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Old 07-06-2013, 12:20 PM   #62
Tuffy
Veteran Member
 
City: Corpus Christi
Join Date: Jul 2013
Posts: 29
A really NICE trawler can be had for $75k. It would cost at least double that for a marginal condo with a view, but no actual access to the water. And that view would be only of a channel, not the actual bay. But, on the other hand, in ten years, the condo would be worth more than you originally bought it for, while the trawler might be worth half of what you bought it for. But, on the other and, during those ten years, most of your condo payments would have been towards tax and interest, so the only actual equity would be in the appreciation. You won't get back any of the taxes and interest you paid, so that part is a pure expense.

If you bought a condo for $150k, your minimum payments would be around $1,000/mo. In ten years, you would have paid around $120k, plus HOA dues, and some maintenance. A small amount of that would have gone against the actual mortgage. If you sold it and pocketed the equity, you may have still spent the same amount as if you had bought a boat that depreciated.

Unless you have enough money to pay a house off, for the first ten or fifteen years, you are really just renting it from the bank.
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