One last time. I need your opinions to rent or buy

Enfuego · Jul 7, 2008

We're moving to Virginia in a week. We'll be there about 3-4 years. I can afford a $2,400 payment per month. I own a home in North Carolina already and it is occupied with good tenants.

My question is do I buy or rent? If I buy my cap is $300,000 (loan approval) and we've been looking and can find a decent home for that much or a little over and we can offer less.

Will the market rebound by 2011 and make us some money or will it get worse and stick us with a home we can't sell? What do you guys think?

I really need Calvin Ty's opinion because we're moving to his city.

Betting4Fun · Jul 7, 2008

I am not in the US but from what i read and follow,buying at that point of time will not be wise with time frames you mentioned,you better off renting for time being and as you are approved for purchase in several monthes will be most likely better timing for you to get into purchasing,weak USD ,rise in inflation,bank industry in crisis,slowing economy,and the symptoms of the sub prime crisis ain't over..rise in unemployment,real estate prices dropping and the bubble is not over,better rent for time being and just follow the trends,you don't have to be an expert to be able to tell when finally the trend will change into another good period and real estate prices hit finnaly the bottom.

Legend-I-Aint · Jul 7, 2008

buy now

BenLaw47 · Jul 7, 2008

Boss,
If you have cash on hand to buy something, I would say buy now. It is a "renters market" now, but its basically b/c no one can afford to buy anything, so most people are renting now (i.e. condo flippers who couldn't instantly flip like they could 2-3 yrs ago). Houses are extremely cheap now, so if you can afford to throw that cash around, then do it. If not, then I'd go with renting.

gtc08 · Jul 7, 2008

renting is always better. with all the money you save you can have investments and stock worth a equity line 15-20 years down the road, and you arnt stuck. home ownership is very overrated.

WorldNumberOne · Jul 7, 2008

i'm hearing some lenders are requiring 20 % down now ..

you got that much ?

Enfuego · Jul 7, 2008

World Number One said:
i'm hearing some lenders are requiring 20 % down now ..

you got that much ?

VA loans are very nice. 0% down.

WorldNumberOne · Jul 7, 2008

Boss Hog said:
VA loans are very nice. 0% down.

i imagine you have at least that much...

billhill999 · Jul 7, 2008

Buy, you'll have equity.

punter · Jul 7, 2008

If it has to go up by 2011, you are taking a gamble. If you do not stand a chance of getting squeezed, buying is the best.

fhmesq44 · Jul 7, 2008

World Number One said:
i'm hearing some lenders are requiring 20 % down now ..

you got that much ?

FHA loans as low as 3% down if you qualify.

oldmanTED · Jul 7, 2008

Originally, I would say unconditionally to buy due to the benefits of the tax deductions on interest and property taxes. However, you have stated that you are only planning on staying 3 to 4 years. This housing market and credit crisis is the worst I have seen in my lifetime and I fully doubt that the market will rebound at the rate of previous upturns. Therefore, IMHO should you decide to buy, don't expect to have gained much if any equity in 3 to 4 years and if you are going to sell at that point, you must factor in your selling costs. Basically, you should compare your total rent costs and sales cost 3 to 4 years from now against your tax deductions for that same time period. Just my two cents.

Enfuego · Jul 7, 2008

oldmanTED said:
Originally, I would say unconditionally to buy due to the benefits of the tax deductions on interest and property taxes. However, you have stated that you are only planning on staying 3 to 4 years. This housing market and credit crisis is the worst I have seen in my lifetime and I fully doubt that the market will rebound at the rate of previous upturns. Therefore, IMHO should you decide to buy, don't expect to have gained much if any equity in 3 to 4 years and if you are going to sell at that point, you must factor in your selling costs. Basically, you should compare your total rent costs and sales cost 3 to 4 years from now against your tax deductions for that same time period. Just my two cents.

I have no issue renting the home after we leave Ted. What would you say then?

oldmanTED · Jul 7, 2008

Boss Hog said:
I have no issue renting the home after we leave Ted. What would you say then?

Buy! The reason being you will be holding the property long term and can depreciate the house and over time will, in fact, gain the equity while gaining the tax benefits. Renting provides you none of this. Think long term not short term.

go2guy · Jul 7, 2008

Boss Hog said:
VA loans are very nice. 0% down.

But an almost 3% "fee" (of purchase price) to get the loan that doesn't toward the down payment

GreenDoberman · Jul 7, 2008

There are numerous financial sites that will do a rent vs buy comparison for you if you plug in some numbers. Do a google search and that may help.

I believe you said you are moving to Woodbridge. There are several posters that live in or near that area that may be somewhat knowledgeable about the current real estate market.

You may want to look up:
oldirtyku
skinsraj and dsethi
SundayTiger
JustMe
and a few others may be able to help.

I have a sister that lives in the area so know it somewhat but don't know how much help I can be.

Enfuego · Jul 7, 2008

oldmanTED said:
Buy! The reason being you will be holding the property long term and can depreciate the house and over time will, in fact, gain the equity while gaining the tax benefits. Renting provides you none of this. Think long term not short term.

Thank you.

Dante · Jul 7, 2008

for sure BUY....renting is throwing your money away..10yrs ago we went from renting to buying ...house was bought at 89000 its worth 181000 today... we only owe about 65000 with a 15yr mortage.... good stuff... and we have equity.... do not rent

Betting4Fun · Jul 7, 2008

Dante said:
for sure BUY....renting is throwing your money away..10yrs ago we went from renting to buying ...house was bought at 89000 its worth 181000 today... we only owe about 65000 with a 15yr mortage.... good stuff... and we have equity.... do not rent

There is no dispute owning in general has its own benefits and is better than paying rent if one can afford it,but the main question now in light of the current real estate market/prices ,is this a good point to get in or the guy could get the same assest for much less in several months down the road.imo based on what i read the bottom line has not reached yet,so if he could buy for less and increase his profit margins why buy now and not wait till prices nearing its bottom and then buy?even with adding the rental cost for that period sitting on the fence till the purchase to the total cost later,it will be more than likely cheapper then and lower than current price asked by sellers these days.

MrCleo · Jul 7, 2008

gtc08 said:
renting is always better. with all the money you save you can have investments and stock worth a equity line 15-20 years down the road, and you arnt stuck. home ownership is very overrated.

thats pretty inaccurate all the way around

One last time. I need your opinions to rent or buy

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