6 Responses to “Boston Condos – Buy or Rent?” »»

1. CambridgeLandlord
   Comment by CambridgeLandlord | 02/25/09 at 11:37 am

   I wish I was in a position to buy because with numbers like that, being a landlord makes a lot of sense. Unfortunately I can’t get the 50% financing I need.

   As far as the question goes, I don’t think it’s a good time for people that are in it for the short term to buy (is it ever?). The job market is sketchy and property values are being propped up by artificially low interest rates. However if you are in a position to hold onto a property for 20+ years it’s a pretty good investment in my mind.

   Of course there are markets around and in Boston where the equation tilts in favor of the renter.

2. Rob
   Comment by Rob | 02/25/09 at 11:55 am

   I question NAR’s calculation. Regardless of what I think, NAR just release the home affordability index. With the Index at 158.8, NAR said real estate is the most affordable in history, 60% more affordable than 2006, and 15% more affordable than 1993 (prior peak in the index). Index of 100 means the average family can afford the average home. In 2006, the index was at 100. Does that mean home prices was never overpriced? I guess Americans just do not know a good value when it’s staring them in the face.

3. confused
   Comment by confused | 02/25/09 at 2:12 pm

   got any number for taxes and condo fees on the above mentioned properties. The studio would make sense if you really can get that kind of rent.

   I know in my area it still isn’t even close renters are winning hand over fist. The cheapest condo (1 bedroom) when you include condo fees and taxes is over $1100 a month more than renting a larger two bedroom down the road. The apartments include heat and hot water which arent covered in the condo.

   Who knows maybe they save $900 a month in taxes and its all a wash, but I’ll be staying put until that gap is zero.

4. condobuyer
   Comment by condobuyer | 02/25/09 at 5:34 pm

   If I was willing to spend equal amount on rent or mortgage, I would get a better place in the rental amount. The catch is though, that I don’t spend on rent what I would on a mortgage. I would be willing to spend 60-70% more than my rent on mortgage if I got something I liked for the right price.

5. Pam
   Comment by Pam | 02/25/09 at 8:33 pm

   Assuming the condo fees, taxes and insurance would add about $600 a month to the payment in the case of the Cambridge 2-bed, I would go with owning. I am not sure if you would SAVE money but I do think there is a tangible emotional benefit to owning and being able to make improvements or change your place as you see fit. And if you have to live somewhere and you’re not going to be moving any time soon, I would much rather spend my days in my own place that I can paint and put nail holes in the walls as I see fit spending the equivalent number of dollars

6. Ned Lynch
   Comment by Ned Lynch | 02/26/09 at 11:59 am

   Condo fees on Willow are $154 a month and taxes are $1860. If I remember correctly, I am pretty sure it was rented out before it went on market for something similar to what John said (the owner had 2 units as rentals in the building). The rent would be that high for a 180 sq ft studio cause it is so close to Louisburg Sq.

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