S. S. wrote:
I need your help in assessing the options for me. Here is the

Right now, need to move to a bigger place. So either can rent a
two-bedroom apartment (monthly rental will be around $1,300), or buy a
condo or a townhouse at over $200k (once again will put 20% down
payment) in this area. But given that we plan to buy a single house
in, let's say, year 2008, we cannot decide whether the benefit is any
bigger to buy a condo/townhouse and then sell it in the 4th year. If

I would probably lean toward buying a condo in a good location
if possible. If the real estate market explodes for some reason
your condo resale value should offset some of the unexpected
increase in costs for the house your want to buy. On the other
hand, if real estate tanks, you might be slightly worse off
but the house cost should also be easier to afford.

If housing costs skyrocket, your rent may go up, but a
mortgage payment won't. Finally, I think in the most
likely scenario, you would probably break even or
a little better in 4 years. As others have said though,
you should look at insurance, taxes, and maintenance fees
to make sure it isn't a real losing proposition to buy.

Bill Ranck
Blacksburg, Va.