redwine
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BUY BUY BUY |
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19G30
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I think it's a buyer's market so it is a good time to get some low prices. Since you are not married you might draw up a legal document outlining who is responsible for payments. |
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Ash66
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All variables favour that you buy except "May move again in two-three years".
Also, since you are not married (not completely settled), I would say you should rent. |
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Nickname
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I would definitely buy. I don't see any drawbacks to your list there. How is your personal debt? Your potential to move again in 2-3 years is not a definite. And 3 years, being the soonest you could wisely do it, would not be an enourmous detriment to your purchase - especially in this market. If you can afford that downpayment, keep your mortgage close to your current rent costs and get a huge deal on a fairly new place, go for it.
Stop throwing your money down the rent drain. But be sure you don't live beyond your means. They say you should spend about 28% of your gross monthly salary on housing costs (mortgage, insurance, taxes). Good luck!! |
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Kaptain Krakatoa
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If you're probably going to marry your GF, then buy the house. It will be a drag having to pay PMI, but at least you'll have equity the next time you move. If you have doubts about marriage, keep renting, it will be less of an issue if you break up. |
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Gravy B
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Buying is always better than renting, as your mortgage will be lower and you'll receive tax credits. You'll also have equity when you sell. However, if you already plan on moving in a couple years, buying doesn't make sense, as you probably won't recoup your selling costs in two years worth of equity (not in today's market). |
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Lizbeth R
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I think you should buy because the money you are currently paying in rent you can be investing it in buying a house. |
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Loreen W
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buy it saves you soooo much money in the long run good luck |
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♥ mocha-baby
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If your realtionship is pretty solid I think you guys should buy....it is VERY worth it...plus is to your benefit NOT ur landlords' good luck |
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Calleigh
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buy |
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Real Estate Guy
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Rent.
For 2 reasons. You said you will move in 2 years. You will not see the property increase that much in 2 years.
Second, you are not married and she is only a girlfriend (your words). If you buy a house together you both own it. If you break up, what happens? |
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Akhs
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Better buy one in the next year or two.
Now that you are in late twenties having a a house of your own is necessary. |
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Godzilla Gal
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Rent . Values of homes will collapse a long with the dollar - Stag-flation is upon us . A looming Depression , your 200k could be worth as little as 100k sooner than you think .... Welcome back to the 70's |
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smckech1972
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My wife and I were in the same situation back in August. We ended up buying because we had some bad experiences renting in the past. The home we were renting is what we were given the opportunity to buy. We love the house, location and neighbors and we do not have a plan to move anytime soon.
In your case, since you do not have 20% to put down, you will have to pay PMI insurance. The price varies on the price of the home. In our case, the house was $155K and the PMI is $150. PMI drops off after a few years or when the house reaches 20% equity. Note, we also live in PA.
In your case, given the current market, would you think you'd be able to break even or make a profit prior to moving in 2-3 years? If yes, the I'd say go for it, if not, then no.
If you are a first time home buyer, you can do a fannie mae 100 loan. This covers 100% of the mortgage. Since your company would pay closing, you'd have really no cash out. Then you could use that cash to do any improvements OR you can always put it down to drive the overall principal down. |
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gemini
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If you bought now,only to move again in 2-3 years, there's no guarantee that you would be able to sell the house. You really don't want to rent it out and become Land Lords either,it's more trouble than it's worth. So I would say wait until you know where you will be permanently. |
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johnnymilan1
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Ryan,
I am a Real Estate agent in North West FL. I am currently telling customers to buy now. In gerneral the Real Estate market is buyers market. With the small amount that you will be financing I dont think the difference in payment would be to great and you would be building equity and credit. If your doing a 30 year fixed I would reccomend having the interest only portion make up the first few years of your mortgage. Real estate is meant to buy aproperty , enjoy it for around 5 years and then when it comes time to sell the value will have increased enough to merit selling it for a small profit. What got the real estate market in trouble over the past few years was people trying to buy something with an ARM mortgage in hopes of a quick flip and making some quick cash. So, I would do a Comparative Market Anyalsis. Hvae your real estate agent do it if you dont have access to the information. I usually recommend about 20% down for down payment as that will drasticly lower your monthly rent. Also, if you can get in on a town house or condo usually the homeowners association dues cover the exterior of your property. where as with a house you will have to pay all of the insurance yourself. The way the market is now you can usually get in on about 15-20k below asking price on something in the 200k range. As far as the closing cost being paid, well if your area is as bad as ours the sellers are more than happy to pay that anyway.
Also, if you have the option of looking into home auctions,Foreclosures and short sales I would highly recommend doing so. You can usually find fantastic deals. For instance, you might be able to get a house that was originally 500,000$ and only pay around the $200,000 price range because the house has been forclosed on. Remember, the bank just wants their money back.
In closing the answer is YES!!!! Now is the time to buy. Interest rates havent been this low in years and you have motivated sellers which all bodes well for you the buyer and givs you all of the power in negotiation. |
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fontainegraphix
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Wow..this would depend on a few things. If you can find something that is priced under value then you'd get the equity when you resold the property. Now, the only concern is that you are only planning on staying there for 2-3 years. The market may still be down then, so you may not get a good return when selling. Do you want to cut grass and deal with maintenance issues? Do you want neighbors below you and above you? Free closing costs sounds great, but you can roll closing costs into a mortgate and with this market can even have the seller pay for them at times. Just be careful and don't jump into something that sounds like a good deal, or you could end up owing in the end. Good luck, hope this helps! |
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bibsian
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paying rent is " dead money "
its a no brainer BUY !!!!
all the best
Ian |
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Dick J
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If your relationship is solid, buy. |
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Mr_Masks99
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The problem with renting is that you have no equity. If you own a home, you can turn around and sell it and actually make money, where as if you rent you are throwing money at someone that you will never see again.
If you are able to get a loan for the home and finance it in a way that you are just paying the interest for the loan, in 3 years time you could turn around and sell the house when the market and value of your home has increased, netting you a profit. Obviously, you'll want to get home from your bank's loan person or an accountant, but I personally think it makes more sense to buy because you are at least getting some form of equity out of it. You do have to worry about property taxes since you are no longer renting, but I think it is more worth it to buy. |
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I luv Matt!
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Why pay somebodys else's house off? If you can afford to do it then you should. And it sounds like you can if your paying $900.00 a month. You will save so much money. Just think..your giving someone $900.00 a month and you get nothing back from that. But if you invest that in a house, well you have a house! Rent money is dead money! |
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Ask Amy!
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I would recommend that you buy no matter what the market looks like. Either way, a Realtor can provide you with a summary of your financial situation in 2-3 years buying or renting. It will tell you how much money you will save by renting or buying. In almost every case I've seen most people benefit most from buying. Based on your specific situation a Realtor can get you numbers on how much you would save.
If you need help finding a Realtor I can refer someone to you anywhere in the U.S. Feel free to contact me with any questions. |
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Superman Ninja
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Well it all depends..how much do you and your girlfriend make together? If something were to happen to one of you would you be able to live off one income? Planning to have kids? |
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twinklette.doombunny
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at least where i live, it is *cheaper* to buy then to rent.
ie: you can get a 1 bedroom for between 550-700 a month.
OR
you can "rent to own" or buy for around 1,300 a month for a 4 bedroom.
then you can rent out those rooms (to students and stuff) and have your morgage paid for you. even if you move, if you keep the house and rent it out, then you can pay your morgage and your new rent (or most of it anyway) |
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jefskta
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I'm thinking of the other variables:
- Will the home be in your name only?
- Do you plan on children?
- Do you plan on marriage?
- If you decide on children, is relocation a good option?
- What is the future value of the home(s) you decide on?
- Are you prepared for the upkeep/maintenance of home,
considering with rentals, that everything is handled for you?
- Would waiting for a permanent purchase be more suitable?
Its just a few of many thoughts that come to mind when you are making a life changing decision. These things have to be considered too. Its not quite as simple as renting -vs- buying.... it sounds better, but think it through clearly. Good luck to you both! |
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Kidd K
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rent |
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mr.truth
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rent now as house prices are very volatile |
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