To Buy or To Rent?

[June77]

Alright I mentioned this in my journal, but no one has replied:( . Ryan and I are considering buying a house. The problem is that we will only be here another 2 years. We are considering buying because if we rent then we will definitely take a loss on rent payments, but if we buy we may not. So what do you think? Whats your advice?

[Deana]

Sorry that I missed this in your journal :)
If you have the means to buy right now, I'd say go for it. It's a buyer's market and interest rates on loans are very good. Hopefully things will turn around in the next two years and when you go to sell, you'll make a profit. Plus, you can deduct the interest from your mortgage off of your federal taxes.
We bought our house two years ago and we have zero regrets. I don't know any homeowners that wish they were renting...
Check out what's available in your area, talk to a bank about loans, etc. It never hurts to check it out!
Good luck - homeownership is wonderful.

[Csara]

I really don't have anything more to add than what Deana said. I agree that if you can swing it, buying is the way to go!

Good luck!

....and I am off to check your journal now :run:

[HeavenLeigh]

I'd say find a cute fixer uper possibly a HUD, VA, or bank foreclosed home and buy cheap. Try to get a FHA loan which will finance 100% if the house is well under market value and give you a loan for the $$ you'll need in repairs. The intrest rates are at a great low right now. In 2 years and after the work you put in you'll have enough equity in the home to walk away with some hard $$.

[HeavenLeigh]

BTW....if you find one do a search at the courthouse. It will show the last sell date, how much was paid, etc... If you go thru a realtor ask them for comparables in the area. They should give you a list of homes in the area that have sold w/in a mile or so radius around....the homes value has some to do with the average value in the neighborhood. It's called fair market value.

[Ellyanne777]

I agree with what everyone else said...especially krysti said to check the last resale price and make sure you won't take a huge loss.

[audrirene]

Go ask a realtor the average amount of days a home has been on the market in your area. If it is under 60-90 days, go for it. But if it is 9-12 months, continue renting! What is the economy in your area? What is the age group? A 3-4 bedroom house will sell quicker than a 1-2 bedroom will. I would probably rent for 2 years. If we were REALLY handy w/ no kids, maybe we would buy... Time is $$. Closing costs are expensive too. There is a lot to think about.

[HeavenLeigh]

In some severe cases when the seller must sell.....finanacial situations, death of a spouse, moving to relocate in a job, divorce, etc... they will agree to pay the closing costs. Look for motivated sellers!

[June77]

thanks guys this is helping a lot. the homes around here sell relatively quickly. other residents have bought even though they don't plan to stay here either. I think the market is good, and there are quite a few good deals around. I think we will start seriously looking soon. I'm pretty excited.

[andrea]

well i vote for rent... just because we dont want to buy a house just because we dont know where or what state we want to live in... makes sense then we are planning on buying a house when we find out where we want to live

[Margarita]

I agree that you should buy. My dad is a CPA, and he says you should pretty much always buy before renting (not if you're only going to be there a year or less). We've been in our house for 2 1/2 years and are planning on moving soon. It's appreciated in value, and we'll probably get enough to cover closing costs and a down payment when we sell. You'll not only get to deduct your mortgage interest, but your car interest, contributions, etc. When you have enough to itemize, you get everything. I can't explain it any better, but if you do buy, you'll want to talk to someone to get help with your taxes next year.