Would you buy...

photoelise · May 2013

A home if you knew you would only be there for 2 years?

My husband and I are relocating to a new area and we are having some disagreement about renting vs buying. We will only be in the area for 2 years ( it is not an option to stay longer), and we could buy a home with a mortgage( including taxes and insurance) for $300 a month less than renting a similar home.

So would you spend the money upfront for a mortgage and have lower payments but risk not being able to sell easily in 2 years. Or would you rent for more money but have the peace of mind knowing that when you had to move again you could do so fairly easily?

Tia!

Apollo11235 · May 2013

We thought about this recently, when we were planning to move in 3 years, and I found a calculator online that was helpful - something like this one: http://www.smartmoney.com/calculator/real-estate/should-i-rent-or-buy-a-house-1304481100859/

We ended up deciding it wasn't worth it for us, but I'm sure it depends a lot on where you live and what houses you're looking at. Personally, I wouldn't do it unless: 1) you stand to save a significant amount of money by buying, and 2) you know you'll be able to pay the mortgage for a while after you move out in case you end up having trouble selling it.

bparkhur · May 2013

No, because you never know what will happen in the housing market (just look what the last six years have taught us). What do you plan to do with the house after two years? Sell it? Keep it as a rental? If you sell it for the exact same price you buy it for, you're still out thousands in realtor fees. If anything breaks, there goes your budget. There is NO way I would do it.

SallyAnneS · May 2013

bparkhur:
No, because you never know what will happen in the housing market (just look what the last six years have taught us). What do you plan to do with the house after two years? Sell it? Keep it as a rental? If you sell it for the exact same price you buy it for, you're still out thousands in realtor fees. If anything breaks, there goes your budget. There is NO way I would do it.

All of this. You need to factorin realtor fees, closing costs, house maintance etc. Also what if it doesn't sell. Oh and breaking your mortgage if you go with a fixed term. Nope, no way I would buy.

dancingphalanges · May 2013

I would not, for just about the same reasons as pp have said. Sure, you are saving the 300 a month, but fees associated with owning and selling a house will quickly take that away. Also, I would rather not risk not being able to sell the house and leave.

CowgirlK39 · May 2013

Funny you ask this, I was just reading some articles about knowing when it's right to buy a home. One of they key tips was NOT to buy if you do not plan to be there for less than 10 years, for all the reasons the PPs mentioned. You never know if its going to sell when it comes time to move.

photoelise · May 2013

Thanks for the feedback. It's pretty much what I was feeling, but I needed someone to say it, too .

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