Author Topic: Should I be buying a condo for the access to credit?  (Read 236 times)

gigi

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Should I be buying a condo for the access to credit?
« on: August 08, 2017, 06:14:40 PM »
I have been reading around to try to get my questions answered but my situation maybe unique enough to warrant a post.

I currently live in a large American city for a job that may last a few years. I'm an expat and will unlikely live here long-term as I'd like to move close to family in 'home-country' at some point.

I have free housing in my home country in my family home-however, I cannot own real estate there as access to credit is quite restricted and there's a huge real estate price bubble.

I've lived in a rental here in the US for two years and have been flirting with the idea of buying. I've run numbers on rent vs. buy and it's generally very close (in favor of rent). However, back of napkin calculation show that if I do buy and eventually rent the condo out after I move rent should cover costs (PITI + 10% for property management + some cash-maintenance, vacancy).

Does the fact that I am able to cover the mortgage even if I'm living somewhere else and that real estate will offer me a line of credit should I need it in the future that I may not have access to as easily factor into my decision?

Best case scenario is tenants build equity while I'm away that's available to me when I need it. Worst case is price drops significantly and the unit stays empty forever. I should add I have 0 debt and have enough for a down payment. Also, I save around 70% of my income currently.

What do you think? Is there something I haven't thought of?