Buy or rent in this economy and market?

[cammy85]

We actually just got a signed contract today on a houe. We both currently rent and the wedding is next month. We thankfully had enough saved up for 20% down, closing costs, attorney fees, insurance all that good stuff and we calculated it so we can live on one income if need be. I wouldn't have bought otherwise. For us, even if the economy does get worse before it gets better, now is the right time to buy. We got a great deal on the house and we plan on staying there for a good long time. We have room to grow and have a family without being cramped. I'm not sure I would have considered buying right now if it was only for 2-4 years. We're talking 10+ in this one.

But for everyone, their situations are different, the markets are different and the priorities are different. You really just have to weigh your personal situation and finances to see if you are financially and emotionally ready to buy.

Buying a house is pretty scary, but it's really exciting. I can't wait to make some memories!

ETA: we got preapproved for a loan amount and got a monthly payment estimate based on the highest price range we were looking at for a house - we refused to pay that amount for a house, but knew we could carry it if necessary on one income. I feel great that we were also able to come in under what we had thought about paying. Every little bit helps.

 

[PilsnPinkysMom]

We''re renters who often talk about buying.

Bottom line: We have 0 money for a down payment, I don''t know where I''ll be employed after law school, and nice homes are a bit more costly around my area... Not comparable to California or vacation spots, but CO is drastically different from OH. Our first home will likely cost 300-500k, while in OH it would cost maaaaybe 100-150k.

There are tons of reasons I would love to own my own home, though. I cannot stand being a renter. Bah.

 

[CNOS128]

We rent! Buying in NYC is prohibitively expensive (at least, to get the amount of space we''d like to have). We''ll wait until we decide where to live on a long-term basis, even though now''s a good time for first-time buyers to purchase a home. Barbara Corcoran said so...

 

[ilovethiswebsite]

We are renting until I am done school and we settle on which city we want to live in (hopefully my home town..

)

 

[Fleur_de_Lis]

FI and I are buying, in fact we''re scheduled to look at a few homes as soon as we return to LA. We both feel that renting is a waste of money. You spend hundreds, if not thousands, of dollars a month and have no equity.

 

[DMBFiredancer]

i''ll probably rent for the rest of my life...LOL


but i love where i live too much. i know its not financially smart, but....maybe one day i''ll grow up

the median house price in my city is over 900,000. unless i win the lottery, its just not happening.

 

[DMBFiredancer]

Date: 2/8/2009 11:23:14 AM
Author: .Jenevieve.
FI and I are buying, in fact we''re scheduled to look at a few homes as soon as we return to LA. We both feel that renting is a waste of money. You spend hundreds, if not thousands, of dollars a month and have no equity.

don''t remind me. i''m trying to ignore it.

 

[bensbride]

I bought a little starter house on my own almost 4 years ago and when we''re married, he''ll move here! Its not conventional, but the house is big enough for the two of us and if we''re ever blessed with a first child, it would probably still work. Beyond one child would be a little ridiculous, but by then we''ll hopefully be able to "upgrade". However, I live in Iowa and houses are considerably less expensive here than in most areas of the country. My mortgage here is only slightly more than my rent in Chicago, which was 1/3 of a three bedroom apartment.

 

[Diamond Confused]

Date: 2/8/2009 11:40:28 AM
Author: DMBFiredancer
i''ll probably rent for the rest of my life...LOL


but i love where i live too much. i know its not financially smart, but....maybe one day i''ll grow up

the median house price in my city is over 900,000. unless i win the lottery, its just not happening.

Don''t feell bad. I actually saw a whole report that basically said buying a house is not necessarily the best choice. What the experts were saying went something like this: Let''s say you buy a 900K house and sell it 15 years later. The profit from the sell would be considerably less than the reutrn you would get from investing that money in a money market or long term life policy. as a renter you don''t have to pay incidentals such as repairs, insurance taxes etc. So even if rent is expesive you still pay less and can invest that savings.

They said only twice in the last century has a housing boom occured which led to significant profit for homeowners. It was immediately after WWII and the one that began in 2000 and ended just before the housing market crashed.

So in cunclusion, you may be better served investing anyway.

 

[Tuckins1]

Buy!!!