Home Buying in 48390>Question Details

Candy, Home Buyer in 48390

we will only be living here two years max, rent or buy

Asked by Candy, 48390 Sat Jun 19, 2010

Help the community by answering this question:



Your question may not be as simple as presented........

There may be other factors that need to be considered including:

1. your personal family needs

2. schools

3. proximity to employment

4. purchase price

5. condition of the local RE market

Our recommendation is to work the numbers. On a a purchase: sale price, taxes, insurance, fees, maintenance, etc. and what you will be able to recover when you sell it. Compare this information with the cost to rent for two years and not have the worry of whether or not you can sell it.
0 votes Thank Flag Link Sun Jun 20, 2010
Remember the cost of selling at the end is going to run 7% to 8%. Then you have to consider the fact that a home is not a liquid asset, it could take months to sell. If the property doesw not go up in value at least the cost of sale then you lose. If it appreciates in value at 4% per year you might break even. You were making mortgage payments during the two yeras. They could be higher than rent. You are responsible for home maintainance as an owner. The renter walks away on his schedule, has no downside risk, and calls the owner for maintainance.
I would rent.
Web Reference: http://www.landinnevada.com
0 votes Thank Flag Link Sat Jun 19, 2010
Below are 2 ways to help you look at this question.

Does it make more economic sense to rent or to buy? Using your numbers find out below.
Why renting at a higher monthly cost than buying could be the best choice. A very different way to look at things below.

The real problem is selling costs. Add in closing costs you pay to buy a house, realtor fees to sell the house and it is easy to see how short term buying does not make any economic sense. I saw one professional say between the 2 you will end up paying about 12% of the purchase price in lost fees.

The exception to buying short term would be if house prices rose dramatically in a short time. This is not anticipated in most areas. I would seriously doubt that buying would make sense for you. Perhaps if you bought a real fixer upper and did tons of work it might pay you or break even. But that is doing work to make money not just buying and reselling.
0 votes Thank Flag Link Sat Jun 19, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer