Should we rent or buy?

Question

My son to be husband and I are getting married Nov 4th and we are eitther going to buy a house or rent....This is our first time moving out of our parents house... Whats the better idea rent or buy?

From New Jersey by the way...Rent ranges from 900-1200 a month where I am

Our income together is 80,000 and we did get preapproved for 200,000..Which around here is a townhouse or condo!!

Answer 1

rent rent rent easy call , i think in all but 3-4 states real estate is over price , dont listen to a real estate agent , save money & rent for the next 1-2 years then it will be a buyers market , go to yahoo news and punch in real estate read all about it .

Answer 2

Well , this really depends on your financial situation. If you can afford a mortgage, real estate is the best investment. No matter what state your in. The other answer you got from the gentleman, don't listen to the real estate agents, nonsense.
In NJ the home prices are as high as some parts of New York, I'm in Suffolk county. You really need to sit down with a financial advisor or even a mortgage banker and weigh the odds. OK, if you rent you can save money. Do you have money saved now. If so, I'd say buy if you can afford the mortgage. The house is going to build equity for you rent is not, you are paying someone elses mortgage for them ! There are many websites with mortgage calculators, realtor.com is one off them. They have rent vs. buy Check it out !
Don't be afraid ! Also remember that a mortgage is just your home you still have taxes, insurance, utilities, cable or dish, phone, food clothing, misc. items etc. See how much a mortgage is and put that amount away each month including the other items and see if you can do it with $$ left over. If so, go and buy ! if not rent and save !

Answer 3

Considering that I've done both, I'll give you both points of views.

Here's why I think buying is good:
-It is now a BUYER'S market, there is more supply vs demand, which means lower than average home prices.
-After you get married, besides a marriage tax deduction, when you buy a home and mortgage it, you'll get another tax deduction for the amount of interest you pay for your mortgage. When you rent, you get NO tax deductions, only deductions from your checking account.
-It's YOURS. No worries about what the landlord might think. It's your #1 investment.

Here's why renting is a better option:
-If you think that you may be moving (for any reasons, job, school, etc) in less than 2 years, then renting is better. You need to own and live in a house for at least 2 years or else you pay a tax penalty.
-Renting is more convenient. You only need to worry about a few utility bills (phone, cable, maybe garbage, maybe water). Once you own a home, you pay and worry about ALL the bills. If you can afford this, then it's okay but it's still a shock from your renting days.

That's all I can think of. I'm sure you and future hubby will decide what is best for you both. Good luck!

Answer 4

I would suggest waiting a couple of years before buying a home. Getting married and buying a home at the same time..seems like too much at once. You don't want to be overstressed so soon after your wedding. Take a couple of years to save up some money for a down payment and to do a little research on what type of home you would both be happy living in for a long time. It's easy to just up and move if your not happy, when your renting, but once you've bought a place..it's not that simple, plus you can establish some references if you need them when applying for a bank loan. There are alot of first-time home buyers programs out there that will help you when deciding to purchase a home. If you haven't yet established any credit or enough; these first couple of years of renting would help you do that; find ways that you are able to establish some credit, before applying for a home loan, and make sure that your able to afford it, the last thing you want to do is go in debt, or ruin your credit. I wouldn't stick with renting more than the a few years, after that you would only be throwing your money away. Use that time to enjoy your marriage, start saving, planning, establishing credit, and finding out what's available that you would be happy in within your price range..then find a home you can call your own.

Good luck.

Answer 5

Rent a $700/month caravan. Then the extra 500 you save can go towards a home that you want, not just what you can afford.
By going for the budget choice early, and sacrifice a few niceties for the first 3 to 5 years of your marriage, you can pay a 30% deposit on a nice home and not get trapped in mortgage battles that couples find themselves.
It also means that if you find it too hard after 18 months, you can upgrade. But if money is too hard to find in 18 months, you would be downgrading from that quaint house you bought.

While there are no children, and 2 incomes, don't pay the most you can for accomidation, save the most. Bankers and lenders get more from buyers that only have 15% deposit or less. Don't stumble into their lair. Save for a 30% deposit on a house you want to keep for 10 - 20 years.

Answer 6

well, i'll tell you, i am renting my apt now after four years of owning the place where i lived, and i miss it! the only reason we are renting now is because we didn't know the area where we were moving; if you know the area where you live and you know the good and bad neighborhoods and where you want to live, i say buy--try to get the best deal you can, obviously, but i don't see the point of sitting around and waiting for whatever the market is going to do. if you buy, you are your own boss, you can do what you want with your place (unless it's a condo, in which case you usually have to maintain certain rules about the outside); right now, we are waiting for our manager to fix a leak in our bedroom--if this was our place we would have fixed it 3 months ago. BUY! it's a good investment. the worst thing that can happen is the market doesn't go up and maybe you have to rent instead of sell--that's if you even want to move! but if you have the luxury of staying put for a long while, you can stay in your place until prices go up, or just forever.

Good luck. And congrats on your upcoming marriage.

the only other advice i could think of would be if you wanted to make sure of your marriage first, in which case you wouldn't want a major purchase causing problems for you later. but i hope you have more optimism about your future together than that!

Answer 7

Hello
My suggestion to you is to BUY A HOUSE! ...or if you can try RENT TO OWN.. only because renting is REALLY a waste of monthly rent for 12 + years (however long you and your soon to be husband plan to rent) If you and your soon to be husband have the finance or can get a loan i say OWN a home!! if not... then there is nothing wrong with renting. The real reason a lot of people... married couples, college grads, couples, single person etc rent in the first place is because they either one really need a place to live or/and they don't have the finance to buy a home or cant get approved for a loan...and besides a lot of people who are getting married or are already married would love have a house. ... like a town home or a single family house.. don't you think?
well i hope this was a big help
Good Luck and Congratulations!

Answer 8

Unless you are going to be in one place for some time...rent. When you are only living 1-2 years in one place then moving for job promotions etc. it is actually cheaper to rent than to buy. Each time you must sell the house, find a new one, deal w/ real estate people,banks, title companies etc on top of the stress of moving, new jobs etc.
If you are pretty settled though think of buying. Just remember the first rule of buying...buy the worst house in the best part of town you can afford. You can always fix it up to add equity as you have time and money.

Answer 9

you are best at buying a house right now. it is a buyer's market right now, and the rates and prices are at the lowest in like 20 years. so i'd go to the bank and find out how much you are pre-approved for so you get a price range. and if you qualify there may be first time home buyers loans you can get (you can in my state) that usually are about 1% intrest lower than a regular loan. you may end up paying more total monthly in like electric, mortgage, gas, cable etc. and have house up keep to do, but you are paying in rent the same (if not less) as a mortgage payment and you are building equity. not to mention you won't have neighbors that close to you. i'm buying a house right now to so i can get the advatages of a buyer's market! good luck!

Answer 10

Depends, I rent because I cant afford the mortgage cost in Ca and I don't want the hassle of repairs, mowing lawns, painting, upkeep ect. I enjoy renting for now and when I can earn some more money (after school) and I have a little more time (after school) then I will purchase a home.