I’m getting married in May 2009 and plan to buy or rent a hose by about that time. I can’t rent an apt, it has to be a house for enough space for my home business.
IF I buy, I’d really like to buy way under my means at around 0-140K (already approved for 5K in August) and pay it off really quickly. Using calculators and such, I estimate I could pay off that entire mortgage in 3 years (no car payment, no kids, tight spending).
I want to stay here in VA for 3 more years so I can stay closer to our two families just a bit longer, but all our lives we have wanted to move further south where it is much warmer (both seasonal depressants when it comes to winter).
In 3 years when we do move, it will definitely be a more permanent home.
So in these 3 years, should we rent or buy (with the intention of fully paying off the house before we move)? The market here has not experienced a decline really and my realtor friend says the average around this area remains at 6-8% appreciation each year, but he could just be *saying* that.
thanks so far guys, thats been good info.
I’ve been doing some more math, and with just living in the house for 3 years then selling, it would be throwing away about ,000 on interest, tax’s, and insurance. Even if the house value went up a few %, any maintenance needed and closing cost’s would eat that profit entirely away. (all math on a 0K home with K down at 7.25%)
The only principle I’d get back out of it in the best case scenario I see would be about 00 in payments to principle from the 3 years. In total spending k in 3 years, and coming back with 00 (from principle).
So if I can just find a rental for K over 3 years (00 a month) and just invest the K down payment, I’ll actually make off way better eh? Or maybe I can ask the rental owner for a 5% break if I pay 2 or 3 years up front?
I guess the only other question I could propose would be if I bought a foreclosure at a really good deal and sell it with a 10-15% gain? or buy a fix’er upper or even fix up the foreclosure and gain 10-15% in 3 years?
The outlook for mortgages in the future is not bright. You may not be able to find a qualified buyer in three years. It might be a better idea to save for the more permanent house.
I am with maxmom the housing market is a big mess and why would you want to gamble your hard earned money that way. Also Real estate agents are the biggest clowns when it comes to tring to sell a house. they all say what you want to hear. then when the chips are down they are no where to be found.