Quote:
Originally Posted by Red
1535+100 (tax) +200 (condo fees) = 1835. I don't believe landlords charge condo fees.
You can probably rent a small apartment for a 1000. And you wouldn't have to see your own property lose 40K in 18 months on top of that.
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Why wouldn't a landlord work condo fees into the rent they charge? It makes no sense to pay something that you would charge to a tenant.
But getting back to the original subject, he said he bought before the boom, so let's say he paid $150K. That makes his mortgage $921. Plus tax and condo fees that is $1221. So out of that $987 is going out the window on interest, condo fees, tax. But 18 months ago a condo that would sell today for $250K would have rented for $1500 per month; I've seen rents on units like that closer to $1800. But using the $1500 example, he would have spent an extra $9200 on renting vs owning. So while he "lost" $40K, he really only lost $31K.
My original point still stands; there are more costs to look at besides the final selling price.