Deals Plus: Do you think it is better to rent or buy if we're only going to be here for 2 - 3 yrs?

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Do you think it is better to rent or buy if we're only going to be here for 2 - 3 yrs?

There's usually a pre - pay penalty if you sell the mortgage before 2 or 3 years, plus the. I have seen to many things go wrong when a homeowner rents a newly owned property and deals

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Great Question! Well this depends on so many things. I will break down advantages v. disadvantages. Renting. You put approx. USD 1000. into a home, that you do not own, and after 3 years, you will have paid someone else USD 36, 000 for THEIR mortgage. That's the bottom line! Investment, and equity!. Now, you also do not have to worry about major appliances breaking down, since the actual home owner is responsible, nor do you have to worry about added home insurance, but some renters opt for personal property insurance. Home owners have to pay for Home ociation fees, renters do not. Also renters do not have to come up with closing costs, just a perhaps 3 month equivalent of rent to cover costs for repairs, which they can receive back upon property vacating. Added costs for purchasing a home, are new repairs, if the property is older, and inspection fees. If you're lucky and find a home that is new, then you can easily get closing costs paid for, or lowered and points negotiated, when buying, and on top of that, you have all new appliances, and less worries; you're ready to move in. Moving is something different! If a market fluctuates, and you're not in an optimum area, it could take months to sell, resulting from a lower asking price, or even having to let a property go. If you opt to rent it out, now you have to manage the new renters and have a nice chunk of change set aside for mortgage payments not paid, or property repairs, and repairs if they should occurr. I have seen to many things go wrong when a homeowner rents a newly owned property and deals with rental managment companies. My family is military so we rented for quite some time before actually buying. It worked out for us, since we knew that the area we were in was not permanent. If you're not into investment options at this time, I think renting is better, and easier
For only 2 - 3 years it is usually better to rent. Unless, you find a real deal that is being sold below its real value. The time and effort of selling can be considerable, and if, when you leave you are going out of town, you may have to travel back a few times before a sale is made. If you were looking at 5 years plus i would advocate buying, unless you cannot really find a good deal one you are sure will at least sell same price in a few years. do not put too much faith in homes always going up in value, that is not always the case. People that bough 3 years ago in most parts of the country are finding their homes have gone down in value. In the long run they do tend to go up, but 2 - 3 years is not enough time to be sure
There's usually a pre - pay penalty if you sell the mortgage before 2 or 3 years, plus the first couple years goes mostly towards interest, not principle, so why deal with the hastle of trying to sell the place in time and fixing any problems when a landlord takes care of the household problems for you? It may cost you more in the long run if you buy when it is for such a short time!
For short periods of time less than 5 years renting is better. During the early years of a mortgage, the majority of your payment is going to interest, so you do not build up much equity. When in doubt, bring up your spreadsheet program and run the numbers yourself
Buying is always better. Why would you want to put money in a landlords pocket when you could be lining your own pocket? 2 or 3 years is plenty of time to build equity into a home. You will almost always come out on the sale of the home in better status
That would probably depend upon the viability of the local market more than your personal situation. Two to three years is likely to be a sufficient time in some markets to attain sufficient appreciation on a property to make it worthwhile. On the other hand, in soft or depreciating markets which are many, you would have to have a killer deal going in to come out after three years. Things that you should factor in to your buy / rent formula would include tax savings from your interest deduction, appreciation if any, added value if any, sales commissions on resale 3. 5 percent to 4. 55 percent may be the "new" 6 or 7 percent in three years. If you want the best of owning and renting, rent a single family home. You will not receive any benefits of ownership, but you can still have the pride of ownership! In some areas, a Realtor may even purchase the property of your chosing as long as they can produce a modest monthly cashflow. I have serveral ociates that do this routinely. The decision is yours, but may I suggest visiting realtor.com to do a little window shopping?. I also have some helpful literature and rent vs. own calculators on my websites. MotivatedAgent.net. InspiredFinancing.net

Tags: rent, time, home, years, property

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