2006-09-25 10:53:18 · 8 answers · asked by Frida06 1 in Business & Finance ➔ Renting & Real Estate
You did not give enough information to answer that.
Here are the main things you want to look at.
1) How long will you be in the house? If you don't plan to be in it at least 5 years you are usually better off renting.
2) What interest rate are you getting? 3000 a month at 4% is a great buy. at 10% I would tell you to keep renting.
3) how long is the term of the loan?
4) How much can you actually afford?
5) does that 3,000 include PMI, Taxes or Homeowners insurance? How much are each of those things?
6) Are you already making plans and saving for your retirement? If not you are better off putting at least part of that 2K/mo into an investment plan for yourself and your husband. I would much rather have 100,000 a year in investment income and pay rent at retirement than a 300,000 house free and clear but no money in the bank for food.
7) how much are you putting down and what is the home appraised for?
8) If you don't get the mortgage what will you spend the other 2K/month on? If you have the discipline and knowledge to invest it wisely it may be a better move.
9) What are property values doing in the neighborhood you are looking at buying into? Do you anticipate them rising (based on real hard facts, not just your "feel" for the place?)
10) How old is the house? Are you prepared to do all the required maintenance yourself?
After you have gotten the answers to the questions above, the "Rent vs Buy" question will pretty much answer itself.
2006-09-25 11:35:17 · answer #1 · answered by Jim R 5 · 0⤊ 0⤋
I am in the same position and save a 1000/per month also.
I know every body says in 30 years you can own, all you have to do is 3k per month for a dam variable interest loan and you never get to own the home. or pay even more and in 30 years it is your.
Let say you take that same 1000 per month drop it an account after 30 years you have 360k truth be told it will be more like 425k and making 2500-3k per month. plus any other saving or retirement and SS. also you should have no other debt, that will be a great feeling.
Or in thirty year you have paid for house, what has happen to the neighborhood? what about other repairers how is the roof going to look in 30 years, they are suppose to last only 10 -15 years and cost about 10k to get a new one the list goes on.
Also I can move any time and you will not see me mowing the lawn of Sundays, some thing breaks i call the land lord. And to top it all off I live on the beach with my own parking garage, and still save over 1000 per month.
And once the dam bubble does pop i am sitting on hard cash if i want to buy. and speaking of the bubble check out this web site.http://www.breakingbubble.com/index.htm
Good luck and check out the facts not hype.
2006-09-25 13:57:14 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Put $1000 toward the rent and $2000 into savings. In a year you will know if you can make this and you will be able to pay less monthly by having a bigger down payment (by $24,000).
Be sure to max your retirement contributions as well. This is the time to do it, before you have kids.
2006-09-25 13:00:42 · answer #3 · answered by anirbas 4 · 0⤊ 0⤋
Pay the mortgage, tough as it may seem. If you get a good price in a good area, you can make a profit on the real estate. Renting is just money down a rat hole.
2006-09-25 11:24:00 · answer #4 · answered by beez 7 · 0⤊ 0⤋
My first question is: Have you prequalified by a lender? This should be your first step. Once qualified, then you want to select a realtor you can trust and feel comfortable with. They are most knowledgable about homes in your area. Good Luck!
2006-09-25 10:56:15 · answer #5 · answered by Alterfemego 7 · 0⤊ 0⤋
are you looking for a place in that price-range? if so you should ask a local real estate agent. i'm not sure where you are, but if you go here and click on a state, you can find an agent who will know the prices of all the available listings in the area. good luck!
http://www.idxbroker.com/news/256_IDX,_Inc._Introduces.php
2006-09-25 11:48:15 · answer #6 · answered by bigmary2 4 · 0⤊ 0⤋
You could look at it this way - you can pay $1000.00 a month for the rest of your life - and you'll own nothing. Or you can pay $3000.00 a month [that's kinda high - are you buying a mansion?] and eventually own your own place.
2006-09-25 11:02:18 · answer #7 · answered by theophilus 5 · 0⤊ 0⤋
Frida06,
You need a complete education on money.
visit DaveRamsey.com
2006-09-25 11:01:03 · answer #8 · answered by Anonymous · 0⤊ 0⤋