Should I buy or rent? I'm 45yrs old, single and thinking of buying a condo. My current rent is $900 a month.

Question

I would be interested in a 1-2 bedroom condo or townhouse. I don’t have debt (cards, car, loans). My primary concern is retiring as a renter. If I buy, I will go through NACA’s first time homebuyer program, which requires no down payment and other monetary breaks. The cities of Berkeley & Oakland also have mortgage assistance program’s that can be used in conjunction with NACA to buy the amount of the loan down. I would be looking to buy a place that I plan to live in for the rest of my life. I have about 2 year’s expenses between savings & cd’s. If something happens and I lose my job, it would be difficult to find employment at the income level with the benefits that I have. My income level is only 60k, but because I don’t have any debt, I am able to live comfortably. What I’m not sure of is if it is better to pay 2+ times more for a mortgage and the other expenses that go with home ownership, or just take my chances renting.

Answer 1

Depending on where you buy, you can either pay a mortgage and earn equity for yourself, or pay rent and build equity in someone Else's property. It is up to you.

Answer 2

some great comments here, and all correct, but again, no one thinks ahead.  Keep renting and you'll be 65 and still renting.  Here's the question I ask, will your 401k ever be worth more than a free and clear owned home.....probably not.  renting a home does not allow you to retire.  Now I do agree that either you buy right now, or you wait until at least after the election, rates are rising, but I heard a very interesting point yesterday.  What we're in now is pretty similar to when george sr left office, the tech bubble was about to crash and then the economy took off after 2 years.  I don't think the economy will take off during the first year of the new president, but the second year could be decent.  also, there is a major surplus of homes, I would wait until the election is over to buy.  This means you have time to save up for a down payment and get a credit report to address and hiccups you may have, put yourself in great position to buy.  Also get educated, know exactly what you want and how your going to get it, www.fha.gov and www.naca.com are great first time home buyer programs that can walk you through the mortgage process if you've never been, good luck

Answer 3

Homes will continue to depreciate as foreclosures rise....you may want to wait awhile,to get your best deal....plus,loan requirments are becoming increasingly rigid,without excellent credit,work history,and significant downpayment...

Answer 4

Depends where you live or want to live. If you think you can get by with a 900 dollar mortgage and no down payment you may be in trouble. I'd say just keep renting.

Answer 5

Is the condo somewhere you want to live for the next 20 years?  If not, don't buy.

Here's what I suggest:  Make sure you have these four items covered before buying a house or condo:

1) No other debts.  (credit cards, car loans, student loans, etc.)

2) Cash in the bank - 6 months expenses.

You don't want to find you got laid off three weeks after you close on the house.

3) 20% down - More cash, don't borrow this 20%.

4) an affordable condo  --  Two years salary, no more.

Especially since you'll still have to pay condo fees, property taxes, etc.

Meet all 5 of those goals, and you can buy the condo.

Answer 6

buy. In the long run, u don't want to be payin rent with ur pension when ur old.