I just want to know because I want to attend graduate school in a different place, but I want to make the right economic decision. I'm not sure if I am going to want to stay int he same area. Thank you!!
2006-12-02 14:16:26 · 10 answers · asked by Domi F 1 in Business & Finance ➔ Renting & Real Estate
Then you should rent....
If you buy and you move, most likely you'll have to sell and then you'll have to pay the sales commission(about 6%). Also you'll have to pay the various closing costs associated with the loans.
The old rule was 5 years...I think it's a little shorter these days.
2006-12-02 14:18:40 · answer #1 · answered by feanor 7 · 0⤊ 0⤋
Pal, take a look at your life. You are 21-23 years old. There is a time for everything. Do not get caught up in the whole real estate frenzy. You are going to graduate school, congratulations you have made if very far, you do not want to lose your focus on other things such as mortgage, taxes, insurance, property maintanence. What you should concentrate is on your education, your education will give you a great career, and this career in the future will provide you income to support a family, own a home, with much less worries. Purchasing a house is getting easier these days, however it is also getting easier to get foreclosed on. And nobody plans on foreclosing, it happens due to lack of consideration.
If you are considering purchasing a home because you have money saved up, I would rather suggest you putting that money in another investment that can provide you return on your money without having any additional monthly expenses. A liquid mutual fund would be a great idea. You would always have your money available to you, and when you don't touch it it will bring you interest.
If you are depending on your income to purchase a house. Affordability should be the number 1 factor, (your debt to income ratio with housing expenses included (mortgage, taxes, insurances) should be at most 40%. Once you know you can afford it, you must consider the location, which seems to be your concern here. As a young individual you should consider purchasing a home that can provide you a nice environment. As a residence for attending college, you shouldn't be too concerned with an updated, remodelded home. Purchase something inexpensive, that can provide you a good shelter and good study for you. In time, this house will appreciate, and real estate appreciates at an average of 6% nationally, (do not get caught up with what has been going on in the real estate market for that past few years. (Real estate goes up and down) but up at a steady rate of 6%.) So how long will you be in graduate school? An ideal scenario for you would be at least 2 years, so you may escape capital gains taxes. Plus, owning your own home can give you a tax break, if you work.
You will be deciding what to do, you know better than all of us what your plans are for yourself. So take in consideration what I mentioned and make a clear sound decision. But remember, do not make this something to contemplate too much about. Your main concern should be your career, and your education will get you there, so have that as 1st priority. Your parents should be proud of you, good luck with life, and keep up the good thinking.
-Nodari-
2006-12-02 21:45:34 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Even if you were moving to that place permanently, you should rent for one year before buying. that way you'll get to know the different neighborhoods and transportation routes and such.
Looking at a city for the first time can be misleading. A house that looks like a great deal can be near traffic problems at commute times, may be adjacent to a high crime neighborhood, etc. When you do go to buy, you should rad the local paper while you're waiting. If you keep seeing problems in the same areas, they might be in decline.
A rule of thumb is to buy after one year if you plan to live there for five years. One or two years of appreciation is not worth the risk of home ownership.
A tip for homebuyers: buy a house which is east of where you work. That way you'll have the morning sun to your back on your way to work(driving west), and the setting sun to your back on the way home (driving east).
2006-12-02 14:26:08 · answer #3 · answered by normobrian 6 · 0⤊ 0⤋
Renting sounds like the best choice to make in your situation. You don't know if living there and making it perminant is for you. So rent for know and when you come to decide on living or moving it will make the process easier. Selling a place takes time and with renting you can move out when the lease expires. You can give the landlord 30 days notice that your moving out. Only risk you would take is getting security deposit back.
2006-12-02 14:30:16 · answer #4 · answered by giya_98 3 · 0⤊ 0⤋
Rent! Seriously. You're going to have grad school bills out the yin-yang, no time for home maintenance, house payments, home insurance, property taxes, and when something breaks you have to be there for a contractor. Plus you may only be there for a short while so that's not enough time to build home equity.
I'm very serious about renting a basic place and saving as much money as you can.
2006-12-02 14:27:25 · answer #5 · answered by chefgrille 7 · 0⤊ 0⤋
I would just rent until you get through graduate school and start your career because if you buy and end up moving on, you may have to sell the house when the economy is more friendly to buyers and you'll lose money instead of making it.
2006-12-02 14:26:06 · answer #6 · answered by soulguy85 6 · 0⤊ 0⤋
Renting is the best thing to do. Is some states (Maine) you can get a special tax back deal if you rent when you file for taxes. Plus when you rent you do not have to worry about fixing things up like the plumbing and heating and what not, usually that stuff is covered by the person who is renting.
2006-12-02 14:27:36 · answer #7 · answered by Rachel_Rabbit 2 · 0⤊ 0⤋
if your only going to stay a certain amount of time, lease, because it it could take months to sell your place in this market. I would go with a month to month if you can until you are sure you want stay, so you don't get locked into a lease u don't want to keep in 6 months. when u are sure u want to stay, then look to buy. it may be even cheaper buy that time
2006-12-02 14:23:51 · answer #8 · answered by Jen 5 · 0⤊ 0⤋
I`d flow to a distinctive united states of america. I stay in the united kingdom and that i hate our long depressing chilly winters. apart from the climate, the united kingdom isn't a bad place to stay tho. If the climate replaced into ok, I`d purchase a extra constructive domicile right here and stay right here.
2016-10-17 15:22:19 · answer #9 · answered by Anonymous · 0⤊ 0⤋
IMO, if you are sure it is going to be a short period then rent. However it is almost always better to buy if you are getting situated somewhere.
2006-12-02 14:21:26 · answer #10 · answered by pghpanthers2 2 · 0⤊ 0⤋