So you are considering buying a home. You've met with a mortgage broker and have come up with a price range of 400,000. Sounds like a lot of money to pay back over the next 30 years. Yet how far can 400k get you in Rockland County these days??
There are currently 10 houses for sale in Nanuet under $400,000.
There are currently 39 condos for sale in Nanuet under $400,000.
So should you buy a house or a condo??
Each has advantages. 400,000 probably buys a much more modern condo than a 400,000 house. (there are always exceptions) Also with a condo the financial responsibility of the exterior usually resides with the Condo Association. Roof repairs, structural repairs, and landscaping are preformed by the Association. This will also result in less expensive homeowners insurance premiums and less out of pocket emergency expenses.
With a detached house, always remember to budget for miscellaneous emergency expenses such as repairs and maintenance. It is difficult to budget for these expenses because they will differ each month. Some months will pass without any suprises but some times you'll have a major expense like purchasing a new hot water heater or patching a leaky roof. Consider 1% of the purchase price for annual miscellaneous repairsand maintenance. SO $400,000 X 1% = 4,000 annual in maintenance and repairs. Therefor you should leave about a 300 cushion in your budget each month. Sounds excessive? Rent the movie Money Pit and then we'll talk.
So if 400,000 gets you a more modern condo with less expenses than a house, why bother looking at houses in that price range?
Privacy...Serenity... Letting your dog play outside... freedom to sunbathe in your backyard in your unmentionables....
Which would you prefer if you were just starting out??