Market Conditions in Duluth>Question Details

Kathleen, Home Buyer in Duluth, GA

I don't know if I should rent or buy.

Asked by Kathleen, Duluth, GA Sat Jul 14, 2012

I can afford to buy a $135,000 home outright, but I am wanting to move to western NC in the near future. The problem is, I don't know exactly when the "near future" is. It can be less than a year or as long as three years. I know I can get a great deal buying a home, but I'm afraid I won't be able to sell it when I am ready to move. I also would hate to "waste" money on rent if I can buy a home and make some money selling it for more than I paid.

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Hi Kathleen,

If your time frame is three years or less, or really five years or less, I would strongly consider renting vs buying. I see no data that tells me prices will increase significantly in the next 5 years but I see plenty of data that tells me prices could stay flat, or even decline further in the next 5 years.

If you know you are going to be here at least 2 years I would recommend trying to lock in a 2 year lease at a fixed rental rate. Rental prices in my area have risen 5 to 15% in the last year and inventory is lower than at this time last year. Chances are strong that they will continue to rise over the next year or so.

Deryk Harper
Key Locations Property Management LLC
1 vote Thank Flag Link Sat Jul 14, 2012
If it's not a clear decision for you, then you should likely rent. The last thing you want to do is resent a home 90 days after you have purchased. Breaking a lease if your find the right place to buy is a lot cheaper in many cases then selling a property soon after buying when you realize you need to make a new decision.

One thing to consider is if the home has potential to increase in value and/or its potential as a lease property. If either or both seem to be good options, then buying may be a great choice!!

Hope this helps and good luck!!
1 vote Thank Flag Link Sat Jul 14, 2012
The problem is, I don't know exactly when the "near future" is.
You came to the right place . I see a house for $90,000 that you won't be able to resist. The owner is desperate and he will even do owner financing. You will love the house it was just how you imagined it.

Your neighbor who is renting sorry to tell you she got the short end of the stick ... You know her landlord ... well he did not pay for his mortgage for two years now they finally foreclosed on him. To think that he was collecting rent while he was in the Bahamas? Well you friend needs to move and soon like tomorrow. Just in case she needs a good mover ask Mr Obama he has a long list of movers.
He has one too called MOVE FORWARD by two Brother's and a truck. I think you should buy I think moving sucks.
0 votes Thank Flag Link Tue Jul 17, 2012
Kathleen, in today's economy Cash is King. You might consider buying in NC sooner than later if you find a deal there and want to lock-in a low price. I would not buy here for such a short term time frame.
0 votes Thank Flag Link Mon Jul 16, 2012
Deryk is right on. It's highly unlikley you will make money, you'll probably lose in fact when considering the commissions, moving costs, loan costs and work you'll do moving in and out. And that of course, assumes that you are able to sell when it's time.

Lock up a two year lease as he said - good advice.

0 votes Thank Flag Link Sun Jul 15, 2012
If you don't know, rent. Less potential downside. Good Luck!

Michael Hammond
0 votes Thank Flag Link Sat Jul 14, 2012
With a 1-3 year time horizon, it generally makes sense to rent instead of buy. The real estate transaction costs can be an issue for such a short time frame.

You'll have to weigh the costs between renting and buying. Some areas, it's just so much cheaper to buy that it's worth taking the savings each month to bet on the transaction costs.

And, if you're looking to sell, you can always sell if you price your home right for the market.

That said, I just helped one of my clients sell a home quickly due to unexpected job relocation. They had only bought the home with me 7 month earlier. Fortunately, the area we bought was so hot that they're able to walk away with a 10% net gain after all selling expenses.
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0 votes Thank Flag Link Sat Jul 14, 2012
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