I live in Washington DC, where studio apartments can go for $2000mo, 1BRs for $2500mo, and 2BRs for $3500mo. I have a position paying around $60,000 but has $15,000 raises every 52 weeks.
Due to making under $67,000 (for the next few months anyway), I have the opportunity to purchase a luxury condo for $215,000 that has a market rate of $550,000 under my city's affordable housing program. There are a few caveats however.
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I will never be able to sell it at the market value. If I ever want to sell it, the government will set the price at a rate they deem affordable and sell it via lottery. They will consider my original purchase price, capital improvements/repairs, and "the sum of the 10 Year Compound Annual Growth Rate of the Area Median Income." Basically meaning, no investment returns but maybe a modest appreciation.
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It can not be rented out (via typical methods or airbnb/etc.).
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I am not permitted to own any other property while I own it and I must remain living in the unit or sell. Even if I die my legatee must move in or sell.
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I will pay the full condo fees, which they have warned can rise precipitously.
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With my raises, I'll likely be able to afford a market rate unit within ~5 years anyway.
A few benefits however are:
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I only need to meet the income now. Even when my salary rises to 6 figures in 2 years and higher, I will still be paying a mortgage on a $215,000 place. Which even with condos fees is cheaper than my current rent.
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No property taxes for the first 5 years and after that the taxes are at a lower rate than typical.
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The condo is very nice. I'd be guaranteeing myself low living expenses and a high standard of living.
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I currently rent under the same program at $1600mo, but will be capped out income wise in 2 years. Forced to pay the $2500mo expensive market rates. If it hasn't risen even more by then.
I posted a similar post in the past, but didn't have full knowledge of the program.
Submitted April 17, 2020 at 07:19PM by manWhatYouWant https://ift.tt/2VgRfFw
