2006-09-14 01:18:04 · 6 answers · asked by jarynth 2 in Business & Finance ➔ Renting & Real Estate
Take it on lease for a minimal period and then think about how comfortable you are with the house. If you feel its ok after 5 months then think about buying it. Else drop the idea.
2006-09-14 01:26:40 · answer #1 · answered by BABU K 2 · 0⤊ 0⤋
Probably. I depends on where you live and what the market is like right now. If the market is depressed and you can pick up a home at a discount then go for it. That way if you cannot find a renter you can still sell the house. When it comes to renting, I recommend that you have the means to pay the mortgage (if there is one) on this place for the times when you have no renters. Also take out an insurance policy on renter damage. People are much less respectful of other peoples homes. We have renters next to us and that is very much the case. A rental home is a much bigger liability than it appears on the surface. Just be careful.
If homes in your area are selling at a premium, then stay away unless you don't have a mortgage on this place.
Of course, the big answer is what interest rates look like two years from now. If mortgage rates are higher, say 7+ for a 30-year fixed, then few people can afford to buy and more will rent. If the economy tanks and the rates go to cellar again and mortgage rates stay where they are now (or even drop a bit) then more people will buy and fewer will rent. Try the website below to make a guess on rates. It deals with yield curves on rates. If you are a finance person this will help. If you are not, just ignore it and take the top part of the message.
2006-09-14 01:27:57 · answer #2 · answered by Fermat 4 · 0⤊ 0⤋
Yes. It depends where you live. It would be good to know that it was going to increase in value though. You want to research that the area has a buoyant property market, because it would suck to live there a few years, rent it out and then sell it for a loss.
But provided you do your research and are willing to deal with some of the headaches of being a landlord it sounds like a great plan.
2006-09-14 01:23:54 · answer #3 · answered by ZCT 7 · 0⤊ 0⤋
Depends upon the nature of the market where you are. If it's still going crazy insane, no. If there are forty sellers per buyer like there are locally, emphatically yes
2006-09-14 03:52:31 · answer #4 · answered by Searchlight Crusade 5 · 0⤊ 0⤋
now is a bad time to buy a home, because we may be at the top of the market, and you may find your house worth less then you paid for it when you go to sell.
2006-09-14 01:22:35 · answer #5 · answered by Sam 3 · 0⤊ 1⤋
Real estate is one f the best investments you can make. It provides a good return for your money.
2006-09-14 01:25:44 · answer #6 · answered by Gone fishin' 7 · 0⤊ 0⤋