Help! Buying a Condo.

[Gary]

Since I will be spending a few more years in LA plus my brother is moving over for school, my parents are considering getting a cheap condo and I will just pay them rent.

Good news for me because rent has been hefty for me and it makes more sense to buy one for the long run. I rather spend money on green fees.

However, I know NOTHING about buying properties, please forgive me.

I am looking at a small studio apartment in Downtown LA which costs about $130k. Nothing luxury or fancy.

Besides that $130k, what other tax & expenses do I need to spend? What's the estimate total damage on my wallet?

I heard down payment is usually 30%. What are the financing options and interest rate? (But I will probably pay all at once)

Thanks a lot!

[LeviTee]

Well, if you plan on having your brother around, you will need something bigger than a studio which are well under 900 sq. ft. and no bedrooms. Where do you go to school or work? What kind of commute do you want? and what is your budget? It is true that homes/condos are at a good price right now, but only if you can qualify for loans. As for a down payment, expect to put down about 25%. Getting a loan now is the hardest part right now. Banks aren't just handing them out so much anymore.

This is an investment and needs to be thought out. As for your monthly expenses you have your normal utilities. Cable, Water & Power, Gas, Trash, etc. A downtown condo and some condos in general will have monthly fees (association fees) some places will have lease land fees (melaruse). Some places you have to pay for parking too.

Lets not forget our property taxes, which being in California isn't so bad at about 1% yearly.

So, figure out where you want to live, your budget and the size of a place you need. Every building you look at will have different fees. Just do your homework and educate as much as possible. I have bought and sold 4 homes in my life and I am 35. If you are in LA, Sherman Oaks area is pretty good starter area. About 25 minutes to Downtown, the beaches.

[Gary]

Thanks dude.

I am probably going to pay all at once instead of getting loans.

I just graduated and have not found a job yet (I am now a freelancer). And my brother just applied to the college I went to in LA but not sure if he will get in. So I think I will get an answer on the exact location in about 3 months. I would love to move out of downtown LA because I've been living there for roughly 3 years. West LA would probably great.

[Fraser]

Originally Posted by LeviTee

It is true that homes/condos are at a good price right now, but only if you can qualify for loans. As for a down payment, expect to put down about 25%. Getting a loan now is the hardest part right now. Banks aren't just handing them out so much anymore.

This is an investment and needs to be thought out. As for your monthly expenses you have your normal utilities. Cable, Water & Power, Gas, Trash, etc. A downtown condo and some condos in general will have monthly fees (association fees) some places will have lease land fees (melaruse). Some places you have to pay for parking too.

I'm a loan originator at a small mortgage company and getting a loan isn't nearly as difficult or hard as people make out, there are several schemes out there designed to make it easier for existing owners to refinance and for new entrants into the market; FHA products and the like which require basically no downpayment, obviously mortgage insurance will be a factor then...

The one problem with this scenario is actually the property itself. The investors my company work with are [b]very[/b] wary of getting into condos right now, at this stage they're seen as a real liability and the paperwork can be a nightmare versus a regular single family residence. So much so that my company chose to stop doing condo loans unless it was a previous customer...

Monthly condo fees can be substantial, $500/mo doesn't surprise me and the area I work in isn't exactly a super expensive area either.

[SoCal Blade]

did I read this right?

1 youre considering BUYING a condo?

2. in LA ? (of all places)

3. A STUDIO unit ?

God bless you and good luck ;)