Author Topic: Buy vs Rent - can u help me?  (Read 313 times)

Offline Avs175

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Buy vs Rent - can u help me?
« on: April 18, 2019, 08:59:33 PM »
If anyone here can help me, Id really appreciate it. I know absolutely nothing about this stuff, so any insights will be bug help.

Im hopefully moving to a new city soon. I can either rent an apartment for approx 1500 a month, or can buy a small house house for 350k. If I put down 50k (20 percent), my monthly payments would be approx 2000 a month acc to online site (mortgage, interest, hmo fees, insurance, etc)...

I only plan on living there for 2-4 years, so would then want to sell it. Does it make sense to buy/rent.... I dont care for a house, just want the most economical one.

Last thing to consider: I think the real estate value will go up, thats whats been going on last few years, but obviously no way to know.

Thanks

Offline Mordyk

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Re: Buy vs Rent - can u help me?
« Reply #1 on: April 18, 2019, 09:03:52 PM »
If anyone here can help me, Id really appreciate it. I know absolutely nothing about this stuff, so any insights will be bug help.

Im hopefully moving to a new city soon. I can either rent an apartment for approx 1500 a month, or can buy a small house house for 350k. If I put down 50k (20 percent), my monthly payments would be approx 2000 a month acc to online site (mortgage, interest, hmo fees, insurance, etc)...

I only plan on living there for 2-4 years, so would then want to sell it. Does it make sense to buy/rent.... I dont care for a house, just want the most economical one.

Last thing to consider: I think the real estate value will go up, thats whats been going on last few years, but obviously no way to know.

Thanks
To your last point, this has nothing to do with the location you want to live. If you want to invest in real estate because it will go up then you can choose anywhere in the U.S., doesnt have to be in the house you will live in if it's for such a short while.

I also dont think closing costs can be justified for a house that you only want for 2-4 years

Another point, that for the first few years of a mortgage most of the money goes to interest so no essentially your still paying $1500 just to live there

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Re: Buy vs Rent - can u help me?
« Reply #2 on: April 18, 2019, 10:45:57 PM »
True, good points, but closing costs are not necessarily high in some states. Is there a rental market for that house after you move in 2-4 years?

Offline ludmila

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Re: Buy vs Rent - can u help me?
« Reply #3 on: April 18, 2019, 11:01:04 PM »
True, good points, but closing costs are not necessarily high in some states. Is there a rental market for that house after you move in 2-4 years?
RE brokers fees when selling in a short period,closing costs, maintenance costs, real estate taxes , home insurance, take all of these and I am sure I missed some, into consideration when comparing. And house prices can go either way . I myself will definitely rent if it is for 2 years, for 4 years or longer maybe buying is the better option.
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Offline Yammer

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Re: Buy vs Rent - can u help me?
« Reply #4 on: April 19, 2019, 12:32:01 AM »
If anyone here can help me, Id really appreciate it. I know absolutely nothing about this stuff, so any insights will be bug help.

Im hopefully moving to a new city soon. I can either rent an apartment for approx 1500 a month, or can buy a small house house for 350k. If I put down 50k (20 percent), my monthly payments would be approx 2000 a month acc to online site (mortgage, interest, hmo fees, insurance, etc)...

I only plan on living there for 2-4 years, so would then want to sell it. Does it make sense to buy/rent.... I dont care for a house, just want the most economical one.

Last thing to consider: I think the real estate value will go up, thats whats been going on last few years, but obviously no way to know.

Thanks

To your last point, this has nothing to do with the location you want to live. If you want to invest in real estate because it will go up then you can choose anywhere in the U.S., doesnt have to be in the house you will live in if it's for such a short while.

+1

You can take your 50k and invest it somewhere where the market/potential is better.

Offline Avs175

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Re: Buy vs Rent - can u help me?
« Reply #5 on: April 19, 2019, 12:36:43 AM »
True, good points, but closing costs are not necessarily high in some states. Is there a rental market for that house after you move in 2-4 years?
I dont know about market for rental, not sure...

Offline Avs175

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Re: Buy vs Rent - can u help me?
« Reply #6 on: April 19, 2019, 12:38:06 AM »
Another point, that for the first few years of a mortgage most of the money goes to interest so no essentially your still paying $1500 just to live there
If this is true then I think it doesnt pay. Thank you.

Offline Avs175

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Re: Buy vs Rent - can u help me?
« Reply #7 on: April 19, 2019, 12:38:31 AM »
Thanks all for your help!