Any sense in buying a house (vs renting) if you're planning to move in 1-2 yrs?

posted 11 months ago in Home
Post # 16
Member
2580 posts
Sugar bee
  • Wedding: November 2012

Does your husband’s company include paying closing costs and realtor fees for selling a house with their relocation package? 

If not, then maybe consider doing what my husband and I did when we were sick of renting. We purchased a duplex and rented out the other side. Our tenants paid the majority of the mortgage while we lived there and then when his company relocated us to Texas we just found tenants for our unit and now have an income property that gives us an extra $500/mo after mortgage and associated bills are paid (snow plowing, trash removal, etc) plus a property that is worth about $40,000 more than what we paid for it a few years ago. 

Post # 17
Member
266 posts
Helper bee
  • Wedding: May 2012

I’m a landlord, and yes, you should certainly call him out on that crap he’s been pulling! If i ever need to come in without 24 hour notice, and it’s not an emergency, I ask and make it clear they can tell me no. Can you show him or refer to your lease and/or city laws that require 24 hour notice or more? And I agree with a PP, print out the lease and/or laws, and have them on hand if he unexpectedly shows up again, so you can point out exactly why he can’t do what he’s doing.

What I would do in your situation is find a rental and ask for a 2 year lease so you are locked in longer.

Post # 20
Member
2182 posts
Buzzing bee

View original reply
tiffanybruiser :  Yeah, unless you’re in a great market, it’s probably a risky investment. NYTimes as a rent vs buy calculator you could play with if you really wanted to buy.

But, the good news is you’re done with this crappy landlord in a few months and most likely, your next will be more like the ones you’ve had in the past without drama.

Post # 21
Member
1533 posts
Bumble bee

I wouldn’t do it, it’s very expensive just to buy a house, if you have to do that twice in one or two years plus sell a house you could be looking at around 30-40k+ of fees at least, if not more than that depending on the value of the houses. I would just find somewhere else to rent and then buy when you have moved to a more permanent location. 

Post # 22
Member
1208 posts
Bumble bee
  • Wedding: City, State

I wouldn’t buy if I were in your shoes. I also recommend renting from a larger landlord. You get a lot of the “it’s my house”/ unprofessional/ illegal behavior from the folks who own 1-3 apartments, vs the landlords who own 20. 

Post # 23
Member
3428 posts
Sugar bee

While there are fees associated with buying, the kicker is the agent’s fee when selling.  If you can afford to lose the 6% realtor fee or if you think the home will appreciate enough to cover that in 1-2 years time, then go for it.  

 

 

 

Post # 24
Member
11340 posts
Sugar Beekeeper
  • Wedding: City, State

View original reply
tiffanybruiser :  

Not usually.  You are unlikely to recoup not only your costs of buying, moving, repairing, and other miscellaneous expenses that come with ownership.  Stuff breaks.  It can be very expensive to fix.

Even if values are skyrocketing right now, they may nosedive in the next year or two.  Real estate is always cyclical, and a lot of variables can impact the cycle.  Even experts can’t be completely certain what the market in any particular area will look like in 12-24 months.  

As a PP mentioned, the costs of selling a house can really eat into any profit you may be anticipating.  Commissions take the biggest chunk.  Buyers and lenders often demand that repairs be made. If the demand is made by a lender, plan on spending the money.  The next buyer’s lender will probably have the same requirements.

One or two years is very unlikely to get you to the break even point, unless your market is en fuego and stays that way for an abnormally long time.

 

Post # 25
Member
1059 posts
Bumble bee
  • Wedding: July 2013

Don’t buy with intent to sell in such a short time span. Yes you have landlord hassles, but selling is huge hassle too

Post # 26
Member
794 posts
Busy bee
  • Wedding: August 2019

I don’t have much to add other than empathy…renting sucks. Even when you rent from a larger company. I had a maintenance guy call me to tell me my cat got out (there was a note in the work order about the cat, so he knew to look for her) and in the same call, lectured me about how I need to call them ASAP about repairs (apparently the back fence was loose from a storm the night before, so we hadn’t noticed). Like, thanks dude. Real cool. 

We’re in a sort-of similar boat in that we don’t especially like where we live, and are open to moving, but with academia, there’s no real rhyme or reason to when you get a job (it can happen in 3 months or take years). We haven’t prioritized home ownership until now, and therefore haven’t saved for it (focusing more on retirement/travel/debt). It’s getting really old. 

Post # 27
Member
9398 posts
Buzzing Beekeeper

I wouldn’t, but I’m also super risk averse. In retrospect, it would’ve been okay for us since we’re in a hot market. But that’s with hindsight being 20/20 and all. I definitely wouldn’t have gone into it knowing we’d need to sell again in such a short time.

Post # 28
Member
9381 posts
Buzzing Beekeeper
  • Wedding: October 2013

i’ve heard from various people in real estate.  either flip a house within a year or live in it for 7-10+ years to make it worth it to buy.  otherwise, renting seems your best option.

Post # 30
Member
940 posts
Busy bee

View original reply
tiffanybruiser :  depends on your areas market. Homes normally appreciate in value, and after a couple of years, it may be nice to sell it and get soemthing out of it possibly?

 

I mean, you guys are plannign to move all your belonging anyway. Get soemthingwhere you build some type of equity and are able to sell it. Or become landlords to a duplex where you pay a lower amount, as if if you were renting an apt, and then sell it after those two years and get tax breaks. 

 

P.S. realtor fees are worth the amount. Usually HO’s who wish to sell dont sell in the time they need to because they dont have the mls,. or much resources, and also, buyers that know you dont have a realtor will end up raising the offering price bc of it. This is if you consider buying. Im all about putting my hands on real estate IF it makes sense. 100%

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