Should I buy a condo overseas?
August 14, 2010 11:31 AM Subscribe
Should I buy a condo overseas or live in the one my company provides? Special snowflake details within!
I'm an American living and working overseas in the capital city of a country in SE Asia.
Currently my company is providing condos for myself and our coworkers to live in, but instead
of providing us our own individual condos, they rent these big 2-3 bedroom condos and we have
to share, which kind of sucks for 40+ year old professionals.
Our boss recently informed us that this will be changing (yay!) in that they will now be issuing
us individual condos, but the rent cant exceed what they were paying per person for the big
condos ($700 per person per month). The only thing available for this amount close to our
office are studios or 1BRs that have MAYBE 40 sqm/400 sqft which is pretty darn small.
I personally prefer something larger (60 sqm/600 sqft+) and am willing to pay extra (rent on these
units runs US$1000/month or so), but my company isnt willing to give me the money nor allow
me to subsidize the rent theyre paying to get a bigger place. They want to rent a bunch of the
smaller units and issue them to myself and my coworkers; the thought being if someone quits/is
fired, the former employee moves out and their replacement is given that unit. They also want to
try to avoid the inevitable "HIS condo is better than MY condo!" whining.
Oh, and did I mention that my girlfriend is pregnant? So yeah, 400 sqft is not something I
really want to do with a newborn (not that it cant be done, I would just feel more comfortable
having a little more room to stretch out it in).
So thats why I'm thinking of buying a condo here. The problem? All the units I've looked at
near my work run US$100k+ (which I dont exactly have in cash), so a mortgage is needed.
My bank here quoted me a 10 year loan at 11% interest with 30% down. Yes, really.
There is also a building that is close to completion where the builder provides financing
at, oh, 16% with only 10% down. Yes, really. My bank in the US wont do a mortgage for
property overseas as they cant foreclose on it if I stop making the payments.
I'm making over US$100k, have NO debt so I should be able to pay the loan off pretty
quickly, but is this the best idea? Here are my options as I see it today:
A) Suck it up and live in the small company provided unit with my gf and baby.
B) Take the 11% mortgage from the bank and buy a larger unit and pay it off as fast as I can
C) Buy a unit in the building where the builder provides financing and pay it off as fast as I can
D) Rent my own larger condo and pay out of pocket.
E) Do something I havent thought of?
tl;dr I want a bigger place to live than my company provides. Should I suck it up, buy/rent my own
place and pay out of pocket or do something else?
P.S. Anonymous because nobody knows my gf is pregnant yet.