Home Buying in Greenwich>Question Details

Patricia Bee, Renter in Greenwich, CT

My husband and I are expatriates and renting a house at the moment in Greenwich.If our stay extend should we buy a property or keep renting?

Asked by Patricia Bee, Greenwich, CT Mon Oct 17, 2011

Our concern is due to the fact that how easy would it be to resell that property, and if buying is still a good investment.

Help the community by answering this question:

Answers

11
Richard Breglia’s answer
BEST ANSWER
Patricia,

I agree with many of the posts below. If you plan on staying for a few more years than now is a great time to buy. Interest rates are at record lows and home prices have come down considerably since 2005. It's a buyers market for sure with endless possibilities. Another major advantage of buying these posts have failed to mention are the tax benefits associated with owning your own home. You are likely covering your lanlords principal, interest, and taxes for as long as you rent. If you purchase you get to deduct mortgage interest from your taxes in addition to paying down your loan and building equity. I would consult with an accountant and see what the financial rewrads of owning vs renting are and make your final decision based on that.. ! If you have any other questions or if I can be of assistance in anyway please don't hesitate to contact me.

regards,

Richard Breglia

Team Advantage
Coldwell Banker Residential Brokerage (Greenwich CT)
1 vote Thank Flag Link Mon Oct 17, 2011
Hello Patricia,
It's a good idea to purchase if you plan on staying in the home for at least 3-5 years so that you will realize a gain in value once you resell.

Mortgage interest rates are at historic lows, prices are lower than they have been the past few years, and there is a lot of inventory which makes purchasing now very desirable. But if you only plan on staying in the home for a year or so and then sell then you may not have enough time for the property to appreciate in value.

Hope this helps.

Good luck to you!

Laura Feghali
Prudential Connecticut Realty
1 vote Thank Flag Link Mon Oct 17, 2011
Hi Patricia,

Good question, to start, I pasted a web reference for a rent vs buy calculator that can help you in your decision. There are many factors to consider, such as are you able to purchase a distressed property that needs work or do you need something that is move in ready? How much space do you need? A condo or a single family home? How long will you be extending your stay? When you leave what you do with your property if you purchase? Sell it or rent it out as an investment? I tell all my clients that real estate is almost always a long term investment unless you are an experienced re-seller or real estate flipper, and by long term I mean 8-10 years. Now is a great time to buy, but again it's best to buy now if you are in it for a long term investment. I have more information on my website http://www.investmentpropertynfc.com and facebook https://www.facebook.com/#!/pages/Northern-Fairfield-County-…
0 votes Thank Flag Link Tue Nov 22, 2011
If you plan on staying for a few more years than now is a great time to buy. Interest rates are at record lows and home prices have come down considerably since 2005. It's a buyers market for sure with endless possibilities. There also tax benefits associated with owning your own home.. When you are renting If you purchase you get to deduct mortgage interest from your taxes and building equity. I would consult with an accountant to see your benefits. Lets also not forget that home ownership...gives you the pride of it being Your Home...with no one having a say in how you live your life and there is no fear that you could be asked to leave ..Please give me a call and i would love to give you a tour of the town and homes that might suit your life style...
Lynne Carriello
203-561-2811
Web Reference: http://lynne-carriello.com
0 votes Thank Flag Link Mon Oct 31, 2011
Patricia,
I think we have spoken before. The answer to your question is simple: if you plan to stay for a year or more, it makes a great deal of sense to buy a home that needs a "little" refreshening. Most importantly, any property you purchase should be in a "high buy" area. Greenwich is a large town and there are many areas that are beautiful, but not "high buy" areas.
Give me a call and we can do a thoughtful tour of the areas that might work best to suit your budget and your goals.
Regards,
Susan Detchon Anderson
203 536 7116
0 votes Thank Flag Link Fri Oct 21, 2011
Patricia:

It depends on how long your extended is? If it is only short-term (1 year), I would say no. If you planning to extend your stay up to 5 years, then I would say yes...there has never been and may never be a better time to buy real estate in our lifetime, that's how depressed the residential real estate market is...but, that simply bodes well for buyers, not sellers.

The future is too uncertain at this point. No one really knows when the residential real estate market will rebound...but one thing is for sure, we have not seen such significant percentage declines in real estate values in our lifetime...this is the worst real estate market since the Great Depression.

So, go slow and don't make a move until you are certain how long you will be here.

George Bakes.
george.bakes@cbmoves.com
Web Reference: http://www.georgebakes.net
0 votes Thank Flag Link Fri Oct 21, 2011
Patricia,

A major factor for you to consider is the exchange rate. Some countries such as Switzerland have extraordinarily strong currencies and their buying power is magnified right now. If you are going to be using savings denominated in your home country's currency you may have an additional reason to buy beyond low US interest rates and houses prices that are down from their peak. On the sale side you have the same risk, since purchasing a house is an increase in your U.S. dollar denominated assets. If the dollar strengthens relative to your home currency you could make an excellent return.

I'm posting the lastest Greenwich real estate marketing stats to my blog, GreenwichStreets.com, later today. Basically in Greenwich we have a very busy market under $1.5MM, a good market up to $3MM and a slow market above $5MM.

Mark
Web Reference: http://greenwichstreets.com
0 votes Thank Flag Link Wed Oct 19, 2011
The answer usually depends on how long you are planning on staying in the home. Crunch some numbers. How much are you spending a year in rent? Consider that money right out the window. If you can buy for what you are renting or less, with the tax benefits, and if you are able to put enough money down to be able to absorb another 5-10% decline in value, then probably yes.

It is IMPERATIVE though, for you to hire a Realtor that is competent, and will negotiate fiercely on your behalf, and not let you overpay for a property just to get their commission check.
0 votes Thank Flag Link Tue Oct 18, 2011
Patricia,
Your concern about resale is understandable given the current amount of supply of homes on the market and DOM (days on market) in Greenwich. Certain price ranges sell more quickly than others. I am happy to provide you with a DOM report in your target price range. I would also recommend speaking with a mortgage expert. Ask for a rent or buy comparison.
Feel free to call me to discuss all of your options.
Hannelore Kaplan
CHAIRMAN'S ELITE TOP 10 CT AGENT
C-914-450-3880
hannelore.kaplan@raveis.com
0 votes Thank Flag Link Mon Oct 17, 2011
There are many factors that will effect your decision,employment status,family status,financial status to name just a few.I advise all my clients that as a rule of thumb given today's Real Estate market they should plan on staying in their home at least 5 to 7 years to break even. The reason being with conveyance tax,attorney's fees, Real Estate fees, etc. 5 to 7 years is what it would take for the home to appreciate to cover these costs.
0 votes Thank Flag Link Mon Oct 17, 2011
Patricia:

With mortgage rates at all time lows and housing prices in Fairfield County averaging 25 - 30% down in the last three years, now is a great time to buy if you are planning on staying in the area for at least three more years. I can be reached at Deirdre McGovern 203-554-0897 or mgmcg@aol.com if you would like to come into my office to take a look at housing options.

Thanks
0 votes Thank Flag Link Mon Oct 17, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer