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Save & Rent or BUY then sell?
Starting in March I will be done with school (which I have been paying out of pocket). My plan is to take at least 1 year to save like crazy and see what I can come up with. My boyfriend and I have been together for 3.5 years and plan to get married in the next year or so. We both have not debt and both have good credit. I should also mention we will have a very small wedding and limit the expenses. I should also add that we have been renting for a year and pay $850/month.
I grew up in a small area about 5 miles from a tiny town. I have no desire to live in the city permanently. I would love to have a few acres to have my horses with me and my dogs can have plenty of ground to run on. I also wouldn't mind having more land and using it as CRP or renting it out.
My boyfriend is pushing 30 and feeling the itch to have kids. We both agree though that we don't want to be in an apartment with a baby.
So my question is should we save for a good year to 2 years then buy property and build or buy propery that already has a house. OR Choose to live in town or in a small town and buy a house and live there for a few years then do the land and house outside the city thing? If someone is looking at buying a house do they suggest they stay there for so many years before trying to sell?
Thanks!
Re: Save & Rent or BUY then sell?
I have been in the same situation as you are encountering.
We decided to buy a house instead of get homeland houses redecorated though being with less savings. A new house bought in a city represents more rights you have obtained for your successors, like high school and living standard.
Moreover,there must be much value added from the house you bought in recent years.
SO instead of renting,get to buy one,wish good luck.
You really need to crunch the numbers. Generally small towns do not see a lot of ome value appreciation. And with the market as it is and will likely stay for at least a few more years, that's probably even more true than usual. So if your in town home isn't going to appreciate much in value, you will ultimately lose money by purchasing an in town home that you plan to sell in only a few years. You will lose money with upfront costs that you will likely pay, like closing costs, buying a town sized mower (that you'll need to replace with a bigger model as soon as you have tons of space to keep trimmed), random home repairs that will need to be done to the in town home, buying furniture for that home that doesn't fit in the next home and needs replaced, and selling costs (realtor fees, assistance with buyer's closing costs, inspection repairs, etc.). And in return for loosing that money you will gain the headaches of home ownership. It's kinda a lose-lose situation. IMHO in this market it is smarter to be patient, save, and buy what you really want to live in for 20+ years. Starter homes just don't make a lot of sense right now.
BTW... we bought land (5 acres is all that we could afford in our county) with a lovely house on it in the country. We're planning on chickens and goats in the spring, but I'd have a whole menagerie of critters if my husband let me. And our dog loves the room to run. I love country life!
I always hate to tell people to rent, but that may be a good option if you only want to buy a house in town to only live there a few years.
In regards to buying a temp. house to live in for a few years:
Depending on what state you live in, there could be certain penalties with your loan if you resell too soon. In my state, you can resell your home after two years of obtaining it as your primary residence (assuming you obtained an FHA loan). There are also a lot of costs and sometimes headaches with purchasing a home. I would recommend you rent until you are ready to buy the home you truly want and will live in for years to come. You may also want to contact a local lender to see all of the technicalities.
Thanks for your responses!
Sounds like a good idea to wait! Plus I have moved multiply times myself and moving is annoying!
Thanks!