When does it make sense to buy vs rent?

I think mobility/flexibility make the biggest impact. If you are planning to move, or your job may require you to relocate, renting makes a lot of sense.

7 years would be worth it to buy IMO. However, that also assumes Louisiana rates and COL. I know in some places, it's fairly expensive to buy a nice place compared to renting. If the economics are similar (rent/mo vs mortgage/mo), I don't see a big negative to buying a place.

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think mobility/flexibility make the biggest impact.

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Similar situation for me and this is the main reason I continue to rent. I won't have the headache of getting rid of a house without knowing where the economy will be at that time. I also work a lot so it is nice not to have to do real maintenance.

As an extremely generic rule of thumb, if rent vs. mortgage come out to be about the same per month, I think moving in under 5 years you'll likely lose money buying, 5-7 you'll likely roundabout break even, 7+ you'll likely save money by buying.

Rates aren't as low as a year ago but are still low historically. FWIW the Richmond metro area is about the size of NO, it's a legit city to put down roots.

Really the question is whether you want to settle down in Richmond. If you do then buy. If not, then don't.

buy it then lease it when you move 5 years later.

lets see buy it for 800 month
then lease it for 1200 a month.

depending on how expensive the house is of course

Since rates are so low, and you are only in for five years, why not purchase on a interest only loan? You benefit from a much lower payment that offsets the costs to purchase. You benefit from any actual appreciation in value. You come back to the MB and get advice on investing the difference in payments that will grow much more rapidly than real estate.

To each his own here - but for me, whenever I move to a new area, I prefer to rent for a good 6 months just to learn where I really want to live.

Someone made a point a few posts back regarding your company's relo policy - this is a good point. Relo for an owner is usually much more generous.

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Does your company have a decent relocation package? If so, and if you move for work, an owner's relocation package is usually much more generous than a renter's. The costs of buying may be covered by the employer, so moving in 5 may still be OK

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This. I just moved for work with a relocation package. As I understand it, the tax law allows for many more items to be expensed if you are purchasing than if you are renting.

Besides, you'll get the mortgage deduction that you wouldn't get.

Based on my experience relocating here's what you need to know:
- Is this a house I actually want to own? Would I be comfortable trying to sell it again or living in it for 30 years?
- Is it the right neighborhood?
- How much investment is required to make this a house I actually want to own?
- What does it cost to rent?
- What is the cost of financing?


Relo package aside, here's a little math I did on the subject:
- Average house in the US $250k
- Mortgage payment on $200k ($50K downpayment and 4.5% rate): $1001.52
- Property Taxes: $300
- Total nugget $1,301.52
- Actual principal over 30 years being paid each month: $556
- Deductible interest and property taxes over 30 years: $745.44 (Total ~$9k / year)

Cost of all the bullshite required to buy and close on a house: $~9k. But assume you were going to buy in the future anyways and were just being conservative?

Annual tax benefit alone to purchasing vs. renting (assuming payments are equal) ~$2K at your income level (I think, not a tax accountant just back of the napkin math).

My advice would be to just make sure you won't want to move in the immediate future, don't just buy for the sake of buying.