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Started By
Message
buying vs. Renting
Posted on 9/10/13 at 10:51 pm
Posted on 9/10/13 at 10:51 pm
Guys, I made a thread a while back with this question but thought I'd do a new one to be more current.
My question is would it be more advantageous for me to buy or rent in my situation.
Situation is as follows:
I am married. I own a house in Lafayette that is for sale. My wife is a resident physician in Baton Rouge and has 3 years left. We moved into a condo last year in BR, and I've since put my house for sale.
My house in Laf is finally under contract so I've started looking for a better living situation in BR. 950 sqft condos just don't do it for me.
I'm most interested in renting a decent sized town house, duplex, triplex, or single family home. Something with more size and space. I've come to find that rent for anything decent in BR is 1100-1500 and more.
Most good single family residences ive found are around 1200 and up.
I recently found a 1500 sq ft home I am pleased with for 1300 a month.
My question would then be; Is it more advantageous for me to rent something for an amount around $1,300 for 3 years?
Or consider purchasing something around 180-200k? Maybe less, doubtful more.
I've considered with renting that you don't have the responsibility of owning and take out a loan. But I hate the idea of throwing away money.
With purchasing i would be putting money towards something of my own, but then would have the cost associated with owning a home, taxes, insurance, and either resell or renting.
Keep in mind it would only be 3 years.
My question is would it be more advantageous for me to buy or rent in my situation.
Situation is as follows:
I am married. I own a house in Lafayette that is for sale. My wife is a resident physician in Baton Rouge and has 3 years left. We moved into a condo last year in BR, and I've since put my house for sale.
My house in Laf is finally under contract so I've started looking for a better living situation in BR. 950 sqft condos just don't do it for me.
I'm most interested in renting a decent sized town house, duplex, triplex, or single family home. Something with more size and space. I've come to find that rent for anything decent in BR is 1100-1500 and more.
Most good single family residences ive found are around 1200 and up.
I recently found a 1500 sq ft home I am pleased with for 1300 a month.
My question would then be; Is it more advantageous for me to rent something for an amount around $1,300 for 3 years?
Or consider purchasing something around 180-200k? Maybe less, doubtful more.
I've considered with renting that you don't have the responsibility of owning and take out a loan. But I hate the idea of throwing away money.
With purchasing i would be putting money towards something of my own, but then would have the cost associated with owning a home, taxes, insurance, and either resell or renting.
Keep in mind it would only be 3 years.
This post was edited on 9/10/13 at 11:01 pm
9
Posted on 9/10/13 at 11:05 pm to donRANDOMnumbers
quote:
Keep in mind it would only be 3 years.
Closing costs alone probably make it not worth it
Posted on 9/10/13 at 11:43 pm to donRANDOMnumbers
Can you buy an investment property to rent in three years? This sounds like a tailor made situation for that
I see you said that.
Your moving in 3 years?
I would buy as close to lsu as I could and keep it as a rental
I see you said that.
Your moving in 3 years?
I would buy as close to lsu as I could and keep it as a rental
Posted on 9/10/13 at 11:57 pm to Mr.Perfect
I've definitely considered that, but I was trying to stay a little closer to women's hospital for my wife and the interstate for me since I travel.
Otherwise I like the idea of finding something nice thats closer to campus to rent. Though ideally I'd rather rent to adults and not college students.
Something closer to the hospital would probably be better.
Otherwise I like the idea of finding something nice thats closer to campus to rent. Though ideally I'd rather rent to adults and not college students.
Something closer to the hospital would probably be better.
Posted on 9/11/13 at 12:06 am to donRANDOMnumbers
Lsu to airline/industriplex would get rough.
Rates are still great and if you think you will be in a position to get a second mortgage in a few years its worth the thought.
The old why not use someone else's money to make you rich idea.
Rates are still great and if you think you will be in a position to get a second mortgage in a few years its worth the thought.
The old why not use someone else's money to make you rich idea.
Posted on 9/11/13 at 12:30 am to donRANDOMnumbers
quote:
Keep in mind it would only be 3 years.
Rent
Unless you don't mind keeping it as a rental, and so long as continuing to have a loan on that rental doesn't hinder you from buying your next house.
You should definitely not buy a house that you will absolutely need to sell in 3 years.
This post was edited on 9/11/13 at 12:31 am
Posted on 9/11/13 at 12:45 am to SpidermanTUba
quote:
so long as continuing to have a loan on that rental doesn't hinder you from buying your next house.
The big question. And is there a good chance of becoming a long distance landlord?
Posted on 9/11/13 at 9:49 am to Mr.Perfect
quote:
The big question. And is there a good chance of becoming a long distance landlord?
In which case you'll be paying all the profit to someone to manage it - unless you happen to have just the right tenant.
I've actually been wondering this. I know that a loan to buy property to rent will require more down payment and more interest than a home to live in. But suppose I want to rent out the home I live in now, and buy another, and have notes on both? The loan on the first house is already made. Does the bank charge me the higher interest and have the higher down payment on the 2nd home?
This post was edited on 9/11/13 at 9:51 am
Posted on 9/11/13 at 10:32 am to SpidermanTUba
Your credit report will show the other mortgage. And you can only have one primary.
So I say yes. And unless you move out and get a lease to show the bank, fha using the rental income would not be an option
So I say yes. And unless you move out and get a lease to show the bank, fha using the rental income would not be an option
Posted on 9/11/13 at 11:19 am to donRANDOMnumbers
Def Rent. Way to many unknowns in your future.
Posted on 9/11/13 at 12:36 pm to donRANDOMnumbers
My house in Kenilworth is still for sale since June.
My wife is a doc too, and we're renting where we are.
Just rent don, no telling how long it'll take to sell. Then when you leave, you won't have this issue popping back up again.
My wife is a doc too, and we're renting where we are.
Just rent don, no telling how long it'll take to sell. Then when you leave, you won't have this issue popping back up again.
Posted on 9/11/13 at 2:53 pm to SG_Geaux
quote:
Closing costs alone probably make it not worth it
5 years is almost the minimum you would need to hold to break even on buying (or refinancing, under most circumstances) because of this reason.
Posted on 9/11/13 at 3:30 pm to BRgetthenet
quote:
My wife is a doc too,
we have something in common!
Posted on 9/11/13 at 9:08 pm to donRANDOMnumbers
So my situation is kind of similar. I own a house in the BR area, but I took a job that is 100% travel and the (soon to be) wife is in med school in Shreveport. Last year I decided to move to Shreveport bc if I was going to be somewhere only on the weekends it made no sense to have a house in BR that I would rarely use.
I've been renting and my current tenants have been great, but are moving out at the end of the year. So I'm either going to have to find new tenants (which SUCKS) or sell.
All that being said, unless you know you're going to put roots down, I'd rent. Owning a house can be a headache at times. All the initial costs of ownership add up over the first few years and if you know you'll be moving on in a few years it makes it harder to invest a lot of time/effort into making it how you really want it.
P.S. When are you looking to move? You may have stumbled upon a good opportunity, hah.
I've been renting and my current tenants have been great, but are moving out at the end of the year. So I'm either going to have to find new tenants (which SUCKS) or sell.
All that being said, unless you know you're going to put roots down, I'd rent. Owning a house can be a headache at times. All the initial costs of ownership add up over the first few years and if you know you'll be moving on in a few years it makes it harder to invest a lot of time/effort into making it how you really want it.
P.S. When are you looking to move? You may have stumbled upon a good opportunity, hah.
This post was edited on 9/11/13 at 9:40 pm
Posted on 9/15/13 at 12:05 am to donRANDOMnumbers
Closing cost and realtor fee's to sell for just three years what's the advantage. It's not likely you'll stay in that area and then you'll have another rental that may require a management company. If you decide to purchase check out homepath.com for fannymae repo's.
Posted on 9/15/13 at 8:40 am to donRANDOMnumbers
If you decide to rent, let the landlord know you'll be there for 3 years, if they know you're locking it up for that long, they may give you a deal on the rent.
I'm not advocating 1 vs the other, just something to consider.
I'm not advocating 1 vs the other, just something to consider.
Posted on 9/15/13 at 8:48 am to donRANDOMnumbers
There is too much of a risk that we have another round of asset deflation in the next 5 years. Unless you can hold the property for a good decade, I would rent.
Posted on 9/16/13 at 2:56 pm to Blakely Bimbo
update:
i ended up finding a couple single family houses and a nice sized townhouse to rent. after deliberating we went with the townhouse.
1650 square feet.
Completely repainted with all brand new appliances.
They were asking $1,300 rent, but i talked them down to $1,200. But I then negotiated new wood floors in the living area and pushed my rent back up to $1,250.
happy with this. gonna be there for 34 months.
i ended up finding a couple single family houses and a nice sized townhouse to rent. after deliberating we went with the townhouse.
1650 square feet.
Completely repainted with all brand new appliances.
They were asking $1,300 rent, but i talked them down to $1,200. But I then negotiated new wood floors in the living area and pushed my rent back up to $1,250.
happy with this. gonna be there for 34 months.
Posted on 9/17/13 at 12:36 am to donRANDOMnumbers
(no message)
This post was edited on 3/23/22 at 7:57 am
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