Posted by Gavin Wilkinson on September 14, 2004 at 13:19:15:
You don’t even have enough money to pay closing costs!!!
New business endeavors always soak up more capital and return less than you think in the first year. You have no emergency fund. If you are laid off, or get sick, or your mother gets sick or someone crashes into your car, or the economy goes south or any one of a thousand other things goes wrong you are bankrupt next month!!
Suppose the condo does not build equity. It loses 10% as soon as you sign the paperwork, because to resell it you will incur a real estate sale commission(6%) and sales costs (3-4%). Suppose prices go down next year. You could be underwater by $20,000 in 6 months.
Rent for a year. Save some money each month. When you have enough money for a 3-6 month emergency fund, try purchasing again.