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uniqs
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inGearX
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join:2000-06-11
New York

inGearX

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selling or keeping a condo

I have a friend in Antwerp, Belgium

he is a professional engineer..
not happy with his job .. his dream is to travel and see the world ..

he gave in a 6 month notice to leave his job..

thing is he is selling his I think €150,000 apparent

he will get about €30,000 profit .. to travel .. else he has just about €5,000 to travel

his 30 year mortgagee has 25 years more to go

his payment is €1000 a month

max rent he could get is €700 for it ...

hmmmm I just want to ask you - what other options he could take advantage of VS selling?

cause in 25 years he could cash in on this place .. or have it for family ..

cause also later he might have a harder time getting a mortgagee ..

hmmmm what do you think?

thank you ..

Msradell
Premium Member
join:2008-12-25
Louisville, KY

Msradell

Premium Member

There are too many variables in the question you are asking for anybody here to possibly provide a valid answer! It just depends on how he feels about the situation and what he sees happening in the future. The first and most obvious thing to ask is to the plan on coming back to the same city after his travels? If not the answer is obvious. It doesn't seem like he's giving up that much to sell it considering he still has 25 years left on the mortgage. He's going to lose money every month he rented plus he has to consider additional wear and tear by renters. If he sold it he could bank a large portion of the profits for a future down payment. If a decision he has to think through himself, nobody else, including you can give him the best answer.
66860111 (banned)
join:2014-04-28

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Have him seek a financial planner. As a landlord I wouldn't lose money on a rental. I have to break even or turn a profit else it's not worth it. He will be an absentee landlord so that's very tough. I'd highly discourage it.

offff
@68.63.161.x

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not mentioned, but the main question is should he even own a condo to begin with.
with the fees and surprise maintenances they can be expensive.

it would be prudent for him to have some little place, owned, not condo, paid off completely,
to come back to when done travelling.

so, sorry, I'd suggest putting the condo sale profit into something owned, and staying employed a while more til $ surplus, then travel at leisure.
psiu
join:2004-01-20
Farmington, MI

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Definition of a condo can vary, but when I hear it I think of attached townhouse style units, individual entrances, that sort of thing. Community funds pay for landscaping, etc. Owner is responsible for their indoor bit (not sure how roofs play out, honestly).

A property management company will take a percentage (maybe 10% of the monthly rent) and handle everything for an absentee landlord. Of course, you want a good company, and he would probably want a way to steer the rental towards good tenants, not the first person who shows up with enough money necessarily.

Steady income, and like others mentioned, easy enough to start planning a return to his possession or sale when the time is right down the road, if that suits him.

If he hasn't considered it as an option, it may be worth running the scenario past him so he knows it isn't that tough. Find the right professionals to handle it for him (like he handles things as an engineer) and it should go pretty quickly and smoothly.
66860111 (banned)
join:2014-04-28

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66860111 (banned)

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said by psiu:

Definition of a condo can vary, but when I hear it I think of attached townhouse style units, individual entrances, that sort of thing.

A townhouse and a condo are two different things. The definitions don't vary at all but people's understanding of them varies based on the part of the country in which they live. A simple condo definition is an apartment you own. A townhouse is a row of connected houses. Both typically have dues and amenities of some sort.

Condo = a housing structure that is a part of a bigger unit or building
Townhouse = a style of housing where a row of independent and identical houses share walls

stevek1949
We're not in Kansas anymore
Premium Member
join:2002-11-13
Virginia Beach, VA

stevek1949

Premium Member

said by 66860111:

Condo = a housing structure that is a part of a bigger unit or building
Townhouse = a style of housing where a row of independent and identical houses share walls

It all depends on the definition of a condo and in which state it is located (as you stated). Your definition of a townhouse could fit either. I would not consider a Philadelphia type row house into the definition of a townhouse. YMMV.

In Virginia a condo is a real property entity, with a shared ownership in the property. I own one where there are 172 units with only 4 units per building. The definition could also fit a co-op, which may be a multi-story building, or a two unit building. Definitions get blurred depending on a lot of factors. There are laws that govern how those definitions are applied.

In my community. the landscaping is part of the condo association, as well as the roof of the buildings, but the owner is responsible for both the inside, as well as the outside walls. Different from most condos. There are so many variables, it is hard to put a fixed definition on the name.
66860111 (banned)
join:2014-04-28

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66860111 (banned)

Member

said by stevek1949:

said by 66860111:

Condo = a housing structure that is a part of a bigger unit or building
Townhouse = a style of housing where a row of independent and identical houses share walls

It all depends on the definition of a condo and in which state it is located (as you stated). Your definition of a townhouse could fit either. I would not consider a Philadelphia type row house into the definition of a townhouse. YMMV.

In Virginia a condo is a real property entity, with a shared ownership in the property. I own one where there are 172 units with only 4 units per building. The definition could also fit a co-op, which may be a multi-story building, or a two unit building. Definitions get blurred depending on a lot of factors. There are laws that govern how those definitions are applied.

In my community. the landscaping is part of the condo association, as well as the roof of the buildings, but the owner is responsible for both the inside, as well as the outside walls. Different from most condos. There are so many variables, it is hard to put a fixed definition on the name.

A condo is always real property with shared ownership. I own a few condo's in various states (rentals). I've lived in Newport News I'm familiar with how you guys use the term. As I said the definitions are unchangeable but people's use and interpretation of those definitions varies. As you pointed out there are laws involved so it needs to be crystal clear. The legal side of things works pretty much the same in all states from what I've seen with a black and white definition on everything explained in great detail.

"a room or set of rooms that is owned by the people who live there and that is part of a larger building containing other similar sets of rooms"
»www.merriam-webster.com/ ··· dominium

"'a house that has two or three levels and that is attached to a similar house by a shared wall"
»www.merriam-webster.com/ ··· ownhouse

cowboyro
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join:2000-10-11
CT

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Looks like he sucks at planning.
He obviously paid on the apartment more than it's worth it.
If he has 25 years left of mortgage then he hasn't paid anything significant towards the principal.
Has no money to travel but he'll spend all his profit.
joewho
Premium Member
join:2004-08-20
Dundee, IL

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Sell it.
psiu
join:2004-01-20
Farmington, MI

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Not to completely sidetrack the thread, but yeah, there are the textbook definitions, legal definitions, and then whatever the local/common usage in an area is which will color what someone (hi!) thinks of when they see the term.

The OP used it and just wanted to bring up that for many people, they might think of it differently (around here, you don't see very many of the strictly "apartment" style condos, though there are a few going into the downtown Detroit area a bit).

From 08-13 we lived in a townhouse in an apartment complex. Individual address/mailbox/entrance, but what was it? The debate rages (usually as BAC goes up).

edit: most of the buildings were standard 1 or 2 bedroom apartments, but they had a few blocks of the townhomes in the back of the complex. Made things fun. Also made things fun when people disregarded our instructions and followed the GPS which decided the (private) road ended halfway through the complex (despite what their eye and what the PEOPLE WHO LIVED THERE HAD TOLD THEM).