Hi everyone, need your valuable suggestions for a situation I am in. We are moving to Rockford area for 2 yrs and then will be moving to other place. We saw a condo that we like but rentals not allowed at this time as it reached its capacity, and may need new HVAC so around 10k and condo is in good condition. For these 2 yrs we can buy this condo with cash around 190k instead of renting and then sell it after 2 yrs after we move? Will it be wise to do this or to just rent for 2 yrs? Rent is around 1600.
You're facing a classic rent-versus-buy dilemma with a few unique factors, and it's smart to carefully weigh your options. On one hand, buying the condo for around $190,000 in cash could give you a stable, comfortable place to live for the next two years. Since you wouldn't be dealing with monthly rent payments, your primary costs would include property taxes, HOA fees, insurance, and any maintenance that comes up—most notably, a potential $10,000 HVAC replacement. Because you're paying cash, you'd avoid mortgage interest, and you'd build equity during your stay.
However, there are some serious drawbacks to consider. One of the biggest is that the condo doesn’t allow rentals right now due to the HOA reaching its capacity. That means if you decide not to sell right away or have trouble selling, you won’t be able to rent it out to cover costs. You’ll also need to factor in selling costs down the line, typically around 6–8% of the sale price, or about $11,000 to $15,000. That’s money you likely won’t recoup in such a short holding period. And because condos typically appreciate more slowly than single-family homes, you’re at greater risk of losing value, especially if the market softens during those two years.
On the flip side, renting at $1,600 per month for two years would cost you about $38,400 in total. That money doesn’t build any equity, but it comes with much greater flexibility. You won’t be responsible for any large maintenance items, like replacing the HVAC, and you can move at the end of the term without having to worry about market timing, showings, or closing a sale. Renting can be especially appealing if you're not committed to staying in the area long term and want to preserve capital for a more strategic investment later.
Financially speaking, if you bought the condo, covered the HVAC, and then sold in two years for roughly what you paid, you could still end up losing $20,000–$30,000 once you account for transaction costs and potential market fluctuations. Renting, while it provides no financial return, is a fixed and relatively low-risk option.
Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.
Unless in a hot market or renovation situation I tend to want a 5 year time frame before I consider purchasing. Also condos can also be challenging not only based on rental restrictions but condo fees that add up and when you try to sell there may be multiple identical units available which can make them trickier to sell.