To rent or to buy that is the question?

Question

Ok so here is my story: I am getting married in 10 months. We are currently living at home. We both have never lived on our own, so we never had any rent or any responsibility. We are both 27. We are thinking of buying a townhouse/condo very soon. The only thing is our money is tied up in an investment and we don't have access to it right now. I think it's very important to be on our own soon so that we can experience and get used to living with each other and handling money together, etc. I was thinking if maybe we could just rent an apartment for a year. 1) this would give our investment time to sell( it's two houses) 2) we will be able to live together handle money and get used to it. What should I do? We don't have downpayment right now to buy anything. I'd love to buy a place but I just don't know what to do!

Answer 1

YOu don't have to put money down to buy a townhouse.  But you will know when the time is right to "buy" and i don't hear it yet.  Renting gets you freedom.  Rent for a while. /

Answer 2

I think you should rent for a year or more, let your investments sell and become comfortable with living on your own, handling money and balancing you bills. While you are just renting you also get to see what life is going to be like with your partner that way if things are not as you thought they would be you wouldnt have to go through the courts or anything to divide the house and other assets since you are just renting.  

Answer 3

Being new in a marriage and first time on your own is allot of stress. Owning doubles that when things break down and you have to have repairs done. Initially would rent take the time to really get to know each other without added stress and workload. (Owning is allot of work) Enjoy the bliss of your first year or two then make the dive. Congratulations by the way may you have many years together. (for me and wife now 27)

Answer 4

Jen,

You seem to have answered your own questions nicely.  Your idea to rent a place while waiting for your investment to clear is not a bad idea at all.  The only (further) advice I would give you would be to figure out how to keep your investments.  

Obviously I do not know your situation in any detail, but I do know the housing market is terrible for sellers at the moment.  Owning your own home is a nice dream, but it drains money away from things like investment properties.  If you can keep the investment properties for a few more years you are probably going to see a turn around in the market.

If you are going into the Condo/Townhouse arena you may as well rent anyway.  There is no sense in paying a condo owners association fee on top of the mortgage, especially because you already have a pair of houses.  That is money you never get to see again, similar to rent.  

In the Boston area renting a condo is about 1/2 the monthly outlay of buying a similar unit after mortgage and owner's fees are assessed.  In some places it is almost as low as 1/3.  If you can save a large sum of money between the two of you the down payment might take care of itself without having to sell your investments.

That’s my financial advice.  The only thing I'll add on the marriage front is congratulations.