We recently moved to Newport News due to profession. I am not able to decide I need to buy a home now or wait

Asked by HomeBuyer, Newport News, VA Thu Oct 25, 2007

out? I am in a one year lease with my apt ($1200 month) which will end next June. We will be here for 2 more years after that. Will I at least break even when I sell the house in 2010 July. I know that no one can really predict how the market goes, but the thought that my rent could be used to build equity just doesn't leave my head.

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Rosalind Boy…, Both Buyer And Seller, Chesapeake, VA
Thu Oct 25, 2007
BEST ANSWER
Our average/median sales prices have continued to go up in the Hampton Roads area (even with all the horror stories on TV). When councelling a buyer I usually hope that they are able to stay in the home for more than 2 years just for that reason that we cannot predict the market. However with the strong military presence in our area the housing market is still strong - there are always buyers and sellers. There are some good deals out there and especially if you are willing to buy a fixer upper, you *should* be able to break even.
0 votes
Sean Hyland, Agent, Williamsburg, VA
Thu Apr 12, 2012
I would recommend making the home purchase (as you know what all the advantages are to home ownership) regardless of when you are moving. Why not consider turning this into an investment property and renting it out? You can always decide to sell later when you are comfortable with the sales price that you could get. Many home owners stress about what the current 'market' is doing. Renting the house out until the market is more comfortable for you has to be a consideration. Everyone must be flexible, including buyers and sellers. There are so many options.
1 vote
Matthew, , Newport News, VA
Thu Jun 5, 2008
I am selling for what the home is worth. This isnt 2005... I am selling now.
1 vote
Matthew, , Newport News, VA
Tue Jun 3, 2008
You should still buy. With the military around this area prices are always increasing and you could sell it in just a couple years and make a small profit. I've been in mine only 5 years and its assessed value has nearly doubled. There is a home in my neighborhood for sale for $199,000... it's 4 Wedgwood Drive North.
1 vote
Beatriz Jara, Home Buyer, Newport News, VA
Mon Nov 5, 2012
I too struggled with that question, but I felt like I was wasting money on something that would never belong to me. Also it is much cheaper to own now a days than it is to rent. Something to consider. :)
0 votes
Carol Davanay, Agent, Newport News, VA
Thu Feb 25, 2010
If you can't commit to staying in a new home at least 4 years, you may be "upside down" when you need to sell. That means that you will not be able to pay off your home with the sale of your property and its proceeds. What you might look into doing is find a property that would also be a good rental property. Make sure that rents in the area where you buy would be enough to cover your monthly mortgage (including taxes, insurance and home owner association dues). While you may break even or even need to supplement your payment in addition to the rent, you will benefit from the depreciation of the property and you will be able to deduct management fees and repairs. Talk with your tax advisor for more complete information. Owning rental properties are not for everyone but it could be an option for you. Please call me for more information. Carol Davanay, Liz Moore and Associates, caroldavanay@lizmoore.com. 757-870-7349.
Web Reference:  http://www.lizmoore.com
0 votes
Lashand Cole…, , Newport News, VA
Thu Nov 6, 2008
It is challenging to determine due to the way the market fluctuates. I always suggest purchasing a home because it is an awesome investment. If you were to calculate $1200 multiplied by 12 the total rents for that year is $14,400 . It would be awesome to have that amount contribute to the equity of your home. I wish you well on your home search.
0 votes
NonRealtor, , 23456
Tue Jun 3, 2008
Matthew,
This is your listing, or you're a homowner trying to make 100K profit. You should have sold in 2005. The bubble is popping.
0 votes
Hi, , Virginia
Mon Mar 10, 2008
I live in the area, and renting is the way to go right now.
Here is a house in Newport News listed on trulia
http://www.trulia.com/property/1052540913-2282-Kings-Creek-L…
If you bought this house in 2003 it was $129,000.
It is now listed for $239,000.
If you buy it for $239,000
Will you make profit like this ($110,000) in a declining US housing market by 2010?
I don't think so.
That building up equity thing in your head is for people that intend to live in the house until its paid off (usually 30 years) or for people trying to make a profit (flippers, and they're not doing so well).
A house the size of your $1200 / month apartment will cost at least $2000 / month.
0 votes
Blatt + Cuti…, Agent, Carmel, CA
Thu Oct 25, 2007
Having been in real estate since 1986 and witnessed several real estate cycles. I am a firm believer in home ownership. Especially in California! In my opinion you can really never go wrong owning real estate! Angelica Blatt, Keller Williams Realty.
0 votes
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