Is buying a condo worth it long term?

Just learned about land leases and was wondering how the expiration date of a land lease affects the market value of a condo.

Lets say I take out a $200,000 loan to own a condo with a land lease that expires in 10 years. Now lets say 5 years passed and I want to sell it. Wouldn’t it’s market value decrease due to the expiration date being closer? (assuming supply/demand stays the same). If it does decrease, how much value would it lose realistically? I’m kinda thinking of it like it’s time decay.

I work in Manhattan as an Accounting Assistant @ $51k/yr Gross with only $1k/yr in expenses because I live with my parents. Even though I want to own a home and it’s ground, there’s no way in my location even with a DTI of 50% lol. That’s why im contemplating if it’s worth it to look into condos. How does the current housing market affect condo prices too? I assumed higher interest rates lead to lower demand which leads to lower housing prices.

submitted by /u/De_Clarity
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Just learned about land leases and was wondering how the expiration date of a land lease affects the market value of a condo. Lets say I take out a $200,000 loan to own a condo with a land lease that expires in 10 years. Now lets say 5 years passed and I want to sell it. Wouldn’t it’s market value decrease due to the expiration date being closer? (assuming supply/demand stays the same). If it does decrease, how much value would it lose realistically? I’m kinda thinking of it like it’s time decay. I work in Manhattan as an Accounting Assistant @ $51k/yr Gross with only $1k/yr in expenses because I live with my parents. Even though I want to own a home and it’s ground, there’s no way in my location even with a DTI of 50% lol. That’s why im contemplating if it’s worth it to look into condos. How does the current housing market affect condo prices too? I assumed higher interest rates lead to lower demand which leads to lower housing prices. submitted by /u/De_Clarity [link] [comments]

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