I saw in craigslist today an ad offering a condo for rent in a condo conversion in the City. The owner is asking $1200/month for the 2 bedroom unit. The least expensive two bedroom unit in the MLS is asking $169,900. Basic mortgage math says that the PITI payment for that condo, assuming 30-year amortization and 5% down, 6.5% interest rate says that the mortgage payment, would be just under that $1200 threshold (not including the condo fees). So … when one can rent a similar unit for about the same price as purchasing it – is that still a good buy?
** I am not going to link the condo conversion as I don’t want to be accused of raising a ruckus about any particular development; I may sell one of them one day. 🙂 You may search all of the CharlAlbemarle condos here.