|
|
|
|
#1
10-01-2007, 08:00 AM
|
|||
|
|||
If you can afford to buy a house/condo should you do it to avoid rent?
I mean I'm not sure I want to commit myself to one place for the next 10 years or anything like that, but if it's smarter to buy a condo for the next 3-5 years than to rent for that whole time I'm thinking I should do it. It's just that I'm not very clear on the logistics of these things. Other than all of the maintenence I'd have to take care of myself, what downsides are there to owning vs renting?
|
|
#2
10-01-2007, 08:05 AM
|
|||
|
|||
|
Re: If you can afford to buy a house/condo should you do it to avoid r
I'm in the process of trying to figure out the same thing. There are a lot of good resources out there (comparison charts, calculators and whatnot) that look at "buy vs. rent." Here's one, http://biz.yahoo.com/pfg/e10buyrent/ .
|
|
#3
10-01-2007, 08:15 AM
|
|||
|
|||
|
Re: If you can afford to buy a house/condo should you do it to avoid r
Do a little research on the housing market?
new homes sales tumble to 7 year low you ain't seen nothing yet interview with housing index guru I was too optimistic on the housing market now it hurts Jim cramer on housing #1 home builder larger losses than expected greenspan says prices to drop much further
|
|
#4
10-01-2007, 09:02 AM
|
|||
|
|||
|
Re: If you can afford to buy a house/condo should you do it to avoid r
CF,
The rent vs. buy decision has and always will be debated - I'm sure you can find previous threads on this topic by searching the forum. There is not a solution that fits everyone and it ultimately comes down to the specifics of your particular situation. The people in the homeownership crowd will tout the potential for appreciation, returns of your monthly payments through principal paydown, and the satisfaction of owning your home. The renters will reference the opportunity cost of putting a down payment into your home rather than investing it in the market, not taking on the financial risk of home ownership, the fact that you are responsible for maintenance and not a landlord, and you are not tied down to 1 location. With a google search you can probably find some calculator or tool that can run the financials of the rent vs. buy decision, but usually the decision should be driven by your lifestyle wants/needs rather than a pure #'s analysis. I would say as a general rule-of-thumb, unless you are planning to stay in the home for 5 years or more realtor fees and closing costs will probably eat away any of the potential appreciation or principal paydown you acheive by owning a home. This would be 1 factor to consider since you mentioned a 3-5 year timeframe.
|
|
#5
10-01-2007, 09:07 AM
|
|||
|
|||
|
Re: If you can afford to buy a house/condo should you do it to avoid r
[ QUOTE ]
Do a little research on the housing market? new homes sales tumble to 7 year low you ain't seen nothing yet interview with housing index guru I was too optimistic on the housing market now it hurts Jim cramer on housing #1 home builder larger losses than expected greenspan says prices to drop much further [/ QUOTE ] Jono - are you saying this is a good time to be a buyer or to avoid the purchase of a home at this time? I think without knowing the specific market the OP is considering applying nationwide statistics is somewhat of a poor exercise. Personally, I wish I was in the market for a new home right now as the "power" has clearly shifted in the buyer's favor at this time.
|
|
#6
10-01-2007, 07:19 PM
|
|||
|
|||
|
Re: If you can afford to buy a house/condo should you do it to avoid r
[ QUOTE ]
[ QUOTE ] Do a little research on the housing market? new homes sales tumble to 7 year low you ain't seen nothing yet interview with housing index guru I was too optimistic on the housing market now it hurts Jim cramer on housing #1 home builder larger losses than expected greenspan says prices to drop much further [/ QUOTE ] Jono - are you saying this is a good time to be a buyer or to avoid the purchase of a home at this time? I think without knowing the specific market the OP is considering applying nationwide statistics is somewhat of a poor exercise. Personally, I wish I was in the market for a new home right now as the "power" has clearly shifted in the buyer's favor at this time. [/ QUOTE ] Jimbo, true it has shifted into buyers favor, but there is still a long ways to go more IMO. I would hold off buying for anywhere from 6 - 18 months. Thremp, I agree real estate is local, but save for a small minority of areas the national trends I linked are a pretty good indication of how almost everywhere is performing.
|
|
#7
10-01-2007, 08:05 PM
|
|||
|
|||
|
Re: If you can afford to buy a house/condo should you do it to avoid r
A national trend doesn't really mean a whole lot. A good rent vs. buy tool and good common sense is all that's necessary to determine the financial sensibility of buying a place. Trying to time the market based on a trend from past data is much less effective (and deceiving) than crunching the numbers in real time.
|
|
#8
10-01-2007, 08:10 PM
|
|||
|
|||
|
Re: If you can afford to buy a house/condo should you do it to avoid r
Markets are so local in real estate its absurd. Zoning regulations, city improvements etc etc etc matter infinitely more than any national news, swongs etc. I don't know if I can be more clear about this. You need to do the numbers for your own market, the specific properties you're looking at and the utility each option has for you (perhaps renting despite losing a shade of money means a nicer location, less stress etc etc).
Some markets have been almost completely flat with normal 1-3% appreciation over the last decade, while other places have boomed. Frequently these places are within 50 miles of each other. jono, Actually I'd say the national trends are more indicative of the smallest portions of the housing markets. The coastal areas and a few metros. Most of America isn't in these markets. And even within those markets I'm sure there are pockets that defy national trends. National trends are created from the summation of local markets, not vice versa.
|
|
#9
10-01-2007, 09:55 AM
|
|||
|
|||
|
Re: If you can afford to buy a house/condo should you do it to avoid rent?
Usually buying a house isn't worth it unless you're going to stay for at least 5 years. Whether or not you should buy a house right now is a tough call. It mostly depends on your market. In a down market that is projected to remain down for some time, it is probably NOT the time to buy for a 5 year holding period. In that market it is a great time to buy for a longer holding period though.
But many markets are appreciating normally. In a market that is still showing normal (4-7%) appreciation, buying for a 5 year holding period is probably fine.
|
|
#10
10-01-2007, 10:13 AM
|
|||
|
|||
|
Re: If you can afford to buy a house/condo should you do it to avoid rent?
[ QUOTE ]
But many markets are appreciating normally. In a market that is still showing normal (4-7%) appreciation, buying for a 5 year holding period is probably fine. [/ QUOTE ] Is there any market showing 4-7% real gains on condos? Please specify such a market. J
|
 |
|
|
Hybrid Mode
