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Advice on selling condo to move

PostPosted: Fri Oct 29, 2010 11:45 pm
by marlon
Hi, I got a better job offer in California. I currently own a condo in Redmond, WA. My family and friends tell me I should not sell my condo in Redmond since someday it may increase in value and I would lose all high payments I have made. Here are some details:

- It is a very nice 3 bedroom, unique unit and I believe it has retained value. I bought it in 2005 by $280K. I own $275K. I have a friend who may buy it 'sale by owner' for $290K. I put no downpayment on it. I pay around $2300/month including HOA.

My question:
If I sell my condo in Redmond and get enough money only to pay my debt and I buy a house in California equally at low value, do I lose anything? In my view, if I decide that California is the place I want to live, I would not be losing money because prices there are also low.

If I rent the condo in Redmond, I barely can get $1400/month on it. So it means I would need to put $900/month to keep it and still pay rent in California.

Please advise if my rationale to sell my condo in Redmond to buy a property at proportionally low price in California makes sense.

Re: Advice on selling condo to move

PostPosted: Sat Oct 30, 2010 11:53 am
by ira s
If you bought the condo in 2005 for 285 and you can sell it now for 290?
Sell it, now! Most areas around here are at or below 2005 prices.
If your friend wants to buy it and you've agreed on a price, maybe use an attorney instead of Real estate agents and save on commission dollars?
Things truly are different now in the housing market. We've been seeing something ( the dip) that has been unprecedented in it's duration since the great depression. Nobody knows for sure what's going to happen but it looks very unlikely that prices are going to turn upward anytime soon. Holding on to your condo as an investment, hoping it will turn around, is a very uncertain and unwise strategy. Sell it. Now.
As far as buying immediately in CA, I'm not sure that's such a wise idea.
Do you have an aversion to being a renter?
I guess it also might depend on where in CA. Maybe there are some places where prices have declined more than Seattle, and where mortgage payments would not be more expensive than rents. In that case, you might want to consider it. Or if there's real evidence that prices are on the rebound there ( I don't see that evidence here.)
Otherwise, maybe rent in CA?

Re: Advice on selling condo to move

PostPosted: Sat Oct 30, 2010 12:33 pm
by marlon
Thanks! I think that makes sense.

Regarding your advice to rent in California. You think prices here will not go up soon as well, right? Not that I necessarily want to invest, but my fear is that going back to the boom days, a house I can buy for $550K in San Ramon was easily $1M, so yes, the hit I think was bigger than in Seattle.

My family argues that California is getting worse, broken financially, etc and therefore I should keep my condo in Redmond and who knows someday if I need to return. But living here for 6 months it is very good and I like the weather. I work in high-tech and I believe the job market and quality of living it is still good here in spite of CA problems. I saw yesterday news that California has 70% to default, but you know what, the Washington state and others are not that behind, at 50% chances to default!

Thank you very much for your thoughtful feedback.

So you