It’s been a huge effort to keep quiet about this on the blog over the last month or so, but now that the deal has closed, I’m ready to announce that I have purchased a condo!
You’ve probably seen how I’ve gotten a bit frustrated with not finding what I was looking for. There haven’t been many condos coming on the market that meet my criteria. I don’t think it’s just me being picky – I think the inventory has been a bit low as well. So when I accidentally happened across this amazing place, I was ecstatic! My price range was between $275,000 and $400,000. Ideally, I would have purchased a place in the low to mid $300,000 range, but I really liked this place and with the lower HOA dues, it was still completely affordable, both in the upfront costs and the monthly costs.
Some details about the condo itself:
- It has 2 bedrooms and 2 bathrooms and is not only a good use of space, but has a really good amount of square footage.
- It is in a quiet area in the city – no street noise, but close to restaurants and walking distance to my office and downtown!
- The purchase price was in the high $300,000 range.
- The HOA dues are actually lower than any other building I’ve seen in the area (and I’ve seen quite a few at this point). My monthly carrying cost (P&I mortgage payment, property taxes/12, HOA dues) will be less than my monthly renting cost has been.
- It was recently updated and I like the way it was updated, so there are no renovations to consider doing other than painting.
Where did the money come from for my down payment, closing, and moving costs?
- My vehicle replacement fund that was at about $4,000 as of May 31st.
- My down payment savings account that was at about $72,100 as of May 31st.
- I have increased my July budget to account for the moving costs, which means that there is less money from my June paycheck to go to savings. I would prefer to pay for expenses out of cash flow and reduce money going into savings rather than spending down savings whenever possible.
- There was some money left in my down payment savings account after closing, which I’m going to keep around to help with any additional small things like closet shelves or small furniture that I want to buy. Or a barbecue to put on my balcony!
- I left my taxable investments alone! I’m still planning on actually investing this money in something after my July RSU vest and I’m super happy that I had enough other cash around that I didn’t need to touch them to purchase the condo.
I chose to do a 5/1 ARM at 3.00%. The lender I ended up going with is the credit union I use for my daily banking and they are really awesome. My first mortgage payment is due August 1st, which worked out quite nicely since I only had to pay rent for part of July, leaving me with some extra cash flow to cover moving costs directly.
As I talked about before, I elected to not use an escrow account. Insurance is pretty cheap on condos (around $200 for the year) since it’s mostly just contents insurance, so it’s not bad to pay that out of pocket, and the property taxes really aren’t that expensive either.
The place is absolutely gorgeous. I am super excited about painting, moving in, and living in a bigger space that is all my own!
On Monday, I’ll talk about my plan for paying off the mortgage :)
The condo purchase marks a new chapter in my financial life. I’ve been running into troubles coming up with topics for posts, so I’m going to take a step back from blogging. I don’t think I’ll completely disappear (I kind of like doing the big-picture monthly net worth updates and I always have finances on my mind), but I just can’t come up with enough to talk about for 3 posts per week.