Buying A Home
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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.
newbie questions about buying and selling
hi, i've never posted here before... so hi! my dh and i are buying our first house. we're looking at a townhome with GREAT future rental prospects. i have some (stupid) questions about what happens when we decide to move out...
1. if we decide to rent it out, do we need another complete 20% down payment?
2. if we decide to sell it, how much do i need to sell it for to recoup the current down payment? ex: if we buy this house for 300,000, should i plan sell it for at least 300,000 to pay off the mortgage and recoup the downpayment we're paying now?
thanks in advance! i'm an idiot about this stuff.
Re: newbie questions about buying and selling
1. Read Home Buying for Dummies.
2. If you rent it out down the road, will you hire a property managment company to come at 3am and fix a problem? Or, will you and your DH do that?
3. If you rented it out in the future, how far away from the property would you be living? It's hard to maintain rentals if you live far away from them.
4. It's doubtful you will recoup all of what you buy it for now within the next 10 years at least. Pretty much all sellers are losing money on RE sales. A few break even. The housing market, while it has had some upticks in some areas, is pretty depressed still and will continue to be since more foreclosures are constantly hitting the market.
5. Many posters here wish they had purchased single family homes instead of townhomes as their first places. They get "stuck" in them - unable to sell and have growing families that quickly become tight in the lesser square footage.
6. If you buy a home you should paln on being in it for 10 years+. Plan accordingly.
7. With any home purchase you need a DP, plus your 6+ month emergency fund. Don't forget the added costs of maintenance, utilities, homeowner's insurance, and odds and ends like more supplies, tools, yard care items, etc.
The price of a home is determined by the circumstances of the time of sale. Who knows what the future brings? Right now it takes about 10 years just to recoup your bying and selling costs (yes, there are costs to sell your home).
Do NOT look at your home as a means to make money , instead, consider it a place to live.
And to answer one of your questions, if you buy this TH and rent it later, YES you will need another downpayment for whatever you buy. You will also have to have income to qualify completely for both mortgages.
PPs are correct. It will take a long time to recoup. Don't forget you will have to factor in any real estate commissions (6-7%) as well as closing costs.