Is it better to buy a house rather than an apartment even if you are not sure if you will stay in the area for more than two years? I was thinking that it is better to buy a house because even if you make the monthly payments on the mortage, you will still get that money back when you sell the house when you move away to some place else. Is this correct?
2006-10-02 08:29:53 · 9 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Great question. Depends on where you live, true, but depends more on your situation. Can you put anything down? If not, financing 100% may not make sense. If your housing market does deteriorate, you can end up being "upside-down" on your home, owing more than what it's worth.
If you rent, you are truly throwing your money away every month but at the same time, when your lease is up you're gone, and you can wash you hands of it. That's a little harder to do when you own. There are a ton of variables, and no one answer is wrong, except for the one about the trailer. Manufactured homes in most instances are on rented land, therefore they lose value over time. That is a route you definitely DO NOT want to take...
Do some research. Find out at what rate homes have been appreciating in the area you are looking in. Find out what the typical marketing time is to sell a home in the area. And last, but not least, find a professional who can help you make a sound, well-informed decision after assessing your goals and your financial picture.
2006-10-02 09:04:37 · answer #1 · answered by Justin 3 · 0⤊ 0⤋
For the past 10 years now residential homes have been going up in prices so your correct to think you will get your money back when it's time to sell however, the bubble market in the US has popped and housing have started to slow down, interest rates started to going up and builders have slowed down as well. I think if you purchase a house now you will loose money within 2 years due to market slowdown and mortgage payments will definitely be higher so double whammy in two years time. I think house prices will go down significantly (maybe 10-15%) for the next 5 years.
If I were you I'll get an apartment for now and wait until you see house pricing starts to go up again then buy.
2006-10-02 08:49:03 · answer #2 · answered by Mt. Kilimanjaro 2 · 0⤊ 0⤋
when you buy a house, there is the possibility of making your money back; there are a lot of things that could make it difficult. renting an apartment is just throwing money away. there is no potential for return whatsoever. i would say buying a house is a better investment, but if you are only going to stay in the area for 2 years, you may not have enough time to flip the house for a profit
2006-10-02 08:37:19 · answer #3 · answered by yonitan 4 · 0⤊ 0⤋
I AM NOT SURE BUT I WOULD SAY BUY A HOUSE BECAUSE AN APARTMENT WILL BE RIGHT UNDER SOME0ONE ELSE AND HARDER TO SELL A HOUSE WILL BE TO IT SELF AND EASY TO SELL BUT IF YOU DONT THINK YOU WILL BE AT THE SAME PLACE FOR MORE THAN A YEAR , IF IT WERE ME I WOULD BUY A TRAILOR THAT WAY IT WONT COST AS MUCH AND YOU CAN RENT IT OUT AND GET YOUR MONEY BACK IN A YEARS TIME OR TWO YEARS AT THE MOST
2006-10-02 08:37:04 · answer #4 · answered by queenbee 2 · 0⤊ 0⤋
It depends on your local real estate market. In some parts of the country, homes appreciate at a faster rate than condos. Some parts of the country the opposite is true. There is not one right answer. There are many variables that will determine future value of real estate.
Either way, it is better to buy than rent!!! Good Luck and happy home buying...
2006-10-02 08:42:18 · answer #5 · answered by LasVegasMomma 4 · 0⤊ 0⤋
The majory of your payment for the first many years go for interest, and the rest (a very few portion) goes to your equity.
Moreover, after you buy home, it is not only mortgage payments. there are other payments you need to consider including insurance, utilities, maintenance and others.
I would recommend to research more before taking your decision. A good website like http://money.cnn.com (go to personal finace tab and then money 101) might be a good help.
2006-10-02 08:42:53 · answer #6 · answered by answerMePLS 2 · 0⤊ 0⤋
In the current market...better to rent...save you money, fix your credit, and watch the show...In 18 months people will be beating dowmn your door to give you a home and a good rate because you have CASH which the banks will need....
2006-10-02 10:51:23 · answer #7 · answered by bigdaddy_longstroke_2000 6 · 0⤊ 0⤋
Depends?
2006-10-02 08:31:22 · answer #8 · answered by god knows and sees else Yahoo 6 · 0⤊ 0⤋
Tax break on the interest and rising property cost may make it good if you buy it right.
2006-10-02 08:35:12 · answer #9 · answered by super stud 4 · 0⤊ 0⤋