but with a condo you're putting most of each month's money towards something you own, not just giving it away.
To be fair, this is only true if you're living in a place for a long time. For the initial years, you're putting only a teeny-tiny fraction of that money towards equity -- the proportion going to equity doesn't start to amount to Real Money until you're a good ten years into the project.
Condos *have* been a good investment, but that's mostly because of appreciation -- that is, since the prices keep going up, you get a lot more equity out of that than you do from the monthly mortgage payment. But my confidence that that's going to continue to be the case is pretty low -- the market is ridiculously frothy right now, and set to drop...
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timeasmymeasure
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Date: 2006-03-28 07:04 pm (UTC)To be fair, this is only true if you're living in a place for a long time. For the initial years, you're putting only a teeny-tiny fraction of that money towards equity -- the proportion going to equity doesn't start to amount to Real Money until you're a good ten years into the project.
Condos *have* been a good investment, but that's mostly because of appreciation -- that is, since the prices keep going up, you get a lot more equity out of that than you do from the monthly mortgage payment. But my confidence that that's going to continue to be the case is pretty low -- the market is ridiculously frothy right now, and set to drop...