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Is it more prudent to rent an apartment or buy a condo. I have $11,000 saved up. Divorce.?
3 Answers
- ASK88Lv 48 years ago
Rent vs Buy - Regardless of your deposit (since I don't know where you live) the question if you should rent versus buying your own place depends on the area you buy in and the cost of each . Many people weigh this option to see if they will come out ahead financially after a period of years (usually a 5 year period). If you may be moving in 1 year or so renting is the only option that's financially viable in a balanced market. It is very unlikely you could recoup the cost of buying a property and selling it in one year.
If you look at a longer period of time (5 years) in a balanced market the story may be different. The appreciation of the property and equity build up over this time period could more than cover cost and put some money in your pocket.
A major consideration/concern is the appreciation build up of the property you buy. This depends on the economics in your area. Are there jobs being created and new business opening. This activity will bring new buyers into your area and increase real estate prices. Without this, prices will remain flat or fall. So, to answer this part of your question you will have to do a little homework in your area to check out the economy. Reviewing economic data is one of the investor weapons to reduce risk when buying a property.
Source(s): Real Estate Investor/ Retired RE Broker - Anonymous8 years ago
Not likely enough for a down payment. And depends totally on your income and credit history.