Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Should we rent an apartment or buy a house
Hey
So my husband & I are currently living with some roommates, yet we are more than ready to move out on our own. My husband wants to buy a house now, however I am thinking it's better to rent given our current situation.
-- We want to move out ASAP- we don't like living with roommates, so we'd like to move out in the next few months, which I don't think gives us enough time to get a nice home
-- We still want to travel and still need to get big ticket items
-- My job is okay, make decent money but I'd definitely switch if something better came along
-- We still don't have a lot of furniture
I'd love to buy a house, but with all the finances and given our situation, I think it's better to rent but I'm weighing all options the best I can. I also don't want to rush into something (since we're dying to leave where we're living now)
My husband really wants a house because he wants to put money into something we'll keep, and he wants to work on those home projects (tending a garden, fixing the roof, painting the walls etc) Plus with the market, everyone says "now is the time"
What are your thoughts? I also want my husband to be happy, so if we end up renting, I still want him to do home projects if he wants to, like building furniture, so he can still work at owning a home.
What are your thoughts? Rent or Buy?
Re: Should we rent an apartment or buy a house
There really isn't enough information here to give you an answer.
Do you have an adequate down payment saved? You'll also need money for closing costs and the big ticket items you mention, as well as an e-fund to cover any repairs.
How are your credit scores? How stable are your jobs? How much other debt do you have? Buying a home is much much more than the monthly payment, and you really need to think about the big picture before you jump into something like this.
You left out a few important items...
-Can you AFFORD a house? (You'd need a hefty down payment, e-fund, more $$ for utilities, etc.)
-Are you planning on moving in the next five years? If yes, then rent.
You need to sit down and crunch some numbers. How much more money will owning vs. renting cost? Don't forget to include taxes and utilities. In some areas, the difference is negligible. You may still have money to travel and furnish a home while making mortgage payments. You should also keep in mind that most people who buy their first home let some rooms go unfurnished for some time while they save up money.
If you've really considered all this stuff and your mind is still not made up - rent. It's a lot easier to stop renting and then buy a house than it is to sell a house and go back to renting.
Cortlandt Place - My house blog
So - do you have a 6 month emergency fund in place?
Do you have a 20% downpayment? Money for moving, start up deposits, repair/renovation funds, money for decorating and furniture/appliances, and a ton more for all the extras you need for yard upkeep, tools, ladders etc?
Do you have consumer debt?
This would be my plan: Rent a cheap apartment until you have the above in place. Then keep your housing costs (mortgage+PMI+ insurance+taxes+utilities) at 25-28% of your TAKEHOME pay. If you debt then less. If you live in a HCOL are then 30-35%.
Make a list of needs and wants and prioritize them. Do NOT rush into home ownership.
You might also have a third option, renting a house. We did this for a few years before we bought, and we had to do the lawn maintenance and gardening and some small repairs on the house, so it gave us a taste of what home ownership would be like. (And meanwhile we were saving up for a DP).