Author Topic: Bad condo!!!  (Read 1431 times)

Dmy0013

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Bad condo!!!
« on: November 25, 2016, 07:58:12 PM »
So where to begin...

I thought I would be mustachian when I bought my first property...

We moved into a nice neighbourhood, I could of got into the housing market for about 375,000 but I chose to go with the cheaper option.  An apartment style condo.

Beautiful Condo, nice neighbourhood, walking distance to bars and restaurants an elementary school etc etc....

Those Starter homes are now worth 450,000 and my condo is worth 20,000 less then I paid... I bought straight from the builder (original owner) so I don't think I overpaid... Well now the market tells me different...

Here is my dilemma... The company that build my condo, has built another 3 apartment style condo's almost the exact same as mine.  Each time making them a little bit nicer, and selling them for the same price.  The most recent building is WAY nicer then mine, everything about it...  And its the same price 5 years later!

The 4th similar building will be finished in a few months...

Just down the street from me ANOTHER condo project is about to begin, roughly 120 suites in this project...

I have a growing family and we have simply out grown this place, and we have always wanted to live in a "traditional" style home.

Do I just lick my wounds and take the 20,000 loss + fees???

I don't see the picture getting any brighter in the next few years, and I am concerned with these new condo projects its going to make my price go even lower, and in a few more years we plan on having another child and there is no way we could stay...

For those of you suggesting I rent it out the rental vacancy rate is HIGH, so its a very low price... I did the math once upon a time and i believe it would be about -500 cash flow a month...  Maybe thats better then taking a big loss?

Very frustrated and confused, any advice is appreciated...

marty998

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Re: Bad condo!!!
« Reply #1 on: November 25, 2016, 09:06:38 PM »
You paid the builder's profit margin, that's where the $20k went.

New properties have a "bright and shiny" premium that lasts for 4-5 years or so. Then they gravitate back to a median. My experience is that new complexes tend to drag up the valuations of the old ones in a suburb, as the suburb begins to gentrify.

You might be well served keeping put, unless there is a large oversupply (which you seem to indicate).

Dmy0013

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Re: Bad condo!!!
« Reply #2 on: November 26, 2016, 06:32:19 AM »
There are 10 units for sale in my building,

Another 50-60 brand new units a couple miles down the street

then there will be another 120+ in another year - 2 years 3-4 blocks from me...

I don't even know if I could sell my place

Freedomin5

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Re: Bad condo!!!
« Reply #3 on: November 27, 2016, 08:41:07 AM »
Yeah, unless the city population/demand is expected to explode in the next few years, that doesn't sound very promising.

waltworks

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Re: Bad condo!!!
« Reply #4 on: November 27, 2016, 11:42:07 AM »
Take the hit, move on.

-W