Salman,
Never mind the tax benefits of owning a home, although they are significant. Over 3.5 years (42 months) you will pay a landlord $46,200 in rent under scenario B. If your "loss" in selling a home is less than $46,200 you win. You are paying yourself rather than a landlord.

Many homes hold there value in the Ft. Wayne area. This is a difficult and slow market here as well as most of the US. Depending on how much you put down, it may be best to rent for that short period. The market time depends on rates, home condition, jobs , economy and many other factors. I hope this is helpful. Feel free to call me anytime if I can further assist you.
Dan Trenary
C-21 Bradley http://www.dantsells.com
260-479-3972 24 HR.

Salman - I have a 3 BR 1350 sq ft ranch with a large yard, ceramic, stainless steel appliances, and all the upgrades that is available for rent. Any interests?

Great question!
While you have been given some advice I don't know why a real estate agent would be the one to ask about closing cost.?
I just had this question asked to me on Wednesday about the Indianapolis market. While you can debate yourself to confusion on this one in the end it is a toss up. I will just point out that it is important to note that while Indiana has not had the wild rise in real estate prices it also has not taken the big dive.
I am a mortgage guy. What I have noticed is that houses are selling (not getting into the foreclosure thing which is hard for the consumer to purchase) for near asking price.
If your are 100% sure that you will move in 3 1/2 years I would lean towards rent. Now if the 3 1/2 is not a "hard" number or you find a home you just can't live without buy it. I never recommend (except investors) any of my clients to buy a home for profit. Buy it because you like it and it serves your needs.

If you need to see any numbers feel free to email me at tgrego@getmyratequote.com or call at 317-714-8080. I guarantee all of my closing costs and rates. In fact if you get a better deal you can get $500

Good luck with your search
Tony Grego - Your place with great rates

Salman - I have lived in Fort Wayne for 25 years and recently homes have been moving pretty quickly at that price point. I would suggest that if you pick a home in a desireable neighborhood and get a good deal (which they are out there) you would be fine to sell the home in 3.5 years. You could even consider something in the 150 range and get a really nice home in town with a less risk. If you decide to rent I know landlords that have very nice 3 BR Ranches for the 1100 you are looking at too.

If you have questions and want some honest answers please let me know.

Thank You

Adam Ross

Salman,
I lived in Fort Wayne for over 5 years. I am very familiar with the area and different neighborhoods there. Allot depends on where this 250K house is located. I would say that with our normal appreciation, you may not lose any money after 3.5 years, but you may not make a big profit either, especially when you figure in the cost of carrying the house during the selling process, commissions, any seller concessions and so on. Also remember that in this price point you are not only going to be competing for buyers with other previously owned homes, but also many brand new homes.

Fort Wayne is a great small city and has many charming areas and neighborhoods, I think it will continue to grow and that is a good thing for your home owning plans!

I would be happy to discuss this with you further and even help to locate a great agent there to help you with the process. Please give me a call if I can help.

Jody Jones
Century 21 Landmark Realty
Elkhart, IN

There are tax benefits to owning, however, 3.5 years in the current state of the US real estate market may not be enough to be able to relist at the end of that time and not have to 'bring money to the table' to accomplish the closing. Ask a local Realtor what the estimated closing costs are on a home sale in that price range because you could be in a situation where there is no gain. If there is a drop in value, then of course, you are behind.
Also, calculate the benefit in your tax write off to see how that figures in. Contact a local accountant for help with that.
Having said all of the above, I would always favor owing over renting for a variety of lifestyle reasons - stable housing costs, security, neighborhood choice and the ability to make improvements that you want but a landlord would never allow (or you would never want to pay for in a rental).
Good luck to you!
Maureen of That Sister Team,
Meadow Vista, CA