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

posted 8 months ago in Home
Post # 31
Member
1295 posts
Bumble bee

Instead of renting from the direct owner, I would try to rent through a property management company (single family home, condo, apartment…whichever). 

Property management companies can have their flaws, but at least they wouldn’t be a disgruntled homeowner/landlord griping about it being their house. 

Post # 32
Member
308 posts
Helper bee
  • Wedding: July 2020

I’m selling my house after 5 years and if everything goes according to plan I’ll make a decent profit, but honestly if I had to sell it at 1-2 years I would have lost money.  6% realtors commission, extra fees/taxes, paying to fix things the buyers want if you agree to do that… It can be a significant cost based on the price of your home.  And you have to look at if you are in a hot market as you would want that value to go up, being able to sell for more than you bought it for.

Also you have to think of all the work you need to do to get the home up for sale.  I’ve worked my butt off cleaning, making repairs, spending money on these things, and there is always something that breaks just when you think of selling!

Is it possible to rent an apartment at a bigger complex where there is a professional management company?  It might be more cookie cutter and not as charming as renting a house, but I think it would be sufficient for 1-2 years until you move to your next location.

Post # 34
Member
81 posts
Worker bee

I agree, not worth it unless you are buying to live in now and rent out when you move. I have had my fair share of horrible landlords. Larger apartment buildings with a rental agency or on site manager were much easier to deal with! Good luck!

Post # 35
Member
995 posts
Busy bee

You will usually end up paying 10% of the sales price in broker commissions & closing costs as the seller. So in order for you to just break even on the house purchase, you need to be in a market where houses are appreciating 5-10% per year.  Just to not owe money when you sell.  And that doesn’t include any expenses like moving, home repairs that a landlord would cover if you rented, etc. 

 

There’s maybe a half dozen cities in the world where it *might* make sense to buy knowing you’ll sell in 2 years. Keep in mind in the US we are a decade into a good economy post-recession and from a historical perspective, we’re about 3 years overdue for a recession.  I wouldn’t be buying anywhere right now if I needed to sell in less than 5-7 years. 

Post # 36
Member
6320 posts
Bee Keeper
  • Wedding: September 2016

tiffanybruiser :  I would still look into purchasing, depending on the market you are in.

I also recognize that I say that as a CA, Bay Area resident where the people who owned our home before us saw the value appreciate 200k in 2 years of ownership and I saw that same house appreciate another 90k after just 1 year of ownership.

Leave a comment


Find Amazing Vendors