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Started By
Message
potential first-time home buyer
Posted on 9/19/24 at 9:21 am
Posted on 9/19/24 at 9:21 am
I am in my 50's and just got married. I am a veteran, and my income is around 90k.
My wife's income is not very high, maybe around 30K.
Navy federal quoted me 4.75% on a 30-year mortgage. I am looking at a couple of new builds, one is a townhome (220k) and the other is a single-family home (285k). No children.
Wife is from South America and owns a home there. I figured if we buy a home here and retire in 10 to 12 years, we can cash out and live in South America. She wants to rent and doesn't want the obligation of a mortgage. Her home in South America is paid for.
Rent in my area is comparable to a mortgage.
Any advice on buying versus renting? Seems like a no brainer
My wife's income is not very high, maybe around 30K.
Navy federal quoted me 4.75% on a 30-year mortgage. I am looking at a couple of new builds, one is a townhome (220k) and the other is a single-family home (285k). No children.
Wife is from South America and owns a home there. I figured if we buy a home here and retire in 10 to 12 years, we can cash out and live in South America. She wants to rent and doesn't want the obligation of a mortgage. Her home in South America is paid for.
Rent in my area is comparable to a mortgage.
Any advice on buying versus renting? Seems like a no brainer
15
Posted on 9/19/24 at 9:26 am to El Gallo
Brother
Buy and dont look back. Idea being you have the income, you have the opportunity, and it will help set yourself up for retirement. If you do it correctly it can be a great investment.
Buy and dont look back. Idea being you have the income, you have the opportunity, and it will help set yourself up for retirement. If you do it correctly it can be a great investment.
Posted on 9/19/24 at 9:27 am to El Gallo
If you retire in 10 years and start build now, you will only live in home 8 years. You need 4-5 years just to recoup closing costs. If anything happens in the interim like an A/C replacement or roof damage in a storm, you are shelling out several thousand dollars. Not sure it’s as much of a no brainer as you think to build unless you don’t really plan on moving to South America in 10 years.
This post was edited on 9/19/24 at 9:29 am
Posted on 9/19/24 at 9:40 am to El Gallo
I would 100% rent. Ten years is not long enough to make buying it worth it
Posted on 9/19/24 at 9:47 am to El Gallo
In your case, no doubt in my mind I would rent. If you planned to retire and live in that home forever then buy. But since you would like to move to SA after retirement, renting is a no brainer.
Posted on 9/19/24 at 9:52 am to TigerTatorTots
No way… buy!
Say you recoup closing costs in 4 years; that gives you 6+ years to pay into “equity”.
You also have 10 years for home values to go up. Make sure you get good inspection, and buy home warranty.
If mortgage and rent are comparable, you will come out ahead, even if it’s $10k-20k
Say you recoup closing costs in 4 years; that gives you 6+ years to pay into “equity”.
You also have 10 years for home values to go up. Make sure you get good inspection, and buy home warranty.
If mortgage and rent are comparable, you will come out ahead, even if it’s $10k-20k
Posted on 9/19/24 at 9:53 am to TheOcean
quote:
Ten years is not long enough to make buying it worth it
That is not 100% true. Market and location could completely change that picture. Our current home bought in 2004, went up $75,000 in 10 years. At the 20 year mark the value has increase 181%.
There is value to buying over renting, if the prices are similar.
Posted on 9/19/24 at 9:55 am to El Gallo
4.75% is a great rate right now
Posted on 9/19/24 at 9:59 am to El Gallo
quote:
Navy federal quoted me 4.75% on a 30-year mortgage
Can you pull off a 15 year? Would probably run you $500-$700 more a month, but you should get a better interest rate and you will obviously have more equity in the house at 10 years.
Posted on 9/19/24 at 10:27 am to El Gallo
Kameltoe will give you the down payment if you wait
Posted on 9/19/24 at 10:33 am to El Gallo
quote:
Rent in my area is comparable to a mortgage.
When comparing the rent to the mortgage are you also factoring in the "other costs". Renter insurance is cheaper than homeowners & flood. Is there an HOA, what are those costs? Property taxes factored in with mortgage. Depending on age of house/appliances, would you be able to save for emergency repairs/replacement?
When you retire in 10-12 years will you try to sell or rent?
Posted on 9/19/24 at 11:55 am to El Gallo
What is the status of the house in South America? Being rented, family living in it, vacation home/rental?
Posted on 9/19/24 at 1:00 pm to El Gallo
Shop the rate w a mortgage broker, dont assume Navy Fed is best rate. If you have a disability rating VA loan funding fee should be waived.
I'd probably buy. Plans change, and having a US property would provide some diversification. Compare townhome expenses w standalone not just price. Also, check if either property has restrictions on long or short term rentals in case you rent it later.
I'd probably buy. Plans change, and having a US property would provide some diversification. Compare townhome expenses w standalone not just price. Also, check if either property has restrictions on long or short term rentals in case you rent it later.
Posted on 9/19/24 at 1:25 pm to El Gallo
10-12 years of rent? NFW especially with a 4.75% offer? Buy and you will get some of your money back when you retire.
Posted on 9/19/24 at 1:57 pm to TJack
quote:
10-12 years of rent?
That really is an amazing amount of rent people are saying go with
. If the rent and mortgage are same, mortgage is only one you can possibly recoup and even the possibility of increasing value. Rent is just gone.
Posted on 9/19/24 at 2:13 pm to El Gallo
You have two good options if your plan is to eventually retire in South America in the home your wife owns with a lower cost of living. The main outlier is where you think the housing market is going in your area.
Posted on 9/19/24 at 2:34 pm to DarthRebel
quote:
That really is an amazing amount of rent people are saying go with . If the rent and mortgage are same, mortgage is only one you can possibly recoup and even the possibility of increasing value. Rent is just gone.
Built a house in BR in 2011 and sold it 9 years later. My mortgage was $1500 a month and I walked away with $135,000 after a 3% down payment. Rolled that into a new build I moved into in December of 2020 with about another 150k down, mortgage of $2500 , built pool, fenced yard etc. I sold that in June and walked away with 480k( corporate moved reimbursed me 54k in closing cost) and I will be putting that down on a new place in Texas along with some additional money to get the mortgage the where I want it.
I couldn’t imagine renting for the last 10 years then walking away with nothing. That shite just seems crazy to me.
This post was edited on 9/19/24 at 5:17 pm
Posted on 9/19/24 at 3:10 pm to El Gallo
quote:how much are you putting down for your down payment?
one is a townhome (220k) and the other is a single-family home (285k).
Posted on 9/19/24 at 4:03 pm to xBirdx
At that age, I'd want to reduce my risk. Being a home owner has a lot of risk with unexpected costs that a renter wouldn't have to worry about. A couple major repairs will eat up any increase in home value over that 10 year period. Also it isn't unreasonable to look at the current state of real estate pricing and see there is also risk.
Posted on 9/19/24 at 4:06 pm to TigerTatorTots
He said new construction.. chances are should be good for 10 years.
But yes … risk/reward
But yes … risk/reward
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