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CaidensMommy
My 3 Miracles!
Member since 5/05 5777 total posts
Name:
Melissa
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WWYD? Rent or Buy?
We currently rent. We need a bigger place. Would you stay another year and try to buy something next year or rent something bigger for the time being and buy something even bigger than you can afford next year in 3 years instead? I don't want to rush into buying but we definitely need a bigger place regardless. If we stay where we are, it's cheaper than renting something bigger, but we really need the room now? WWYD? 
I think I'm feeling more comfortable with looking to rent something bigger for now and worry about buying something later on. We want to make sure we get what we want in need in our next house.
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Posted 5/25/12 10:28 AM  |
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Long Island Weddings
Long Island's Largest Bridal Resource | Prudential Douglas Elliman Real Estate |
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Re: WWYD? Rent or Buy?
Right now, the interest rates are SO historically (and artificially) low, there's still a huge selection of homes on the market, and prices are still relatively low. So if it's possible for you to buy now, I think you should!
When you buy, monthly payment is everything in terms of determining affordability, and the rates play a HUGE role in that. Also, there's a lot of talk among economists now that prices will be going up soon. So I think if you wait 2-3 years, you won't be able to afford nearly as much house as you can buy now.
Also, there are a lot of tax benefits to owning v. renting. Your mortgage interest, which makes up the bulk of your monthly payment, is tax deductable, as are your property taxes. And, of course, there's no crystal ball, but I think prices will start increasing over the next few years, so people who buy now will be able to build equity in their homes.
Of course, you need to be comfortable with your decision. And all of the above being said, buying may not be the right decision for you right now. But if I were you, I'd speak to a mortgage professional, find out whether you currently qualify for a mortgage and what the costs would be for you to buy at certain price points. Once you get comfortable with the financial piece and know it can work, then you can see what you could buy in your price range, if you chose to buy now. There's no harm in getting educated before dismissing the idea of buying.
Let me know if I can help. I can recommend a great mortgage person, or just chat with you about the buying process in general or answer questions you may have.
Message edited 5/25/2012 10:38:45 AM.
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| Posted 5/25/12 10:38 AM |
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summerbaby11
LIF Adolescent
Member since 11/10 779 total posts
Name:
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Re: WWYD? Rent or Buy?
^^ ITA with the above. If you can afford to buy now, the rates are amazing and the tax deductions are great. IMO it's really always better to own if possible. But if you're not ready, that's another thing. Good luck whatever you decide!
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| Posted 5/25/12 3:45 PM |
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blu6385
Member since 5/08 8351 total posts
Name:
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Re: WWYD? Rent or Buy?
this is our position kind of. We currently rent and we need a bigger place. everyone keeps telling me to buy and i have really been so hesitant about it. But after searching for bigger houses to rent we decdided that the amount of money we will pay for rent plus utilites we might has well buy cause the renting prices equal a morgagte!
That and with the fact that housing is quite low comapre to a few years ago and the fact that i was told interest rates are qutie low we finally are taking the plunge!
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| Posted 5/25/12 4:10 PM |
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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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Re: WWYD? Rent or Buy?
I'd buy something before the interest rates and prices rise again
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| Posted 5/25/12 4:48 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: WWYD? Rent or Buy?
rent
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| Posted 5/25/12 6:51 PM |
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acadia
LIF Zygote
Member since 12/11 48 total posts
Name:
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Re: WWYD? Rent or Buy?
I would say make a list of the pros and cons of both situations. Interest rates are low/prices are low but owning a home also comes with a lot of extra responsibility and headaches. But you have to make the decision best for you. You can always start looking for a home and see how it goes.
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| Posted 5/25/12 8:02 PM |
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spooks
So in love!
Member since 6/06 4378 total posts
Name:
Sarah
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Re: WWYD? Rent or Buy?
I'd take a look n see what's out there. Are there homes that look desrable to you in your price range? With the rates so low it would be good to buy. If there's decent homes to look at - maybe start there before deciding?
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| Posted 5/25/12 8:39 PM |
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evrythng4areason
And then there were 4
Member since 1/10 5224 total posts
Name:
Kayla
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Re: WWYD? Rent or Buy?
i would buy, without a doubt
the money you put into rent could be put into something that you own
honestly, our monthly payment plus taxes/insurance are about the same we would be paying to rent out our house..but we own it, and the money is going towards us, not towards paying someone else's mortgage
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| Posted 5/26/12 7:18 AM |
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Watever143
LIF Adult
Member since 12/10 1537 total posts
Name:
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Re: WWYD? Rent or Buy?
we are going through the same thing ...we started looking into a house yesterday and met a real estate agent and looked at one hosue yesterday...sorry to take over your post but everyone keep talking about low interest...if i cant buy a house right now but maybe in 6mth to a year will the interest rate still be low??? could we lock something in without buying a houseyet??
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| Posted 5/26/12 9:21 AM |
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Re: WWYD? Rent or Buy?
Rent.
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| Posted 5/26/12 9:47 AM |
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Re: WWYD? Rent or Buy?
Posted by Watever143
we are going through the same thing ...we started looking into a house yesterday and met a real estate agent and looked at one hosue yesterday...sorry to take over your post but everyone keep talking about low interest...if i cant buy a house right now but maybe in 6mth to a year will the interest rate still be low??? could we lock something in without buying a houseyet??
You can't lock an interest rate until you are in contract on a home and have a good idea that it will be closing soon. Most rate locks are only good for 30 days. If you lock for a longer period, you usually need to pay (in some form -- points, fees, etc.) for doing the longer lock.
It's hard to say when the rates will go up... they did go up a slight bit recently, but then came back down. There's no guarantee that the rates will still be low in a year or two. Also, "low" is relative. When I bought in 2008, rates were in the low 6s, which was historically low (in early 80s, people talk about 18% interest rates!). But now they are around 4%, even high 3s for an FHA loan.
To give an idea of the impact of rates, when we refinanced in 2010, we dropped our rate about 1.5 points, and it lowered our monthly payment by around $435!
Or to put it in other terms, if you have a 4% rate and a 30 year loan, you pay $4.77 in principal and interest per month for every $1K of your mortgage. So for a $300K mortgage, that's $1431/month (JUST for principal and interest... not taxes, insurance, etc.). If the rate goes up to 6%, and you have a $30 year loan, it's $6 in principal and interest per month for every $1K of your mortgage. So with the same $300K loan, you will be paying $1800 month just for principal and interest.
Of course, buying is not the right choice for everyone. I rented for many years in Manhattan, and we bought on LI when the time was right for us. Some people never want to buy at all, and that's ok.
However, if someone is considering buying a house in the near future ... say next year or two, the time to buy would definitely be now. Even if you have a smaller down payment -- with FHA you only need 3.5% -- and need to pay mortgage insurance, I think it's still worth it to by now and take advantage of the high inventory, relatively low prices, and very low interest rates. It's just a great time to get a foot in the door of home ownership, with the affordability conditions being so great!
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| Posted 5/26/12 11:16 AM |
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Lauren82
LIF Adult
Member since 10/06 4580 total posts
Name:
L
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Re: WWYD? Rent or Buy?
If you can swing it, I say buy. We bought a house and pay less per month than we did renting. For us, we're saving more here than we could in our rental (and it was from my in-laws, so it was a "deal").
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| Posted 5/26/12 11:36 AM |
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Hope2009
Thankful
Member since 1/09 4429 total posts
Name:
A
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Re: WWYD? Rent or Buy?
I think this a question only you can answer. Only you know what your financial situation is. yes, the rates are low but it you have the extra money to pay the monthly payments then it's not worth it kwim?
on the other hand if have enough for a down payment and you can make the payments it's a great time to buy.
Another think to consider is how is credit score? if it's bad then hit wouldn't work for you.
I'd say get a pen and pad and write everything down, what you pay out every month, how much comes in, what your savings are like etc. Then you can decide from there.
Good luck!!! 
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| Posted 5/26/12 2:41 PM |
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fairybug
LIF Infant
Member since 5/12 71 total posts
Name:
T
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Re: WWYD? Rent or Buy?
from your previous posts over the years, you have money issues and i thought you filed bankruptcy. i don't think you could buy right now with a low rate, in your case, you are better off renting.
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| Posted 5/26/12 7:26 PM |
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Sassyz75
Turning a new page
Member since 5/05 9731 total posts
Name:
Dina
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Re: WWYD? Rent or Buy?
we rent...
right now we don't need to move because we have enough room (although we'd like a little more for a play room and a proper back yard).
with that being said, we're definitely waiting to save more money. There is no way, with taxes, we can get even CLOSE to what we are paying now in for a place comparable in size to what we are renting. It would be easily $700-$1000 more a month to buy.
No one has a magic ball, but watching CNBC every morning, the news about the global economy isn't good. European Country after European Country is having banking problems. Major blue-chip stock are laying of a lot of their employees.
I don't think the economy is going to rebound that fast.
And if interest rates suddenly came up (if the Fed allowed them too, which I just highly doubt given the state of the economy) house prices would go down further.
There are a LOT of houses on the market- mores than qualified buyers to purchase them.
What happens in 2 - 3 years, I don't know... but I doubt we're going to get a price acceleration to match what happened in the bubble.
Message edited 5/26/2012 9:00:09 PM.
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| Posted 5/26/12 8:59 PM |
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Re: WWYD? Rent or Buy?
Posted by fairybug
from your previous posts over the years, you have money issues and i thought you filed bankruptcy. i don't think you could buy right now with a low rate, in your case, you are better off renting.
I agree. I've noticed you post a lot about your money troubles amongst other things that have exploded in your life lately. You also mentioned in your OP "buying something bigger than you can afford". That's a huge red flag you're not ready IMHO.
I know you live out of state though, where in some cases, it can be the same or less to buy.
The question is not for us to answer though. You would need to meet with the bank and see if you are going to even be approved for a mortgage.
If I had to do it all over again, I would've waited to buy.
DH and I now have a very small starter house by "LI standards" and if we sell, we are going to be lucky to break even.
With taxes, we are paying about $1250 a month more than when we were renting which is a pretty big chunk of change IMHO.
Message edited 5/28/2012 7:15:31 PM.
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| Posted 5/28/12 7:13 PM |
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MrsS1976
LIF Adolescent
Member since 5/11 534 total posts
Name:
M
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Re: WWYD? Rent or Buy?
Rent.
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| Posted 5/29/12 1:33 AM |
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Janice
Sweet Jessie Quinn
Member since 5/05 27567 total posts
Name:
Janice
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Re: WWYD? Rent or Buy?
rent
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| Posted 5/29/12 8:20 AM |
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DML
LIF Adolescent
Member since 5/05 567 total posts
Name:
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Re: WWYD? Rent or Buy?
I would see if you could get preapproved, and for what amount. I would then see what the monthly payments would be, and can you afford them. And then I would see if I could get what I wanted for a house. But with your financial past, it might be hard to get preapproved -but you won't know until you try.
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| Posted 5/29/12 8:54 AM |
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JDubs
different, not less
Member since 7/09 13160 total posts
Name:
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Re: WWYD? Rent or Buy?
you also have to keep in mind all of the other costs associated with owning a house... including all the maintenance like if something breaks and needs repair. Plus taxes always go up each year. But, the rates are ridiculously low and houses are a lot less costly then when we bought a few years ago, so now you could possibly afford something within your means. I guess you just seriously have to crunch some numbers and see what makes sense for you.
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| Posted 5/29/12 9:11 AM |
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lilacwine
only love...
Member since 5/05 2034 total posts
Name:
<3
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Re: WWYD? Rent or Buy?
Posted by mzsocialworker1
Posted by fairybug
from your previous posts over the years, you have money issues and i thought you filed bankruptcy. i don't think you could buy right now with a low rate, in your case, you are better off renting.
I agree. I've noticed you post a lot about your money troubles amongst other things that have exploded in your life lately. You also mentioned in your OP "buying something bigger than you can afford". That's a huge red flag you're not ready IMHO.
I know you live out of state though, where in some cases, it can be the same or less to buy.
The question is not for us to answer though. You would need to meet with the bank and see if you are going to even be approved for a mortgage.
If I had to do it all over again, I would've waited to buy.
DH and I now have a very small starter house by "LI standards" and if we sell, we are going to be lucky to break even.
With taxes, we are paying about $1250 a month more than when we were renting which is a pretty big chunk of change IMHO.
Same here.
Also, think about what you "need" vs. what your true needs (not wants, not nice to haves, not what everyone else has) are.
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| Posted 5/29/12 7:30 PM |
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