Would you buy a home?

[lucigo]

My husband recently got a civil service job 900 miles from our old home, which we still own and are renting out for enough to break even on. We are now renting a home. After living in our own home for 12 years it seems so weird to rent.

So here is my question, how long would you wait before buying? A year? 2? 5?

Would you buy if you knew you didn't want to retire here? (We are 48 and 49yo).

What other factors should I be considering?

Thanks

 

[itutorfortravel]

How long will you live there? Is it a place where you could easily rent your home after you move? Would you enjoy having a second home in your new area? Can you easily afford to carry two mortgages? Does it fit into your retirement goals?

DH and I predict that in the next 8 years our child will be moving away from home, at least full-time. We plan to sell our home and buy something smaller that we can totally pay off or just carry a small mortgage. DH and I will still be working, but we'd like to have little to no debt and house maintenance, so we can enjoy having the freedom to travel more...

We used to live in an area that is very expensive and is a vacation destination. When we moved, I quit my job to stay home with my children so we couldn't afford to keep that house. How I wish we could have, because it would have been the perfect home and community to retire to! But I like our current plan as well...it still will give us financial freedom which feels SO good!

 

[natfrac]

My DH and I faced a similar situation. We rented for a year until we figured out the area of town we wanted to live in. Since the rent on our old house does not cover the mortgage, we looked for something that would work for us now financially and would also be a good retirement home. We ended up buying a condo and the mortgage on this place is less than we'd pay in rent, so for us it was a good deal.

With home prices rebounding, I wouldn't wait a long time to buy a house, unless that would put you in a better financial position. I would also consider how rental prices compare to buying. When we went through this process, we were really concerned about have two mortgages, even if our old house was rented. There have been times when we've had to cover both mortgages, such as when a tenant vacates.

 

[lucigo]

How long will you live there? Is it a place where you could easily rent your home after you move? Would you enjoy having a second home in your new area? Can you easily afford to carry two mortgages? Does it fit into your retirement goals?

DH and I predict that in the next 8 years our child will be moving away from home, at least full-time. We plan to sell our home and buy something smaller that we can totally pay off or just carry a small mortgage. DH and I will still be working, but we'd like to have little to no debt and house maintenance, so we can enjoy having the freedom to travel more...

We used to live in an area that is very expensive and is a vacation destination. When we moved, I quit my job to stay home with my children so we couldn't afford to keep that house. How I wish we could have, because it would have been the perfect home and community to retire to! But I like our current plan as well...it still will give us financial freedom which feels SO good!

We plan to retire in Florida, either in Orlando where my oldest has started her career, or in Pensacola, where our house is and our friends are. I have no idea how long we will be here (near Richmond, VA). The job is permanent, but not close to either of our families (Maine and Missouri). We could probably rent the new house since it is close to an Army base, assuming the base continues to thrive.

Short term I would like to own a home because we want a pool and room for our dogs to run. Long term I want to retire elsewhere.

How long do you need to plan on living in a house before its feasible to sell it? There is probably an online calculator for that somewhere.

 

[lucigo]

My DH and I faced a similar situation. We rented for a year until we figured out the area of town we wanted to live in. Since the rent on our old house does not cover the mortgage, we looked for something that would work for us now financially and would also be a good retirement home. We ended up buying a condo and the mortgage on this place is less than we'd pay in rent, so for us it was a good deal.

With home prices rebounding, I wouldn't wait a long time to buy a house, unless that would put you in a better financial position. I would also consider how rental prices compare to buying. When we went through this process, we were really concerned about have two mortgages, even if our old house was rented. There have been times when we've had to cover both mortgages, such as when a tenant vacates.

That is a good point. Homes are more expensive here than in Florida. I will have to figure out how much our house payment would be if we were to buy. We have a year lease which started in September.

 

[lucigo]

On further thinking, here are my thoughts..

Find a house with a payment much lower than our current rent to maximize the investment value.

Make sure that its a really good deal so we can either sell it or rent it out when we leave here.

Get past not wanting to be here in the first place LOL

 

[2disneyboys]

LOL @ getting over not wanting to be "here" in the first place!
@ one point my realtor said something about having to live somewhere 5 years before you "recover" the closing costs etc. Also, look into to the tax implications as to owning 2 properties and then the tax consequences when it comes time to sell one or both of them. There are some very particular dates that have to apply to keep you from shooting yourself in the foot so it it clear you are selling your "primary" home not your rental property. not saying this is not a good option, just make sure you are clear on what the tax rules are going into this.. I don't like surprises

Regardless what I did, and regardless of having a current tenant, I would do my best to make sure any rent/mortgage etc was all something we could easily handle on our current budget should we run into rental problems etc.

 

[PrincessMommy05]

We plan to retire in Florida, either in Orlando where my oldest has started her career, or in Pensacola, where our house is and our friends are. I have no idea how long we will be here (near Richmond, VA). The job is permanent, but not close to either of our families (Maine and Missouri). We could probably rent the new house since it is close to an Army base, assuming the base continues to thrive.

Short term I would like to own a home because we want a pool and room for our dogs to run. Long term I want to retire elsewhere.

How long do you need to plan on living in a house before its feasible to sell it? There is probably an online calculator for that somewhere.

First of all let me tell you how jealous I am that you're going to be (possibly) retiring to Pensacola! We just left there in March after 3 years and LOVED it!

Honestly, in the market around Ft. Lee I would buy. You're going to be living there at least 10 years right? That's plenty of time to recoup money on a house. PP is right though, make sure you are clear on all of the tax implications. The base is thriving, and growing by leaps and bounds. I wouldn't think you would have any trouble selling or renting to a military family. It depends on where exactly you are though. I am from near Richmond as well, and there are definitely some areas that are more 'military' than others. I lived there my whole life and it wasn't until I was grown and married I even knew there was a base that close (less than 5 minutes from my dad's work).

 

[LJSquishy]

If you aren't sure how long you will be at your current location I wouldn't purchase a home unless you realistically think you will be there for 10+ years. You will just have to try and sell that home in not too long if you are thinking you could possibly move in a couple of years. Always consider that if your renters leave and you can't find new renters right away you will still be paying on that mortgage in addition to your own monthly rent or 2nd home mortgage. So, if you can comfortably pay for two mortgages on your own (with no help from renting one out) then I guess you can afford it.

It is a great time to buy, BUT it is more difficult for buyers to qualify so you may be stuck with your 2nd home as well if you leave. Then you would be carrying two mortgages, possibly a 3rd if you moved closer to family...doesn't make any sense.

You can find a home to rent with a pool & nice yard easily so I'm not sure how having a pool relates to owning a home.

In most cases I think you need to stay in your home for 3-5 years to sell it again.

 

[LuLuO]

It would depend on which was cheaper, renting or owning. I'd be inclined to rent though just for not having to deal with maintenance cost on a home. With the responsibilities of the first home, maintenance and such, and the possibility of the renters defaulting, I'd hate to be tied to another mortgage. But, if renting is considerably more than another mortgage then I'd look into buying if I was certain we were going to be living there for 5-7 years at least.

 

[danceintherain]

I have always heard that you should plan on being in a house 5 years before selling. With the market the way it is now, it would probably be a good idea to plan on being there longer, just in case.

Rent is usually around twice as much as a mortgage would be. You can go on zillow.com or trulia.com and compare rent prices vs. mortgages in your area.
If you're really planning on being there for 10 years, then it makes sense to buy now vs. waiting it out.

 

[lucigo]

Thank you everyone for your input!

LOL @ getting over not wanting to be "here" in the first place!
@ one point my realtor said something about having to live somewhere 5 years before you "recover" the closing costs etc. Also, look into to the tax implications as to owning 2 properties and then the tax consequences when it comes time to sell one or both of them. There are some very particular dates that have to apply to keep you from shooting yourself in the foot so it it clear you are selling your "primary" home not your rental property. not saying this is not a good option, just make sure you are clear on what the tax rules are going into this.. I don't like surprises

Regardless what I did, and regardless of having a current tenant, I would do my best to make sure any rent/mortgage etc was all something we could easily handle on our current budget should we run into rental problems etc.

Good point to look into the tax implications. Virginia has high taxes on everything before you even consider federal.

First of all let me tell you how jealous I am that you're going to be (possibly) retiring to Pensacola! We just left there in March after 3 years and LOVED it!

Honestly, in the market around Ft. Lee I would buy. You're going to be living there at least 10 years right? That's plenty of time to recoup money on a house. PP is right though, make sure you are clear on all of the tax implications. The base is thriving, and growing by leaps and bounds. I wouldn't think you would have any trouble selling or renting to a military family. It depends on where exactly you are though. I am from near Richmond as well, and there are definitely some areas that are more 'military' than others. I lived there my whole life and it wasn't until I was grown and married I even knew there was a base that close (less than 5 minutes from my dad's work).

Our home is actually in Pace, FL if you know where that is, just across the bridges from Pensacola. We had been there since 1998. Pensacola has a very close knit autism community and although I'm slowly finding things here, its not the same. Realistically however, my husband fell into a really good job here that he loves, and I know I should embrace that. Ten years is realistic, whats holding me back is my emotional attachment and not wanting to be here, so its easier to think 5. Maybe in 5 it will be easier to think about 10.

The house we are renting now is in Colonial Heights, very close to his job and shopping, which is wonderful for our gas bill. I'm thinking we would probably buy either in this area or Prince George. We have australian shepherds and would like enough room to be able to really THROW a frisbee! LOL We have an acre in Florida and I miss that.

If you aren't sure how long you will be at your current location I wouldn't purchase a home unless you realistically think you will be there for 10+ years. You will just have to try and sell that home in not too long if you are thinking you could possibly move in a couple of years. Always consider that if your renters leave and you can't find new renters right away you will still be paying on that mortgage in addition to your own monthly rent or 2nd home mortgage. So, if you can comfortably pay for two mortgages on your own (with no help from renting one out) then I guess you can afford it.

It is a great time to buy, BUT it is more difficult for buyers to qualify so you may be stuck with your 2nd home as well if you leave. Then you would be carrying two mortgages, possibly a 3rd if you moved closer to family...doesn't make any sense.

You can find a home to rent with a pool & nice yard easily so I'm not sure how having a pool relates to owning a home.

In most cases I think you need to stay in your home for 3-5 years to sell it again.

Right now, a month after an expensive move we aren't in the position to be able to pay for both houses comfortably. A big factor in that is my decision to homeschool our son with autism, which takes away from my medical transcription time, but as we get into the groove that is getting better. I'm taking this month now that we are over moving expenses like two sets of utilities, to keep track of every penny spent and make up a long term budget and see where we stand. My husband is making a lot more money than in Florida, but then we have to figure out what are new expenses are for things like utilities and gas, and our rent is $600 a month more than our house payment. We have no idea how much winter costs! LOL I am going to HAVE to include a decent traveling budget in order to stay sane, with family in MO, friends in Pensacola, and a daughter in Orlando.

It would depend on which was cheaper, renting or owning. I'd be inclined to rent though just for not having to deal with maintenance cost on a home. With the responsibilities of the first home, maintenance and such, and the possibility of the renters defaulting, I'd hate to be tied to another mortgage. But, if renting is considerably more than another mortgage then I'd look into buying if I was certain we were going to be living there for 5-7 years at least.

Less maintenance is a good point to consider, although I have to tell you I also worry about "messing up" someone else's house, if you know what I mean. If its yours its much easier to go buy washable paint for the walls, or put a pool in the back yard without worrying about what someone else thinks. We did purchase a home warranty for our Florida home to help us cover unexpected maintenance, and the rent is $200 more per month than the house payment.

I have always heard that you should plan on being in a house 5 years before selling. With the market the way it is now, it would probably be a good idea to plan on being there longer, just in case.

Rent is usually around twice as much as a mortgage would be. You can go on zillow.com or trulia.com and compare rent prices vs. mortgages in your area.
If you're really planning on being there for 10 years, then it makes sense to buy now vs. waiting it out.

Thank you for that tip, I will check out zillow. In a year when our lease is up we will have a much better idea of how big of a house we need/want, and whether we want an investment house or a more forever house. I have a 21yo DS and 17yo DD still living at home. Will be interesting to see if they will want to stay in VA or go back to FL. DS21 is taking his classes online this semester to finish up his AA at Pensacola State. We had considered him staying in our Florida home but he wanted to experience living somewhere besides Florida, seeing 4 seasons, etc.

Again thanks for the input, you have given me much to think about! There is a house exactly like this one about 4 houses up from ours with an inground pool but not enough yard and doesn't back up to woods like this one. I know its not "the one" but its close enough that it makes me think about it! I did the math and the payment on it would be $200 less than our rent here, so not remarkably different, plus I had to guess on home insurance rates as I'm sure they are different than Florida.

 

[Judique]

Right now, a month after an expensive move we aren't in the position to be able to pay for both houses comfortably. A big factor in that is my decision to homeschool our son with autism, which takes away from my medical transcription time, but as we get into the groove that is getting better. I'm taking this month now that we are over moving expenses like two sets of utilities, to keep track of every penny spent and make up a long term budget and see where we stand. My husband is making a lot more money than in Florida, but then we have to figure out what are new expenses are for things like utilities and gas, and our rent is $600 a month more than our house payment. We have no idea how much winter costs! LOL I am going to HAVE to include a decent traveling budget in order to stay sane, with family in MO, friends in Pensacola, and a daughter in Orlando.

[/COLOR]

Sounds like you've just arrived! Welcome!

Give yourself some time - well, I guess your one year rental will do that.

You will find that it is expensive to live here - much more so then in Florida.

I am sure you will adapt to that.

Buying the second home is a gamble, so after a year or so, you may have a better idea of how long you can stay here - until retirement time - or until another job comes along. Then, if you plan on 10 years plus (or until retirement) buying a home may be your best option.

Good luck and enjoy this area. It has a lot to offer - just a bit different then what you've come from.

 

[StuckInKS]

My husband recently got a civil service job 900 miles from our old home, which we still own and are renting out for enough to break even on. We are now renting a home. After living in our own home for 12 years it seems so weird to rent.

So here is my question, how long would you wait before buying? A year? 2? 5?

Would you buy if you knew you didn't want to retire here? (We are 48 and 49yo).

What other factors should I be considering?

Thanks

We have always rented and have wasted so much money doing so. The rent always seems to be $400 to $500 higher than a mortgage would be on the same home. One thing that would sway me to buy, if I didn't plan to live there forever, is what kind of deal I could get. If I can sell it in a few years for equal to or more than what I paid plus save over what it would cost me to rent a similar place then I'm in. We bought a home in March for $13k and spent $5k on new paint, flooring, counter tops, sinks and tub. It looks new inside anf out (we were lucky that it had good siding and newer roof) and just as good as the similar-sized home we rented for $1000 a month. When we move and sell it it will be no loss to us and may even be profitable.

 

[sookie]

Until you sell the old one, realistically you may not be able to buy a new one because it may be seen as a liability.