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I'm not usually stupid, but in some areas I can make a pretty good run at it. This is one of them.
The situation is that my landlords are in the process of converting some of the apartments here into condos and selling them off. I don't think it's been going particularly well...the three bedroom versions have sold, but they seem to be having trouble selling the two bedroom flats. One of the first ones finished has been vacant for nearly a year, and there's a couple of others that they finished remodeling more recently that also haven't sold. They've put plans to convert the building I'm currently living in on hold and it seems to me that they're getting a bit desperate to move the ones they've already finished.
Basically one of the landlords (who is a good guy, I trust him, unlike his partner) has been trying to talk me into buying one of the empty units. I told him that it was something my fiancee and I had discussed but that we had thought we might wait another year or so and look at one of the units they did later (but now have on indefinite hold.) Mainly the problem is down payment. He said that something might be worked out for that, either with them financing the down payment or through a program Maine has that assists first-time home buyers with down payment and closing costs for +.3% on the final interest rate of the mortgage.
I have no real clue whether this is a good idea, or even what questions need to be asked to evaluate it. I don't know if we'll be living in the area long-term, but it will be at least 3 years and I'd prefer more if it works out that way...but if it doesn't, I don't want to be caught in some kind of real estate implosion. (Is one coming in that time frame? I don't know enough about the market to predict.) What are the gotchas that I need to avoid in a mortgage or in looking at the condo?
Anyway, like I said, small words please as I know nothing. TIA.
The situation is that my landlords are in the process of converting some of the apartments here into condos and selling them off. I don't think it's been going particularly well...the three bedroom versions have sold, but they seem to be having trouble selling the two bedroom flats. One of the first ones finished has been vacant for nearly a year, and there's a couple of others that they finished remodeling more recently that also haven't sold. They've put plans to convert the building I'm currently living in on hold and it seems to me that they're getting a bit desperate to move the ones they've already finished.
Basically one of the landlords (who is a good guy, I trust him, unlike his partner) has been trying to talk me into buying one of the empty units. I told him that it was something my fiancee and I had discussed but that we had thought we might wait another year or so and look at one of the units they did later (but now have on indefinite hold.) Mainly the problem is down payment. He said that something might be worked out for that, either with them financing the down payment or through a program Maine has that assists first-time home buyers with down payment and closing costs for +.3% on the final interest rate of the mortgage.
I have no real clue whether this is a good idea, or even what questions need to be asked to evaluate it. I don't know if we'll be living in the area long-term, but it will be at least 3 years and I'd prefer more if it works out that way...but if it doesn't, I don't want to be caught in some kind of real estate implosion. (Is one coming in that time frame? I don't know enough about the market to predict.) What are the gotchas that I need to avoid in a mortgage or in looking at the condo?
Anyway, like I said, small words please as I know nothing. TIA.
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