Good time to buy if moving in three years, instead of renting?

Question

Currently we are paying $635 in rural Ohio a month on rent. We are looking to buy a home for the first time. Is it a good idea to purchase a home when we will only be living in the area for 3 more years? What hidden fees are also included with the purchase of a home? We were hoping to get a monthly payment close to our current monthly rent payment.

Answer 1

Keep on renting. Why are you paying 635 to live in Rural Ohio? Are you down in Athens County? I bet you are!!! I grew up in Athens County and rent was RIDICULOUS because of OU. Move to a bigger city, rent is cheaper, and the job market is 100 times better =)

Answer 2

There are a lot of costs involved in purchasing the home, possibly 10%.  Also, the market is uncertain right now.  You should consider renting instead.

Answer 3

MAINTENANCE, insurance, taxes, etc.

buy at a good discount and build equity!

Answer 4

I would say it would only make sense if you could get an extraordinary deal. You cannot count on appreciation and you may incur selling costs that could leave you owing more than the house is worth in this uncertain market.

I think renting makes more sense for you and I am loan officer in Ohio.

If you are seriously considering buying, you may want to check out the HUD homes $100 down program. Go to http://hud1.towerauction.net/OH.htm

If you use HUD financing, this may be the best way to go. For $635/month, you are probably looking for something in the 70-75,000 price range.

Let me know if I can help you with any other questions you may have. You can contact me through the email link in my profile.

Good luck.

Answer 5

When you say “rural” in my mind that means low priced homes because demand for homes is low. In other words, selling won’t be easy.  That may not be the case where you live, but that was been my experience growing up in a rural area in the Midwest.  It’s worth thinking about before you buy though.

If you know going in that you won’t own a home for at least five years, you can usually count on having to come up with cash to sell because homes don’t normally appreciate fast enough to make up the difference between your sales price and what you’ll owe your lender and agent (or attorney).  If you can come up with at least 10% down, you*might* be able to negate this risk.

Any fees you’ll pay on a loan will be disclosed by your lender. The costs buyers often forget or underestimate are home owner’s insurance, property taxes, increased utility costs, and maintenance & repair costs. Insurance and taxes are normally rolled into your monthly loan payment. Even if you can find a home priced low enough that your payment with those extra fees is comparable to your rental rate, you’re still likely to spend more than if you were renting due to maintenance costs.

Answer 6

You won't come out on it in 3 years...seriously.

By the time you factor in Realtor commissions, closing costs, title fees, etc.

No way will you come out ahead.