Helpppppp!!!!! My Fiancé and I are getting married in less then 4 months. We are looking around for a house. We are unsure if we should rent a house or buy a house? But, don't know how long we will be living in our area for? Any advise?
If you're unsure about how long you'll in the area, renting would make more sense. However, without knowing where you and FS are located, your financial situation(s), etc., it's kind of difficult for us to provide any advice/suggestions.
I would rent for a year or so if you're unsure of how long you'll be in the area. We re-located to a new area last July for jobs and wanted to make sure we loved our jobs and the area before purchasing a home. We rented a house for about 10 months and learned about other cities nearby that we loved and just purchased our first home last month!
It definitely sucks to rent (we had been renting in some capacity since 2012) but it allowed us to save some money on the side for our down payment and we could take our time to find the perfect house. It all depends on y'alls personal situation
If you are not sure how long you will be in the area, I'd rent. However, I always viewed renting as a HUGE waste of money. Literally throwing money into someone elses mortgage. If you have the means to buy and you plan to stay around then buying is 100% the smartest financial option. It's an investment in yourself and also typically less expensive than renting.
With wedding being so expensive I would suggest renting especially since you are unsure of how long you would stay there. FH and I plan to rent until we find a home we can probably live in forever and raise a family in but until we start having kids we are happy in the house we are renting.
It depends on the area you live in. Where I live renting is a lot cheaper than a mortgage. If you live in an area where renting is similar cost then you need to think about if you have enough in savings if something needs repaired or if you need a new roof or air conditioner etc. I have a couple friends that bought because mortgage was similar to monthly rent but then didn’t have money to fix things if something broke.
Obviously if you don’t know if you’re staying in the area, buying might not make sense at all.
I also wouldn’t buy a house on a strict 4-month timeline, because you want to take the time to find home that works for you longer term & that is also well priced etc.
Lastly & most importantly, whether you should buy or rent depends on your financial situation. Things to consider are: - Do you have any other debts at the moment? - What portion of your monthly income goes to paying those debts off? - If you had a mortgage & one of you loses a job (for whatever reason that might be beyond your control) will you be able to make payments on time & if yes, for how long? - Do you have 20% to put as down payment? While you can for sure get mortgage with smaller down payment, there are many benefits of 20% down payment such as paying less for your home overall, not paying PMI, getting better mortgage loan interest rate & making a sound financial decision overall.
You probably shouldn't buy a house with a 15-30 year mortgage if you don't know how long you will be in the area. Save yourself a headache and just rent. Some places will even allow month to month, 6 month or year leases.
Yes, mortgages can be cheaper than rent these days, but that is for a 30 year commitment in most cases. Don't get stuck with a mortgage if you don't know how long you'll be somewhere. Buying a house is a big risk.
It depends on a lot of factors. Others have mentioned things such as rent vs monthly mortgage payments being a big one. Other things to consider are if you have enough for a down payment. The standard down payment is 20%. However, you can put less down, but you will need to pay monthly PMI (mortgage insurance) until you reach that 20%, so that is an added monthly expense. If you use the FHA first-time buyer's program you only need 5%, but then you can only get rid of the PMI payment by refinancing, so that would be another step. Also, you have to factor in taxes, homeowner's insurance, and the cost of repairs and maintenance in a home, as well as utilities such as garbage and water, which usually come included in rent payments. Lastly, general advice is to not buy if you will be selling the house in 5 years. While there is never a guarantee that you will make money on the sale of a house, buying and reselling within 5 years (barring any exceptional spikes in the market) will very rarely yield any sort of increase in revenue and may lead to a loss.
Personally, my fiancé and I are buying a house. We know we will be so thankful when we have one completely ours, but I will say it has added quite a bit of stress on top of the busyness already. But we also plan to be staying in the area. If you’re unsure maybe renting is a better option 🤷🏻♀️
We are going to rent for a bit longer after we get married. I follow Dave Ramsey and his baby steps to get out of debt so I'm focusing on paying off all of our consumer debt (while cash flowing the wedding) and then will save up a larger emergency fund/ house down payment. I highly recommend him if you have any interest.. You can read all about him online and on YouTube for free. I totally understand the feeling of "throwing away rent money", but a few things have gone wrong in the house we rent over the past few years that we would probably not have the funds to cover if we were the owners, so I try to look at it that way. I know I'll buy a house eventually, I just want to have the money to do it comfortably some day I agree With the others above too about figuring out what areas you like and want to live in.
If you don't know if you are going to stay in location you are in, I would def just rent. We bought our house in 2017 thinking we were going to stay here. Now almost two years later and my FH is getting a really awesome job about 2 hours from here and are considering to sale our house and buying over there.
Or you can buy a cheaper house, fix it up and sale it and make profit.
If you’re testing the area I say rent unless you’re able to buy a house you later plan on investing and make profit. I don’t know the market in your area but where I am is not the time to buy since everything is very inflated at the moment. If you rent I recommend something small and cozy for your two. Is easier to settle and adjust to each other.
Rent until you are sure where you are living. Then compare mortgage to rent costs. Also remember a home comes with repair costs that your landlord typically covers. If you both aren't handy or knowledgeable about repairs and ownership take some basic home owner courses, cities typically have them and will have first time buyer courses too. Rent until you're sure and take advantage of any courses for first time buyers before you do anything, it's a good learning experience.
Eh, I don't totally agree with that. You are absolutely never stuck anywhere, even as a homeowner. You are not "required" to live in that house for 30 years by any means. We bought a house, lived there for 3 years, and then my husband was offered a job unexpectedly in another state. We had to take the job so we sold our house and bought a new one.
I'm always pro-buying because it is typically more cost effective and financially responsible as its an investment into yourself but you are absolutely never stuck unless the market flips on you and you owe more than what it is worth, but that isn't common these days.
We lived in our first home for 3 years and still made a great profit on it because the market is in a great place where we live. (NE FL).