Should I buy or rent?

Enfuego · Jun 6, 2008

Since we're moving what do you think?

Look, I know the housing market is bad right now, for sellers that is, but what about buyers? Should I take a shot at buying house #2?

fhmesq44 · Jun 6, 2008

how long are you planning to stay in DC?

I would say to wait if for nothing else to figure out where you want to live. Personally, I don't know if prices will drop further or significantly further, but I also don't think you will be kicking yourself in the ass if you wait a year.

Enfuego · Jun 6, 2008

I'll be in D.C. 3-4 years and I get one paid move into the area so I don't want to move in a year when I'd have to do it myself.

We can afford up to $2,400 a month and if the wife worked much more. Prices will go up in 3-4 years I'm predicting and we could make a killing if we do it right.

Also, my rent/mortgage is paid. I essentially get paid to live in a home so I'd rather have someonelse pay my mortgage if you get my drift.

fhmesq44 · Jun 6, 2008

If that is the case, I would probably buy provided you can figure out where you would like to live. No idea what you can get for $2400/month though

Enfuego · Jun 6, 2008

fhmesq44 said:
If that is the case, I would probably buy provided you can figure out where you would like to live. No idea what you can get for $2400/month though

By the way, I get $2,400 no matter what my rent or mortgage is. If I buy and my mortgage is $1,700 I make $700 an extra a month.

fhmesq44 · Jun 6, 2008

Boss Hog said:
By the way, I get $2,400 no matter what my rent or mortgage is. If I buy and my mortgage is $1,700 I make $700 an extra a month.

I know little about housing prices in DC other than that it is fairly expensive. Based on what I know I pay and my understanding of prices, $2400 won't get you much once you factor in taxes. I imagine you will want to live in a nice suburban area with at least 4 BR/2BA, 2000 sf, $2400/month in an amortizing payment is a $400k mortgage (without factoring in taxes, if taxes are ~$6000/year, that reduces the mortgage to $325k). I don't think you can get much with a mortgage like that in the DC area. Having said that, a $2400/month subsidy is mighty nice.

buddyboy · Jun 6, 2008

depending on the market, the house you buy today will be worth about the same maybe a little less 3-4 years from now.

you get $2400 a month, BUY a house.

You get
1. difference in your allowance and your actual payment

2. all that priciple back when you sell

3. write off the interest on your taxes

you pay:

1. interest
2. prop tax
3. insurance

NO BRAINER

Enfuego · Jun 6, 2008

fhmesq44 said:
I know little about housing prices in DC other than that it is fairly expensive. Based on what I know I pay and my understanding of prices, $2400 won't get you much once you factor in taxes. I imagine you will want to live in a nice suburban area with at least 4 BR/2BA, 2000 sf, $2400/month in an amortizing payment is a $400k mortgage (without factoring in taxes, if taxes are ~$6000/year, that reduces the mortgage to $325k). I don't think you can get much with a mortgage like that in the DC area. Having said that, a $2400/month subsidy is mighty nice.

I've been looking everywhere online and you can get a nice 4BR 2,500-3,000 in a nice neighborhood for anywhere between 325,000 to 350,000. There are some great deals to look at.

fhmesq44 · Jun 6, 2008

Boss Hog said:
I've been looking everywhere online and you can get a nice 4BR 2,500-3,000 in a nice neighborhood for anywhere between 325,000 to 350,000. There are some great deals to look at.

that is great, didn't think housing was that cheap in the DC suburbs.