Why throw cash in the trash? Buy a condo now!

Are condos still a good investment? Despite sagging NATIONAL statistics, first-time homebuyers, students, parents of students, and the many medical residents who live in the Shrewsbury/Northborough/ Westborough area have an attractive investment right under their collective noses. If one will be renting for the next four or five years (when property prices will have risen) it makes sense to invest in a condo instead of throwing cash in the trash by renting in apartments or dorms.

By Elizabeth Hanson The Callan Team What are the main advantages? It's a great idea to buy now while the cost of money is low and the inventory of condos is still plentiful. However, in comparison to March-April-May 2007, the numbers for the same time period in 2008 are changing (going up & down). From this chart you can see that the stats are seemingly random, somewhat like a tossed salad. Take a look:

The cost for renting is as interesting and as diverse as the current condo stats. Shrewsbury's recent rentals have seen prices from $850 per month (for 1 bedroom) to $2,800 per month (for 4 bedrooms). Northborough's units have rented from $900 per month (for 1 bedroom) to $2,650 (for 4 bedrooms). And Westborough's rentals price out at $700 for 1 bedroom to $3,500 for 4 bedrooms). It seems sensible, if you are paying rent, to at least calculate what you'll be spending over the next 4 to 5 years, considering the price range of condos available for sale in the three towns (as of this writing $74,900 for 1 bedroom/1 bath unit to $777,000 for 2, yes, 2 bedroom/3.5 bath unit).

Watch out for the common pitfalls of buying a condo! In order to forgo regrets, the buyer must consider the condo fees for the cost of maintenance and landscaping; a buyer needs to know how the minor and major repairs are handled (and how they have been handled in the past); how much storage and parking is available; who are the other tenants and what is the percentage of owner occupied units to rentals? What are the rules and regs of the association? The condo docs? Will you be able to rent the unit if you move out?

Of course, with a good BUYER'S AGENT, you can be sure that any offer to purchase will be carefully drafted giving the buyer a chance to act fast once a condo is found yet preserve his right to review all condo docs, rules and regs to his satisfaction. Your agent should be able to explain to you how the pendulum of overconfidence in this local real estate market swung completely into the other direction and show you how to benefit from the instability. While it is human nature (although completely counter-intuitive) to horde goods in a bad market but sell in a great market, there has been more downside support in this market than in any past recession. And although past performance is no guarantee of future results, hasn't it been true that when times feel the worst, you're closer to the bottom and ready to bounce back up again?

For more info, call Elizabeth Hanson Independent Real Estate Group serving the Metrowest area at 508-864-1012 and www. personalhomesearch.com.