Saturday, November 12, 2005

Condo Purchase

I went to chat with the sales rep and I was quite surprised by the strong demand for the condos. This is in the face of a real estate slow down. It's been three months since I placed the initial deposit for the condo. Since that time, the prices for the same exact units have increased by 27%. There definitely is some price pressure with some of the older condos, but the new construction seems to be holding up well. People are still willing to pay a premium to be in the city. I'm not looking to flip the condo, but it's nice to know that I've already built some equity in the place. I got my sister to help me select the color layout of the cabinets, counter tops and rugs. She's an art student so she has a good eye for this kind of stuff. I'll submit the 10% deposit next week and then it's a pretty much a done deal. I've already been pre-approved, but unfortunately it's still too early for me to lock in a rate. I have to wait another 3 months before I can lock. Depending how high or low rates go will determine the amount of the down payment. I'm willing to increase the down payment if rates really shoot up. Now I just hope the construction of the condo is on schedule and the stock market behaves. Remember, I still have the remaining down payment invested in stocks. I'll start liquidating those positions shortly.

4 Comments:

At November 14, 2005, Blogger mmb said...

Yep, my condo also seems to have gone up 15% in less than two months. It's the same story in Seattle as well. Preowned properties are slowing down but the preconstruction and new units are still going strong. Congratulations! On your purchase and having all the colors picked out. :)

 
At November 14, 2005, Anonymous Jane Dough said...

Congrats! It is always nice to hear folks purchasing real estate in the Boston area are doing well with the investment.

 
At November 14, 2005, Blogger Money Turtle said...

Thanks guys!

It's actually located in Cambridge, which is a hop, skip away from Boston. Seems like a lot of the finance bloggers are purchasing now. Now we've definitely reached the peak! hehe...

 
At November 21, 2005, Blogger bored said...

You definately must have a strong stomach to keep your condo down payment in stocks! I don't think I would be able to sleep at night!

I'm a little more conservative, and would instead keep that dough in 6mo treasuries...the last auction offered 4.195 %

While it a low rate, its safe (and boring! :) )

just my $0.02!

The Bored Investor

 

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