First-time homebuyer - I'm confused!?

Question

Does it really make sense to buy a 2 bedroom home when you truly want a 3 bedroom? I'm currently in a 3 bedroom rental property and I'll have to scale down some items to make the 2 bedroom work. The 2 bedroom is $125K and has MONTHLY homeowner's dues of $93.00.

My friends and family think I can find a much better deal for that price or if I were to buy it to just sell in 2-3 years. Is that smart? I live in the South so with the price and 2 bedrooms, does this really sound like a "good deal?" Or shall I keep looking for what I want now which is 3 bedrooms and a lower HOA fee?

Answer 1

you need to wait until you are ready for a house that you want.... its not a good deal if you are not happy in it... buying a house for a 2-3 year investment is not a good idea because no one knows what the market is going to do.. the financing fees will also get you if you move so quickly.... stay in your rental and save up more money in those 2-3 years and you can get a house that suits your needs

Answer 2

first, you need to be happy with what you purchase, it's a buyers market so if you don't find what you want, walk.  I personally think you're playing a very dangerous game if you buy then sell.  This is not the market for that, even here in the south.  There are pockets here that are holding values, but I can't see the benefit.  If you buy and go 30yr fx, with property values still falling and a gluttony on the market, you may not clear the purchase price when you sell. I would generally say an arm mortgage might be an option, but that scares me even more as it most likely would put you upside down by the time you sell.  A 15 yr fx could be an option, but again, your equity in the home probably wouldn't be enough when it came time to sell.  I would wait to find something you fall in love with, you've worked to hard for your money not to

Answer 3

I would not recommend buying for 2-3 years, not in this iffy market anyway....

If you want to buy with todays housing market chaos, buy with the intentions of living there at least 10 years. I doubt the market will be chaotic for 10 years! But you should prepare for it... Remember, it's a buyer's market, not a seller's. So you likely won't be able to get out of your home as quickly as you got in it...

good luck.

Answer 4

From purely an investment perspective, it is easier to resell a 3 bedroom rather than a 2, there is more people in the market for a 3 bedroom.

Take advice from friends and family with a grain of salt, they mean well, but in the end, it's your money.

In general HOA's can be a PITA, you might want to find a home that isn't in a subdivision.

I'd suggest you keep looking and not "settle" for something you won't be happy in.

Answer 5

Since you are the one who is making the purchase, you should do what ultimately feels right for you. I don't think you should buy a property with the idea that you will sell it in 2-3 years. You cannot be guaranteed that your property will appreciate enough to cover your transaction costs.

If I were you, I would keep looking until you found what you really want (a 3 br.) at a price you feel comfortable with. Try not to be pressured by what others think.