Buying vs renting

vnstacie · October 2012

And go!

We will be moving after baby gets here. The houses in this little town for rent go for 1600+ for tiny 2-3 bedroom 1 bath houses not allowing pets, or 950+ for 1/1 with pets. We cannot live in a 1bedroom! LOL

The cost of renting is so high because it's a railroader and oil town, so everyone makes pretty good money.

So H and I discussed it and think it would be better to buy, then in 4 years decide if that's where we want to be in terms of schooling for our kids.

Please help me out. I am completely stupid when it comes to purchasing a home. Am I insane for thinking it better the buy then rent right now?

vnstacie · October 2012

Yes, at the least 4 years, they do have the best schools in the state so we could end up staying there, but it'll be something to discuss then. Also, H said he would probably rent it out if we did move. Which is also something we would discuss when the time came.

becasmeca · October 2012

4 years you will for sure be where you are?

My personal opinion is.. the rates are killer right now and when you buy you are paying yourself back!

Meet with your financial advisor and discuss your budget.. see what you get approved for, then look at homes in the area of your choosing within that budget; there are many first time home buyers programs... just make sure you get everything documented on paper. If you have to sell.. look at the market analysis of homes that are in your area built in the same year and a similar model and see the median of days which the house was on the market (keep in mind this will fluctuate in 4 years). If you have to sell you could make money!! or you could break even.. or you could rent and become landlords and get two property tax breaks!

For those that are building homes or have built their own home (sami).. did you have to buy mineral rights too?

becasmeca · October 2012

vnstacie:
Yes, at the least 4 years, they do have the best schools in the state so we could end up staying there, but it'll be something to discuss then. Also, H said he would probably rent it out if we did move. Which is also something we would discuss when the time came.

Don't I know it. The budget in the WY education system is huge. My H was a high school wrestling coach there for a few years and we were sooo surprised when we saw what he got paid.

hisaak · October 2012

I think that if you know you are going to be somewhere for awhile, and it seems to town/city is stable (many towns around where we are aren't as they are dependent on the forest industry which is in decline) I would definitely buy. To me it doesn't make sense to rent long term unless there are really good reasons for it (location, possibility of regular moves, etc)

vnstacie · October 2012

becasmeca:
vnstacie:
Yes, at the least 4 years, they do have the best schools in the state so we could end up staying there, but it'll be something to discuss then. Also, H said he would probably rent it out if we did move. Which is also something we would discuss when the time came.

Don't I know it. The budget in the WY education system is huge. My H was a high school wrestling coach there for a few years and we were sooo surprised when we saw what he got paid.

It is a little nuts!!

we would for sure stay there 4 or more years, H can't be "bumped" for seniority purposes. I never thought I'd be living in that town again, but we have to do what is best.

We are going to speak with the railroad employees bank and hopefully get the best from them. Well, if H is ever home long enough! Lol

natalee36 · October 2012

I say BUY. We also live in a oil town and the rents are outrageous. The best decision we ever made was buying our house. When I think of all the $ we wasted on rent I get sick.

Tulips114 · October 2012

becasmeca:
For those that are building homes or have built their own home (sami).. did you have to buy mineral rights too?

I think this depends on State law where you live.

vnstacie · October 2012

Tulips114:
becasmeca:
For those that are building homes or have built their own home (sami).. did you have to buy mineral rights too?
I think this depends on State law where you live.

it varies, the ranch we live on now only has land rights, the minerals belong to someone else.

you can sell property and keep the mineral rights. Or buy property without it.

Tulips114 · October 2012

Rates are really super low right now making it a great time to buy. No one can say what the housing market will do in 4 years when you might be looking at selling. We just moved and we are buying a house because our mortgage will be about the same as our rent only the house we buy will be much nicer than the one we're renting. Plus it will be ours. That said we have a house we are trying to sell in our old town and we have not had any interest, it sucks.

I agree with Beca, talk to someone, see what you are approved for, see what's out there for the price you want to pay.

manda26 · October 2012

former real estate agent here... not sure where you are or what the market is like, but generally around here unless you do major renovations on a fixer-upper you won't make your money back in only 4 years (especially if you consider you will likely have to pay an agent a percentage if you list it to sell). Not too long ago you could buy then sell very shortly after and make a killing, but houses don't sell like hotcakes anymore. again - not sure where you are.

But with rents like that, you should at least research buying.

alli&dan · October 2012

Holy ish, that's expensive rent for a house. I think there are benefits to buying or renting. As Panda mentioned, buying is long-term. If you think you'll move within the next few years then I'd continue renting. Buying a house can be a pain in the ass, but selling one can be even worse.

Overall, my mortgage payment for my 3 bedroom 1 bath house is less than I've ever paid in rent. That includes my loan, insurance and taxes.

Are any utilities included when you rent? I pay everything from electric, gas, and cable, to sewage and refuse.

vnstacie · October 2012

alli&dan:
Holy ish, that's expensive rent for a house. I think there are benefits to buying or renting. As Panda mentioned, buying is long-term. If you think you'll move within the next few years then I'd continue renting. Buying a house can be a pain in the ass, but selling one can be even worse.

Overall, my mortgage payment for my 3 bedroom 1 bath house is less than I've ever paid in rent. That includes my loan, insurance and taxes.

Are any utilities included when you rent? I pay everything from electric, gas, and cable, to sewage and refuse.

nope, utilities are all extra. So we would pay atleast 300 in utilities. We also have a dog, so if we were as to convince someone to let us keep him they could charge extra.

vnstacie · October 2012

manda26:
former real estate agent here... not sure where you are or what the market is like, but generally around here unless you do major renovations on a fixer-upper you won't make your money back in only 4 years (especially if you consider you will likely have to pay an agent a percentage if you list it to sell). Not too long ago you could buy then sell very shortly after and make a killing, but houses don't sell like hotcakes anymore. again - not sure where you are.
But with rents like that, you should at least research buying.

I don't know anything about anything when it comes to this! Lol we are in wyoming.

Buying vs renting

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