My Condo Dilemma

[White 6]

Take the money and run, dude. What did you pay for your condo and they want to pay 20% more over current market price for it?

Without disclosing pricing, the problem was I purchased in 2004. Which means prices were high. Then the market crashed in 2008, as we all know, and it took a decade for prices to recover.

Take the money and go for a small house with nobody on the other side of the wall.

ehhhh... don't know if that would be an option. Owning a house - even a small one - would include mowing lawns, raking leaves, shoveling snow, etc. I had to do that when I had the two flat that I rented half of in the 1990's, I'm not sure I'd want to do that again.

If I move, it'd be to another condo.

If you vote against sale and lose cant you still take the money

Point taken.. but what if I win, that's the thing? The other issue, the one the town is planning to do with a local property, is what concerns me. My opinion, it will knock the value right out of the pricing for the area.

Thanks all for your thoughts.

Can you find another place for the same amount? Shop around.

I'd talk the other owners in to asking for 30% more than market value, before even considering it....inflation is coming at us, big time....

You always try to get the best deal you can without blowing the deal, but another $6,000 and the time it takes to get it, may not be worth it in the long run. as $6,000 won't even get you a decent used car. To me, inflation coming means get set and do any borrowing on low interest fixed terms while money is cheap, so you do not have to face covering a need more expensively when the price of money is high. Worked for me, anyway.

 

[JoeB131]

I don't understand the rezoning comment. What is being rezoned?

Also, why would someone pay 20% above market to convert to a rental?

Probably because they know they can get more money renting the units than they are buying them for.

My mortgage payment (not counting taxes) is about 600 a month. (My total costs come to $1000.00 a month with association fees and taxes) . Units in this area are renting for $1500 a month. People who managed to scoop up units in 2008 when the market was shit are probably paying a lot less.

Also, as I've said, the association manager wants the fuck out. She's really the one instigating this thing.

 

[Erinwltr]

I don't understand the rezoning comment. What is being rezoned?

Also, why would someone pay 20% above market to convert to a rental?

Probably because they know they can get more money renting the units than they are buying them for.

My mortgage payment (not counting taxes) is about 600 a month. (My total costs come to $1000.00 a month with association fees and taxes) . Units in this area are renting for $1500 a month. People who managed to scoop up units in 2008 when the market was shit are probably paying a lot less.

Also, as I've said, the association manager wants the fuck out. She's really the one instigating this thing.

Joe, screw the stress, take the money and move.

 

[CrusaderFrank]

I don't understand the rezoning comment. What is being rezoned?

Also, why would someone pay 20% above market to convert to a rental?

Probably because they know they can get more money renting the units than they are buying them for.

My mortgage payment (not counting taxes) is about 600 a month. (My total costs come to $1000.00 a month with association fees and taxes) . Units in this area are renting for $1500 a month. People who managed to scoop up units in 2008 when the market was shit are probably paying a lot less.

Also, as I've said, the association manager wants the fuck out. She's really the one instigating this thing.

If I were the buyer, I'd pick up as many of the units at par without paying the premium and rent those out. It sounds like, for some reason, the overall returns would be higher to the buyer why owning the property outright. Maybe they can build more or something - I don't know enough of the particulars, but yeah, I go with the others and selling might be a good result.

Moving is stressful, but it gives you a chance to reevaluate where you want to be

 

[Flopper]

So throwing this out there because some of you I actually respect your opinions.

I've lived in the same Condo Complex since 2004, but a real estate company is looking to buy us all out and convert to Rental units. This is mostly being instigated by the Condo Manager, who wants to retire and is probably sick of dealing with this nonsense.

The good part is that they are going to buy all the units "as is" for about 20% above current market pricing. This probably works out for me because I really do need to do some remodeling, but I'm not going to bother if the place is being sold to a company that's going to tear everything out to standardize them.

So I'll probably walk away with about $60,000.00. More than enough to put down a payment on a new Condo and start over again.

The bad part- I really don't want to move again or to rent again.

The sale will only go through if 75% of the owners vote to go through with it. At current, 48% of the units are owned by people who don't live here, 52% are owned by people who do. So this is a case where my vote will actually make a difference.

The other factor is that the town is about to rezone a commercial property which will probably have a serious impact on the community. Essentially, the county is trying to force this down the town's throat.

So should I take the money and run or vote against the change?

Just wondering, what did you decide to do?

 

[JoeB131]

Just wondering, what did you decide to do?

I voted to take the money, but it doesn't look like enough of my neighbors did. A lot of them didn't vote at all.

They needed 75% to go along with the buyout, and they aren't going to hit that number.

 

[Erinwltr]

So what are you gonna do, Joe?

 

[frigidweirdo]

So throwing this out there because some of you I actually respect your opinions.

I've lived in the same Condo Complex since 2004, but a real estate company is looking to buy us all out and convert to Rental units. This is mostly being instigated by the Condo Manager, who wants to retire and is probably sick of dealing with this nonsense.

The good part is that they are going to buy all the units "as is" for about 20% above current market pricing. This probably works out for me because I really do need to do some remodeling, but I'm not going to bother if the place is being sold to a company that's going to tear everything out to standardize them.

So I'll probably walk away with about $60,000.00. More than enough to put down a payment on a new Condo and start over again.

The bad part- I really don't want to move again or to rent again.

The sale will only go through if 75% of the owners vote to go through with it. At current, 48% of the units are owned by people who don't live here, 52% are owned by people who do. So this is a case where my vote will actually make a difference.

The other factor is that the town is about to rezone a commercial property which will probably have a serious impact on the community. Essentially, the county is trying to force this down the town's throat.

So should I take the money and run or vote against the change?

If you think you can get something better for that money, do it. Depends whether you like living there or not.

 

[JoeB131]

So what are you gonna do, Joe?

For now, stay where I am at. Right now, it's not a buyer's market.

I would like to move to a new place. One with central air instead of radiator heat, and one with a second bedroom so I can set up a home office for my business.

But to move, I'd have to do about $10,000 in repairs and upgrades. I could afford it, but the realtor was willing to pay $20,000 over market to buy as is, while I'd need to spend $10,000 to get market value.

If you think you can get something better for that money, do it. Depends whether you like living there or not.

I did some shopping around, and comparable places in this area are really expensive.

So I won't move.

 

[Erinwltr]

JoeB131

Man are you kidding me? I just paid off my little house in VA.

 

[JoeB131]

@JoeB131

Man are you kidding me? I just paid off my little house in VA.

Well, here's the thing. I used to own a two flat in Cicero. Bought it for 55 K, used it as a rental property for 13 years, put a lot of improvements into it and sold it for $110K in 2000. I bought a condo in 2004 and then Bush fucked up the economy and condos in my complex were selling for half what they sold for in 2004 by 2009.

The market has just recovered enough to where units are selling for what they sold for in 2004 now. I have not done any major remodeling, and probably the kitchen and bathroom have to be reworked after 17 years of wear and tear.

So if I could sell at market value now, after all the years of paying my mortgage, I could walk away with an okay chunk of change.

But this investment company was willing to pay $20K more than market value and no work required on my part, so it was actually a good deal.

But we have all these people who live here who are kind of stupid, or just don't want to be told they have to sell. A group of them passed around fliers with a shitload of misinformation, and it appears some of them bought into it.

The realty company also did a shitty job selling this deal.

 

[Blues Man]

I would never buy a condo because of all this hassle.

I would never build a house in any place with an HOA for the same reasons.

 

[Flopper]

Just wondering, what did you decide to do?

I voted to take the money, but it doesn't look like enough of my neighbors did. A lot of them didn't vote at all.

They needed 75% to go along with the buyout, and they aren't going to hit that number.

Commercial zoning is usually good for property values over the long term because land values go up. Unfortunately, condo owners do not own any land, just their unit. The HOA owns the land and it can only be sold by a vote of the owners. I agree with other posters suggesting you sell because another offer may not come for years and during that time, commercial development may discourage or encourage buyers, depending on the development. I would suggest you talk to owners and try to get them to sell.

 

[2aguy]

So throwing this out there because some of you I actually respect your opinions.

I've lived in the same Condo Complex since 2004, but a real estate company is looking to buy us all out and convert to Rental units. This is mostly being instigated by the Condo Manager, who wants to retire and is probably sick of dealing with this nonsense.

The good part is that they are going to buy all the units "as is" for about 20% above current market pricing. This probably works out for me because I really do need to do some remodeling, but I'm not going to bother if the place is being sold to a company that's going to tear everything out to standardize them.

So I'll probably walk away with about $60,000.00. More than enough to put down a payment on a new Condo and start over again.

The bad part- I really don't want to move again or to rent again.

The sale will only go through if 75% of the owners vote to go through with it. At current, 48% of the units are owned by people who don't live here, 52% are owned by people who do. So this is a case where my vote will actually make a difference.

The other factor is that the town is about to rezone a commercial property which will probably have a serious impact on the community. Essentially, the county is trying to force this down the town's throat.

So should I take the money and run or vote against the change?

Take the money and run. You will be fighting a losing battle. Vote against the change, but realize in the end you will be forced out...and if they get what they want from the rest of the condo owners....their offer is going to go down, and you will likely still have to leave but without the extra cash in your pocket.

 

[Erinwltr]

JoeB131 i Joe. You seem to be ficated on a geographic plae.@JoeB131

What I mean is, Joe, did you sell and make Bank, or did you stay and accrue Bank.

 

[Erinwltr]

Blues Man Have you?

 

[JoeB131]

Take the money and run. You will be fighting a losing battle. Vote against the change, but realize in the end you will be forced out...and if they get what they want from the rest of the condo owners....their offer is going to go down, and you will likely still have to leave but without the extra cash in your pocket.

Actually, the owners defeated the measure, as near as I can tell. We are staying Condo and I'm staying put, for now.

@JoeB131 i Joe. You seem to be ficated on a geographic plae.@JoeB131

What I mean is, Joe, did you sell and make Bank, or did you stay and accrue Bank.

I didn't sell, because the offer didn't go through.

 

[Flopper]

I would never buy a condo because of all this hassle.

I would never build a house in any place with an HOA for the same reasons.

A house is in general is a better investment than a condo for one important reason. When you buy a house you own the land and with a condo, you don't. In general, land tends to appreciate with age while structures depreciate. Of course it's not that simple. Supply and demand, interest rates and your finances can be major factors.

I saw a pamphlet in a real estate office addressing the question of what type of housing should I be looking for. If you don't plan to live in your new home for at least 5 years, you should consider renting. Otherwise consider a condo or a house. A house is generally the best choice for young growing families and people that value a yard, interior space, and being separated from neighbors. Condos are generally the best choice for retirees or those nearing retirement where the kids have left the nest and the yards and extra room in the house has become a burden.

 

[JoeB131]

A house is in general is a better investment than a condo for one important reason. When you buy a house you own the land and with a condo, you don't. In general, land tends to appreciate with age while structures depreciate. Of course it's not that simple. Supply and demand, interest rates and your finances can be major factors.

I saw a pamphlet in a real estate office addressing the question of what type of housing should I be looking for. If you don't plan to live in your new home for at least 5 years, you should consider renting. Otherwise consider a condo or a house. A house is generally the best choice for young growing families and people that value a yard, interior space, and being separated from neighbors. Condos are generally the best choice for retirees or those nearing retirement where the kids have left the nest and the yards and extra room in the house has become a burden.

Here's the thing. I owned a two-flat back in the 90's, and frankly, it was a lot of work with snow shovelling, grass cutting, leave raking and so on.

What I like about the Condo is that I don't have to do any of that shit, and I'm pushing up against 60, so I don't really want to do it.

So if I had to sell this unit, I was looking at another Condo. Looks like that's not an issue now.

 

[Meathead]

Take the money and go for a small house with nobody on the other side of the wall.

The guy lives in a shithole (Chicago FFS) . He certifiably nuts, but if he had any sense at all he would move to a Republican area - he doesn't.