Igor, Home Buyer in Columbia, MD

Buy or rent? Need more space for infant/relative;Plan to live for 2yrs;eems like a possible time to make money

Asked by Igor, Columbia, MD Sun Sep 30, 2007

We plan to move to area close to DC but not inside DC, for 2-2.5 yrs. We need more space for our infant and relative taking care of him. Rent vs buy? Good time to buy house now (seems like) yet the slump in sales and price drop are predicted to continue for long time. Do you recommend buying of renting? Seems like good time to make some money (1st time homebuyers); owever the tables may turn and we may end up with 20-30-50K loss we can't afford

Help the community by answering this question:

Answers

4
Igor,
Naturally realtors are going to tell you to buy. There is that $8000 credit people want. Go to the REAL financial people or watch their tv programs who will ALL tell you that if you plan on staying in your home 5 years or more, then you should buy. If you plan on staying LESS than 5 years, then you rent. I am not going to send my address to get you as a customer! Go to Suze Ormon, Howard Clark, and Dave Ramsey. They have been in this business for many years. They have websites. None will steer you wrong. I know moving with taking care of a relative and a baby is hard to move, but if you aren't going to stay, don't get stuck with a house with what it needs and then worry how are you going to sale it. This is no time to think of investment. Many realtors and known "flippers" can't get out of many homes they bought with the price they put into them. They rent these houses out at a high price where they know people work for the federal government (military bases and such) and college students who share the price of a $1000-3000 rental. There are more houses going to foreclosures: those who refinanced and then lost jobs or can't afford the new mortgage and the other houses coming to foreclosure from ARM's re-setting. I just seen you wrote this Sept. 30, 2007. I hope you didn't buy!
0 votes Thank Flag Link Sun Nov 22, 2009
There is always uncertainty in Real Estate. No one has a crystal ball, but right now you have a much larger inventory of home for sale, and owners willing to negotiate than what's been seen for sometime. Evaluate your situation, and consult a good Realtor. I have some connections in the area, that will provide you forecasts, and trends. It's not a crystal ball, but it will be better than just a guess.

Chris
0 votes Thank Flag Link Sun Sep 30, 2007
If you are willing to put some sweat equity in to a property that needs a new bathroom and kitchen, go for it and make an offer....look at Maryland. For that short space of time, do 0 and 0, ie no points, no origination...with the revised lower interest rates as of last week, and the continued growth around DC, buy if you can.
Web Reference: http://www.iansellsnola.com
0 votes Thank Flag Link Sun Sep 30, 2007
I would suggest buying. The market has been on the slide for some time now and no one knows where the turning point is. However, interest rates are at the lowest rate they have been in years. Rent near DC surely isn't cheap. Figure the amount of rent that you would have to pay over the 2 or 2 1/2 year period and consider that a total loss because you will not be building equity in anything during that time.

Even if the market continues to slide, you will have had the tax advantage of home ownership during that 2 year period. You can then use any equity you have in your DC property and purchase a home in another location that has gone through the same economic conditions.
0 votes Thank Flag Link Sun Sep 30, 2007
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