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Advice Please....Is it better to rent or buy???

Saturday, July 13, 2013

Our family has been renting for a number of years now so we can get our financial affairs in order . We will be looking for a new place soon because our son and daughter share a room and they are 10 and 11 years old and need their own space. Problem is we cannot afford to pay additonal rent for another bedroom,but we are concerned about being stuck with repairs of a house we have invested in. Also we are concerned about the area we make our purchase in eventually turning into a crimehaven....and there we would be STUCK!!!!

.....any educated suggetions for 1st time hombuyers?
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Member Comments About This Blog Post
    Definitely a lot of pros and cons. You have to look at your own financial situation. While you could spend money consulting with a financial planner -- you can pretty much find all that information on the internet too. Spend some time googling. There are calculators to help you determine whether renting or buying makes more financial sense. What makes sense for one person, might not make sense for another.
    1577 days ago
    In my area, it is a buyer's market. What about where you are located? Are you still able to purchase houses at low prices at phenomenal interest?

    Then, IF you have a sizable down payment saved up, I say now is the time to buy. Be sure you have a reputable inspector BEFORE offers are legally binding. And have a clause in the termite inspection that they will be held liable for repairs if they don't find something.

    One thing I don't think people think about is if they are truly wanting the bigger home after the teenagers are gone. Is there a way to handle the sleeping arrangements by using an extra space until the kids move out? Like Harry Potter's room under the stairs? But please don't lock the kid in there!!
    1586 days ago
    I think everyone's situation is different. My husband convinced me to buy when we had only been together for 2 years. I was 32 and he was 27. We bought a small house outside of town so that it would not be a financial burden if only one of us had an income. We have never regretted it.
    1586 days ago
    Excellent advice and suggestions - I can only add my best wishes to you emoticon
    1590 days ago
    Well, no matter how great the condition of the home.. things will need to be maintained. plumbing pipes/faucets/drains, electric, floors - replaced/refinished, walls & ceilings painted, roofs repaired/replaced, yards grass mowed gardens weeded snow moved, pest control.

    So, I guess another big question is ... if you have enough for the down payment to make the mortgage affordable, will you be able to do most of the maintenance yourselves? do you have the tools to do the maintenance? Do you have friends that you can swap maintenance talents to get your jobs completed? or will you have to hire these things to be done. There is also the expense of insurance and taxes as mentioned by others.

    Like most have already commented... make a list of everything you can think of that is pro or con.. rent or own... and ask friends who own to look at your list to see if you forgot something important.
    Check out the references of the real estate agent, and their office/company... Yes they are supposed to be working for you... but lets face it they are working for their paycheck too.

    1590 days ago
  • SWAN47
    Great advise from others so wish you luck in making a decision. It's tricky in today's world. It used to be a no brainer. I think you will make the right decision.. emoticon
    1590 days ago
    You have received very good information from our spark friends.

    As the spark person said above - write out the pros and cons - check out the areas you want - especially the schools for your children. When I got a divorce I was only able to afford to buy a townhome (2nd story homes - we share walls). The yards are small and I was able to get a three bedrooms with a bath 1/2 - good size kitchen and living room. I have been here for more than 20 years - the only thing about townhomes is you have to pay association dues which is separate from your mortgage payments.

    Good luck and keep us updated.
    1590 days ago

    Owning your home gives you equity and that is a great thing, but you're right, you need to be repaired to do repairs, and that is tricky. In my opinion in it better to own than to rent because you are really getting nothing for your money when you rent.
    Good luck !!!!
    1590 days ago
    looks like you already have great advise
    I own my home, always thought it was better to buy.
    Things to consider are
    Do you have a down payment?
    If you find a home, will the payment be less than rent?
    Can you afford to avoid a how that is consicered a fixer up?
    Praying God will guide you in your choice
    1590 days ago
    I live in the Uk so things are different here but not by much, mortgages are hard to get and rent is high.
    There are no easy answers. A list of Pro's and Cons is a good idea.
    Check the crime rate in the area you want to move to it is a good indicator as what you can expect.
    Schools are a good thing to look at as well then the things you need like Hospitals and Doctors, Shops and Social groups that you may want to be in.
    One thing we did was see what the area is like at different times of the day and weekend. How busy are the streets in the mornings, afternoon and evenings. Some places look quiet when you veiw a property but can be noisy at other times. Check the area out before you move.

    1590 days ago
    Generally speaking, it is better to own than to rent if you can possibly afford it.
    UNLESS you may not stay in the same area for another 5-10 years.
    My dd is 25 , a walmart cashier, and is in the process of buying her first home- a tiny 2 bedroom condo.
    You might want to think of a condo- many of the advantages of renting and owning- where do you live?
    1591 days ago
    1st check into 1st time home buyers specials. In MO my grandson got a brand new built home with getting part of his down payment from the government. Their is programs that help first time buyers, check out your area. Buying you can deduct interest & taxes & it's yours, renting no deduction & you are making someone else richer.
    No quick answer but do lots of research in your area about both. Good luck.
    1591 days ago
  • SKATER787
    I agree with Scotmama (Eve), now it's the time to buy in any state not just where the prices dropped. I'd take her advice.
    1591 days ago
    You didn't mention what state you live in. If you're in an area where the real estate prices have dropped significantly in the past few years, like AZ and NV, it is a great time to BUY.

    With RENTING you have the advantage (budget-wise) of knowing what your expense will be each month. If the A/C goes out it is up to the Landlord to replace/repair it. On the other hand, you are not building up any EQUITY when you are renting. It is like throwing your money out the window.

    BUYING gives you the advantage of building up EQUITY. It lets you deduct on your income tax expenses like INTEREST on your home loan, TAXES for property, and should some catastrophe happen such as a fire, you would have homeowner's insurance which would cover your home, contents and living expenses until it can be repairs or replaced.

    As a former Real Estate agent and an Accountant, my advice would be to BUY. Your Real Estate agent should be able to guide you so that you do not end up in an area that is high-crime districts, or something turning into a slum area. That's what they are there for -- to guide and advise you. And they are free for you to use.
    1591 days ago
  • --KREN
    Just remember that SELLing a house is not as easy as it used to be. The seller is expected to pay much more than in the past - seller's assist on closing costs, etc. Plus people expect the seller to really have the house in top shape before they will buy it. So before you buy, think about what it will be like when you sell. In my area, it can take 6 mos. to a year to get a house sold. And many price reductions.

    1591 days ago
    With the current economic situation emoticon in this country I feel that renting would be better .Banks/and mortgages are just to messed up and you can not be certain that the institution you choose will not be in finical trouble .
    1591 days ago
    This is such a personal decision! The good thing about buying is that rates are really low now. You would have to research the location and pay to have the house inspected by your own company. I have always believe that your own home especially if you have kids is the best, but again this is between you and your family!!!
    Good luck!
    1591 days ago
  • CHERYLA2012
    The honest answer is there are good and bad points for both!

    My simplified way of thinking on this is it all comes down to exactly what you can afford. There are known and hidden costs for both.

    We rented for 19 years until we finally "put down roots" in my husband's hometown. One day we may sell and go back to renting.

    1591 days ago
  • SKATER787
    Location is the key. Owning a house but don't want to do repairs is a contradictory. You'll have more options if you're willing to buy into a light fixer in a good neighborhood. Good luck.
    1591 days ago
    When I had a family, the pros of owning a home outweighed the cons.
    Now that I am disabled and approaching the twilight of my life, the pros of renting outweigh the cons.
    IMHO, your chldren are getting too old to share a room.
    I would suggest making 2 lists:
    1. The pros and cons of home owning as it applies to your family.
    2. The pros and cons of renting as it applies to your family.
    If you are not going to live in an area at least 4 years, it is generally best to rent.
    Do you have any realator friends who could be more specific to your situation?
    1591 days ago
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