Rent or buy?

Discussion in 'Teacher Time Out' started by myKroom, May 25, 2014.

  1. dgpiaffeteach

    dgpiaffeteach Aficionado

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    May 30, 2014

    When I go to sell my house, we anticipate listing it for at least $50k more than I bought it for. We are doing some updating and adding a second bath. Given the current market, we could easily get that much more. To me, that's one very good reason to buy.

    I also love not sharing walls and being able to do what I want.
     
  2. Caesar753

    Caesar753 Multitudinous

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    May 30, 2014

    One benefit to renting is that you aren't subject to the changes in the market.

    My best friend purchased a house in our city about 7 years ago for just over $250k. Within one year, her house had dropped in value to the point that it was appraised at $110. The house next door--identical floor plan, identical upgrades--sold for $70k. My friend ended up choosing to do a strategic default, knowing that it would never get back up to anywhere close to what she had paid for it (and what she owed on her mortgage). Her credit took a pretty big hit because of that. A renter wouldn't ever have to go through that.
     
  3. TeacherNY

    TeacherNY Maven

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    May 30, 2014

    If you're buying you also have to be careful of HOA fees. I know someone who bought a townhouse and the price was good but the HOA fees were pretty steep. That is money you will never get back when you sell. There are also communities with regular houses where you need to pay a HOA fee. I looked into it and fee added to the generally affordable mortgage payment made it extremely unappealing.
    I admit that most of my paycheck goes to my mortgage/house upkeep. I don't have extra money at the end of the month for "stuff". I only can afford a short vacation once a year. The fact that my house is mine and I can paint it purple if I wanted to (although my husband won't let me), I can plant whatever I want, have as many pets as I want, etc. makes it worth owning. Everyone is different and at different stages of their lives. Just because you rent for a few years doesn't mean you can't own in the future if you manage your money well. Save, save, save. For some people saving for a down payment means more to them than going on 3 vacations a year, getting their hair/nails done all the time, eating out, or whatever you like to do with your "extra" money. It can be done but nobody says it has to be done right now. I wish the OP well in this adventure!
     

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