Repost from Home boards--Buying vs. Renting- Woulda, Coulda, Shoulda

FH and I will be moving in together after the wedding. I live on my own, FH still lives home. Suffice to say, he is saving some $$ while I am lucky if I put a nickel away.

Anyway, we are torn.. Do we buy something, and struggle for a while? Shoud we rent, and save some $$. PS, we are not in the lucrative fields. I am a social worker, he is NYPD.

Can anyone share some hindsight with me?? does anyone wish they would have done things differently??

Re: Repost from Home boards--Buying vs. Renting- Woulda, Coulda, Shoulda

Dh & I are in sort of the same position. Neither of us make the big bucks..I work in non-profit and Dh is a driver. We are hoping to move up, but it won't happen anytime soon.

In the mean time, we are living in a tiny apt. trying to save for a house. We are looking to move out of state in a year or two. I believe we are doing the right thing, saving and paying rent rather than move into a house we can afford, but dislike. We have definite specifications about what type house we want. To buy a house just for the sake of having a house, is, for us, not very practical.

Do what you feel is best. If you are paying rent and hardly able to save anything...that might work better for you to move into a house sooner than later.

Good Luck!

Re: Repost from Home boards--Buying vs. Renting- Woulda, Coulda, Shoulda

Definitely buy. There is not reason why you can't save for a house if you buy. We bought a co-op and our mortgage is less than what rent of a comparable place would be. We save every month towards a house. We are almost there!!!! If you can afford to buy it is so worth it. You build equity and you're not throwing money away into rent every month.

Re: Repost from Home boards--Buying vs. Renting- Woulda, Coulda, Shoulda

DEFINATELY BUY if you can afford it. We bought a small place when we got engaged and after we were married sold it for over 100K more than we paid for it only 2 yrs later! Point is - real estate is where to invest so even if you stay for two years, you atleast get your money back from the equity in the house. GOOD LUCK

Re: Repost from Home boards--Buying vs. Renting- Woulda, Coulda, Shoulda

If you have the money to buy, I would recommend it. You will probably spend the same or close to the same on rent plus you are building equity and will have tax deductions because of the mortgage interest, real estate tax & interest the co-op may be paying.

Re: Repost from Home boards--Buying vs. Renting- Woulda, Coulda, Shoulda

I was in the same situation. I don't know how feasible this may be for you, but I got rid of my apartment, put my things in storage for only $150 a month (compared to $900 I was paying in rent!) and I moved in with him and his parents. I paid off some bills, put some money away, and we were able to be together while doing all this. It wasn't the easiest thing to live with his parents, but it was a sacrifice well worth it.

P.S. We still didn't have enough to buy anything, but we can probably do it in a year, instead of 5 like we origianlly thought. (I had a lot of debt.)

Re: Repost from Home boards--Buying vs. Renting- Woulda, Coulda, Shoulda

If you can afford to buy, you should. Rent is just throwing away money. BUT, I would not recommend buying a house if you think that you will have to struggle financially for a period of time. Buy a home that you can afford, not one that you will be able to afford after struggling. I have seen friends get themselves in trouble buying a house that they couldn't really afford, believing that things would be better after the next raise, bonus or whatever and then having it blow up in their face. You don't want to end up in a bankruptcy or foreclosure situation if your projections for the future don't pan out.

Figure out what it is that you can afford now and then get preapproved for that amount and don't look at anything that costs more.

I lived with DH before we were married and we hated that we had to rent for two years before the wedding. It was awful, but we knew we didn't want to get in over our heads.

Good luck

Re: Repost from Home boards--Buying vs. Renting- Woulda, Coulda, Shoulda

I don't think renting is 'throwing money away'- that is such an emotional buzz word to get people to buy- I'm sure realtors invented it!!!

You've never lived together, never 'pooled' your resources- rent for a year.... get used to eachother, spend money, enjoy your life... just don't go into debt.

just enjoy your first year of marriage without the stress of home ownership

good luck w. whatever you choose

Re: Repost from Home boards--Buying vs. Renting- Woulda, Coulda, Shoulda

if you can afford to buy a house/condo/co-op then I would recommend doing it. real estate is always a good investment in my book. good luck!

Re: Repost from Home boards--Buying vs. Renting- Woulda, Coulda, Shoulda

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Posted by Sassyz75

I don't think renting is 'throwing money away'- that is such an emotional buzz word to get people to buy- I'm sure realtors invented it!!!

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This is a pet peeve for me as well. I can never refer to a payment I make to have a roof over my head as throwing money away.

I know investment wise, it's better to buy, but there's something about that phrase that grates on me.

Re: Repost from Home boards--Buying vs. Renting- Woulda, Coulda, Shoulda

Wow, I never heard anyone refer to that phrase like that. Sorry to those I irritated and really sorry if I made anyone feel like they HAVE to buy a house by saying that renting is throwing money away.

I think that DH used to say it so much it is beaten into my head, because he was in much more of a hurry to buy than I was.

Re: Repost from Home boards--Buying vs. Renting- Woulda, Coulda, Shoulda

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Posted by Becky

Wow, I never heard anyone refer to that phrase like that. Sorry to those I irritated and really sorry if I made anyone feel like they HAVE to buy a house by saying that renting is throwing money away.

I think that DH used to say it so much it is beaten into my head, because he was in much more of a hurry to buy than I was.

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No problem Becky.

It goes into the category of 'when are you having kids?' I hear it, it irritates me and I move on.

Re: Repost from Home boards--Buying vs. Renting- Woulda, Coulda, Shoulda

Nothing personal to you Becky, really- it's just an annoying term

the funny thing- is that the same people who own homes, lease cars, which to me is the same thing as renting an apartment...

Re: Repost from Home boards--Buying vs. Renting- Woulda, Coulda, Shoulda

I understand the term 'throwning $$ away'--this is where i think it fits;

if FH and buy a condo/coop, not a house, our mortgage payment will be in the same ballpark as renting an apt of the same size.

I would rather the $$ go to a mortgage payment than rent to a landlord.

So after a long discussion yesterday, we are moving towards buying a condo/coop, rather than a house we cant afford or need so much work, or renting.

Thanks for the help

Re: Repost from Home boards--Buying vs. Renting- Woulda, Coulda, Shoulda

Didn't mean to offend, but to me it is still a waste of money if it's the same amount of money that can be put to a mortgage. Money going towards a mortgage goes towards something that you own, you can eventually sell, and that the profit can be used as a downpayment on a house. I think sassy gave a perfect example. It's like leasing a car vs. buying. This is the exact reason why we would never lease.

Amy - Glad you were able to make a decision.

Re: Repost from Home boards--Buying vs. Renting- Woulda, Coulda, Shoulda

Right, but now if I had a mortgage that was $1400 and my window broke or I needed a new toilet bowl or new carpet, or flooded my dishwasher and needed a new one, I would have to pay for it myself... whereas with renting, that is all I pay, the $1400 (that includes everything).

Not to mention, I don't know one person who buys a house/co-op/condo whatever and doesn't go house crazy and buying new things, painting, rugs etc...

I don't think renting is always a negative proposition.

Plus if you buy a condo, and the market turns, you can get screwed. I don't plan on buying until I'm in something I'm staying in- so market flucuations don't matter to me- and I plan on putting as much $ down as possible.. then I will start picking up real estate as investments (renting them to other people).

Re: Repost from Home boards--Buying vs. Renting- Woulda, Coulda, Shoulda

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Posted by Sassyz75

Nothing personal to you Becky, really- it's just an annoying term

the funny thing- is that the same people who own homes, lease cars, which to me is the same thing as renting an apartment...

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I would never lease a car I can't wait to get rid of my payments, I would not want to live with never ending car payments.

I bought a new house so when we have a problem, we call the builder and they fix it for free, so sometimes I feel like I am still renting But I live in MD. Come down here and you will all be able to buy a house!!!

Re: Repost from Home boards--Buying vs. Renting- Woulda, Coulda, Shoulda

Maryland? I'll be right over!!!

Re: Repost from Home boards--Buying vs. Renting- Woulda, Coulda, Shoulda

I'll have a bottle of wine uncorked when you get here

Re: Repost from Home boards--Buying vs. Renting- Woulda, Coulda, Shoulda

If your goal is homeownership rent on your low budget end while saving.

Some tips:
Start a separate savings account that you can both put into while you are renting. Make sure you don't use it for anything else and commit to a reasonable set amount to put into it every month.
Meet with a mortgage broker now to know how much 'down' you will need and the size of loan you will qualify for.
Don't stress about about 'have to buy now...' you will know when you are ready!