2012 Housing Loan Subsidies (Associated Press)
in Banking, Insurance & Loans ·
I’d love to get your take on this:
My wife and I are thinking about moving out of our rental and finally taking the plunge into a mortgage. We’re torn between two options. First, there's a brand-new 500 sq. ft. condo in a neighborhood that isn't exactly our favorite, offered through an Associated Press program for $90,000. Then, there’s an older 460 sq. ft. unit right in the heart of the city. The layout is much better, and the location is perfect for us—close to my office, daycare, and my parents. We have $25,000 in cash ready to go, and we'd finance the rest. Personally, I'm leaning toward the new build because of the first-time buyer subsidies for the first four years and much better loan terms (lower interest rates, no life insurance requirements, no fees, etc.). My wife, however, wants the downtown spot, even though we'd end up paying more in interest to the bank over the 20-year term. She does realize that a 50-year-old building will likely need constant maintenance, like updating the plumbing or electrical work.
Ultimately, we're worried about resale value, since we don't plan on staying for more than five or six years.
Thanks in advance for your help!
My wife and I are thinking about moving out of our rental and finally taking the plunge into a mortgage. We’re torn between two options. First, there's a brand-new 500 sq. ft. condo in a neighborhood that isn't exactly our favorite, offered through an Associated Press program for $90,000. Then, there’s an older 460 sq. ft. unit right in the heart of the city. The layout is much better, and the location is perfect for us—close to my office, daycare, and my parents. We have $25,000 in cash ready to go, and we'd finance the rest. Personally, I'm leaning toward the new build because of the first-time buyer subsidies for the first four years and much better loan terms (lower interest rates, no life insurance requirements, no fees, etc.). My wife, however, wants the downtown spot, even though we'd end up paying more in interest to the bank over the 20-year term. She does realize that a 50-year-old building will likely need constant maintenance, like updating the plumbing or electrical work.
Ultimately, we're worried about resale value, since we don't plan on staying for more than five or six years.
Thanks in advance for your help!