213/11528837_zpid/
3br, 2ba, 1,680 sq ft: $125,000 (recently sold - looks like the buyer got an incredible deal!): http://www.zillow.com/homedetails/128-N-Craig-St-APT-604-Pittsburgh-PA-15213/11528875_zpid/
2br, 2ba, 1,382 sq ft: $110,000: http://www.zillow.com/homedetails/128-N-Craig-St-APT-917-Pittsburgh-PA-15213/11528935_zpid/
2br, 2ba, 1,267 sq ft: $119,900: http://www.zillow.com/homedetails/128-N-Craig-St-APT-401-Pittsburgh-PA-15213/11528839_zpid/
2br, 2ba, 1,336 sq ft: $99,000: http://www.zillow.com/homedetails/128-N-Craig-St-APT-706-Pittsburgh-PA-15213/11528893_zpid/
1br, 2ba, 1,342 sq ft: $75,000: http://www.zillow.com/homedetails/128-N-Craig-St-APT-614-Pittsburgh-PA-15213/11528884_zpid/
1br, 1ba, 1,013 sq ft: $79,900: http://www.zillow.com/homedetails/128-N-Craig-St-APT-506-Pittsburgh-PA-15213/11528861_zpid/
1br, 1ba, 1,090 sq ft: $75,500: http://www.zillow.com/homedetails/128-N-Craig-St-APT-709-Pittsburgh-PA-15213/11528896_zpid/
1br, 1ba, 1,090 sq ft: $109,900: http://www.zillow.com/homedetails/128-N-Craig-St-APT-710-Pittsburgh-PA-15213/11528897_zpid/
As you can see, the pricing is WILDLY different on some of these units, which are identical or near-identical. They're all in the same building, and similiar floor plans.
Some caveats:
1) I'm concerned that if I do end up buying, my monthly cash flow may be inadequate. I may have to defer my student loans, which will continue to acrue interest on top. In addition I'll have a mortgage...and the HOA fees seem too high for me.
2) My parents are offering a 20% down payment to help me out. In fact they urged me to buy back when I started medical school and are wondering why I STILL haven't bought... They're pushing this as well.
3) If I buy a larger place, I will have to find roommates. Although this may offset the mortgage (and maybe even be profitable since this building is at a prime location, right btw the UPitt and CMU college campuses), I'm not sure if I want to deal with all the hassle of looking constantly for one.
I punched in the numbers at:
http://michaelbluejay.com/house/rentvsbuy.html
And even with a purchase price of 75,000, 20% down, 5% appreciation (which I highly doubt...), it STILL says buying won't be better than renting till Year 6.
So I guess my main questions are:
1) Am I right to ignore my family, friends, and colleague's advices to buy now?
Usually when the topic comes up with anyone, I'm made to feel sort of foolish to not buy...
2) Why are all the condo prices so different? A lot of the similiarly configured units have big price differences...
Thanks. I will appreciate any input.
#housing