Need advice on whether or not to purchase a townhouse

[#Michael]

Quick overview of the story. I currently rent and have always rented. The townhouse is a 2 bedroom/1.5 bath approx 1440 sq. feet. It's a great place and I love it. My landlord is great and basically gives me free reign over it. I basically am a home owner already but don't have the responsibility....if something bad happens I call him and he fixes it. But he is looking to get out of the landlord business and wants to sell. He is giving me first dibs on it and would like to sell to me. It was built in 1979 and of course has some issues for being 30+ years old. Few things:

1. It isn't listed yet and I don't know what his asking price is versus what the estimated selling price would be. I have spoken with two realtors and they put a price on it of approx $150K.

2. I have never wanted to have a mortgage. A mortgage scares the crap out of me.

Am I considering this because I am at this point where I have no choice? I already have in writing that my landlord will honor the entire lease if I choose not to purchase it but he hasn't said yet if he will re-sign it if it is un-sold when the lease is up for renewal.

I really need some advice either way.

[Andrew Lyle Global Moderator]

I purchased a townhouse last year (new build). I'm still waiting for it and move in in 5 months. I put every penny I had down on it and it was the BEST decision I have ever made in my life. I haven't even moved in and it's already up $35k.

I do plan on living there for a year or two and buying a new one.

It's 1300sqft, and I paid much more than you. But I'm also in Canada, and prices are generally higher than places in the United States.

[Growled Member]

The housing market seems to have recovered somewhat and I wouldn't be as afraid of purchasing now as I would have been a year ago. However, a lot still depends on your local economy and the townhouse's location. It would probably be a better idea to ask local people about this. Especially other people who have townhouses.

[moloko]

now is perfect time to buy. now i looking to buy a second house and rent out my first one.

[HawkMan]

whether you rent or own you pay about the same, in fat maybe less if you own, but you need to always put a little bit away for emergencies.

the difference is of course that if you own you can always sell or rent it out later and get money back, rent is gone.

[bdsams Veteran]

If you can afford it, buy it. Mortgage rates are insanely low right now and will only be going up (they are at the bottom according to most economists)...if you have good credit in the US, you can get a 30yr loan for under 4%.

[Anibal P]

Now's the time to buy, what I would do is have the townhouse inspected and have the landlord fix any and all major issues the inspector finds as part of the sale agreement, also, hire an inspector but try and not use one if the landlord suggests him/her, try and get a completely unbiased third party for your safety, and even if you don't go this route, still have it inspected so you know exactly what you are getting into when it comes to long term maintenance of thebuilding

[remixedcat]

It's always a better idea to get the worst house in the best area.... rather then the best house in the worst area

You can always change the house up easy.....

but it's way harder to change the area.....

[ACTIONpack]

I own a townhouse and it's one of the worst things I ever got. They don't retain its value and its something that a lot of people don't want because the month fees keeps going up ever year. When I move in the month fee was about 80 dollars a movie. That was in 2007. In 2012, its up to 230. Pretty much half of the people don't pay for it and is a big reason why it keeps going up. Get a house instead and you don't have to worry about noise too.