Mb, Home Buyer in philly

I am a recent grad starting work in Upper Marlboro next month. I have 10k in the bank. Should I rent or?

Asked by Mb, philly Mon Apr 28, 2008

purchase a one bedroom?

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Answers

9
Ah! I hate to break this to you but asking such questions on a real estate website is not the right way to go about making your decision. As you can tell from the realtor responses - buy, buy, buy is all you will hear. Low interest rates and market being the lowest. Needless to say its all bull.

Having said all this Mansur's answer is pretty good and he makes a strong case for renting.

Rent . Its not that difficult . In this market you are not "throwing away money" . Save at least 20% of home value you wish to purchase. Put 10% down and save the other 10% for the "blue " days.
2 votes Thank Flag Link Mon Apr 28, 2008
MB,

Only you can really answer this question. In other words, the answer will be driven primarily by your lifestyle choice and career/industry requirements.

For example, if you can assure yourself that your new employment situation is such that you will not be faced with having to relocate for 4 years or more, then buying would be a sensible choice. However, if your industry requires frequent moving, at this stage in your career, my advice would be to rent. If the market erodes slightly more over the next year and you own, then you would be faced with having to absorb a potential loss if a relocation is required.

Like I said, only you can answer your question with the information you've provided.

Best of luck to you!
Web Reference: http://home-sweet-home.us
1 vote Thank Flag Link Mon Apr 28, 2008
Well you have been given some very good advice , I have been an agent a long time in this area. My advise is to BUY which is why it is called a buyers market. yes , you should get established . But when the market starts to turn and it will be slow the rates will also turn and I would be willing to bet they will go up. I only wish I had figured out a way to buy in a down market when I was younger ..Good luck
0 votes Thank Flag Link Wed Jul 9, 2008
Congratulations on your new job! I think the answer to your question can be found in research. Why not look at some homes in the area and get a feel for the market? There are some great deals to be found here in Southern Maryland, an easy drive to Upper Marlboro. Speak with a lender to see where you actually stand in the financing department. There's no obligation and the advice is free. In the meantime if you're unfamiliar with the area you may want to consider a short term rental while you settle in to your new job. Good luck!
0 votes Thank Flag Link Wed May 14, 2008
There are some good rent vs buy programs you can google to plug in the numbers to obtain a financial outcome base on several factors related to your income, house purchase and tax rate and/or breaks. Also, to save money on mortgage payments if that is what you choose try to obtain a mortgage product with no private mortgage insurance (this alone can save you anywhere up to several hundred dollars per month on your monthly payment. The state of Maryland has some very attractive first time home buyer programs and grants available that can save you money in down payments and monthly payments.
Web Reference: http://www.calvinhol.com
0 votes Thank Flag Link Wed May 14, 2008
Definitely, buy. But see if you can do better than a one-bedroom. You want to consider resale, you're probably going to be interested in moving up in a few years. If you know someone in the area, get a referral for a good buyer's agent, and let them help you hunt down one of those good deals.
0 votes Thank Flag Link Mon Apr 28, 2008
I definitely agree with Bill and Lewis. With home prices being the lowest they've been in the past several years if you are in position to buy this is the perfect time to do so. If you are looking in Upper Marlboro and surrounding areas you should with out a doubt be able to find a good deal.
0 votes Thank Flag Link Mon Apr 28, 2008
With the hot deals that are available, definately BUY! You will start a life long owners relationship, and property values will continue to climb now and in the near future! Great tax benefits for ownership, no one will pay you anything for a stack of rent receipts - with the new FHA guidelines you can buy with little down (3% or less) and get a fixed rate mortgage in the very low 6% range (I was quoted 5.875 a few days ago)!
Best buys seem to be in Waldorf, just a few miles SW of Upper Marlboro, but good buys in that area too!
Good Luck!

Bill Wootan
Web Reference: http://www.billwootan.com
0 votes Thank Flag Link Mon Apr 28, 2008
If you have good credit and qualify for a mortgage with little down, you should really look into purchasing a house. This may be the best opportunity to purchase at the bottom of the market with interest rates still low you will come by for years.
Web Reference: http://www.openmortgage.com
0 votes Thank Flag Link Mon Apr 28, 2008
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