If I potentially might move in 3 years should I still buy a home?

Asked by Tanners34, Providence Plantation, Charlotte, NC Tue Aug 10, 2010

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11
John Siddons…, Agent, Charlotte, NC
Mon Jun 27, 2011
This all depends on a case by case basis. Will you have the income/funds to support this mortgage if you do end up moving?
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Anna M Brocco, Agent, Williston Park, NY
Wed Aug 11, 2010
Much will depend on your finances, wants, needs, lifestyle--It’s all about costs and lifestyle. Costs—financing v. moving-in, mortgage v. rent, repairs v. upkeep. Lifestyle—stability v. mobility, predictability v. flexibility, equity v. freedom from debt. It used to be all about equity. Now, there are other variables to consider in the balancing of the buy/rent equation.
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Erin Burns, Agent, Charlotte, NC
Wed Aug 11, 2010
I agree with the other answers that buying and moving in 3 years is risky...there are currently over 60 homes for sale in Providence Plantation (starting at $225K) and 4 for rent (priced between $2100-2400). The only way it may be worth it is if you are willing to rent your home (and your mortgage payment is obviously lower than the current rental price) in the case that you are unable to sell your home. Let me know if you have any further questions...erin@mytownhome.com
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Melissa Brown, Agent, Charlotte, NC
Wed Aug 11, 2010
I agree with others before me who have advised that buying and then selling in three years is very risky. I think you should sit down with a trusted lender and figure out your costs to buy, and then do the same thing with rent. Then do some more equations with what it cost you to sell the property down the road, including commissions, tax stamps (divide the sales price by $500), attorney fees and other closing costs. It would be very difficult to recoup your costs in just three years, unless the market experienced a big upswing, which few are predicting now.

Providence Plantation is a GREAT neighborhood, and even though values have dropped, it still is a very desirable neighborhood because of the quality homes, fantastic schools and convenient location.

If you are SURE that you will be moving in three years, I would probably advise you to rent, unless you found a spectacular deal, maybe a fixer upper that you improve with sweat equity.

Thanks for posing the question, and please call me at 704-654-9700 if you have more specific questions, or just want to discuss your options in more detail. Good luck!!!
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Robin Faison, Agent, Huntersville, NC
Wed Aug 11, 2010
Hey Tanner34,
First of all, it all depends on how you buy! If you buy a foreclosure, REO, estate sale, or a relocation property, then you may get a house that you could sell in 6 months!!!!!!! Interest rates are compelling right now- the lowest that in MAMY years. You may buy a house that you could rent and make money in the future. My advice is to work with a realtor who understands financing and construction because it is important to pick the right house and get the right contractors to evaluate any potential costs that you may incur. I do not suggest paying top dollar for a house unless you plan to stay in it for many years. What tax deductions exist for you if you continue renting?
Robin Faison, broker
Robin.Faison@gmail.com
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Lexie Longst…, Agent, Charlotte, NC
Wed Aug 11, 2010
I don't think any financial advisor would advise you to buy a house if you think you will have to sell it in 3 years. Especially in this market. However with these prices and interest rates you could be tempted. Think of it this way:
If you purchase a home for $300,000 and it appreciates just 1% per year (which would be an average amount) after 3 years, you would loose $9,000 if you had to sell it. The cost to sell a home is minimum 6% in commissions, (unless you do it yourself) plus all the fix up cost to get a home in show condition, possibly staging, etc. So let's just use 6% ... for fun.
Then you will need to look at the numbers of renting vs. buying and your income tax savings, and calculate the return on investment you would be making (or loosing) on your down payment money if you put it somewhere else.
Then you need to look at the appreciation in Providence Plantation and the inventory and it would be good if your agent could calculate the future.... or at least speculate based on current absorption rates.
Then predict the worst case scenario: you have to move across the country, rent the house out, and keep making payments for several years until the home appreciates enough to cover all the cost to sell. Calculate what you would get in rent minus expenses for upkeep, management, etc. If you where buying a rental house for investment... is this the house you would buy?
And then you will have your answer!
Your agent should be able to help you determine if the price you are paying and all the above if you could get out whole... or how much you would stand to loose or gain in 3 years.
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My NC Homes…, Agent, Chapel Hill, NC
Wed Aug 11, 2010
If you were certain you were moving in three years it probably would not make a lot of sense to buy a home, however if you may be there longer it may make sense. You need to figure out your plans, do your diligence on the area you're living in and decide.
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dave, Agent, Charlotte, NC
Wed Aug 11, 2010
The answr to your question comes with some variables that can not be predicted. One thing we know for sure is that home prices have dropped in record dramatic fashion in the past 2 years. What we do not knwo is what three years from now is going to bring. Some predict it will stabilize in the next 6 to 12 months and we will be on the rise. Others are saying two to four years to recovery. This can play a factor in your moving in three years. if we are in a stable good market then you can sell your home in a reasonable time frame. If we are in an unstable market like now it may take longer than you have to sell your home.

The other variable you have to consider si what wou,ld you be paying in rent versus a mortgage right now? Rates are at historic lows. It may be less expensive to buy a home right now. Even if you had to take less than fair market value at the time you need to sell you still will probably be able to sell for more than you can buy it for now.
Web Reference:  http://www.davedicecco.com
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Janet Nation,…, Agent, Baldwin, NY
Tue Aug 10, 2010
I wouldn't. Although we don't have a crystal ball and know for sure where the market will be three years from now, all indications suggest that the real estate market will still be sluggish for the next 2-4 years. So unless you are purchasing a ridiculous bargain with lots equity in the home, be careful.
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Jen Wetzel, Agent, Fort Mill, SC
Tue Aug 10, 2010
It could not be a better time to buy a home....in today's market, we are not only seeing prices as they were in the early 2000s, but some of the lowest interest rates in history. Just sold a home in Providence Plantation and my buyers got a great deal!! I do not think it would be a bad investment.

Should you want to receive listings from this community or others in the area, I would be happy to send them your way. I would love the opportunity to work with you!

Jen Mildenberger
704-996-8195
jen1@kw.com
http://www.WithJenYouWin.com
0 votes
Matthew Trin…, Agent, Charlotte, NC
Tue Aug 10, 2010
First, of course, no one can predict what the real estate market will do in 3 years.

Having said that, there are some other variables to consider. Are you okay with being a landlord if necessary and renting out the residence in 3 years? Are you okay with buying something that is a particularly good deal, even if it is not the dream home you might pick for yourself? Interest rates are so low right now, that might put you over the edge to buy now.

Providence Plantation is definitely a great neighborhood.

Best Wishes,
Matthew Tringali
Owner of Group 15 Real Estate
704.517.3906
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