(Closed) Considering moving out for the first time, should I rent or buy a place?

posted 3 years ago in 20 Something
Post # 2
Member
334 posts
Helper bee

Buy. Don’t rent. It will chew your money up and leave you with nothing. I wish I could afford a house.

Post # 4
Member
973 posts
Busy bee
  • Wedding: July 2015

I would normally suggest buying, too, from the investment perspective.  But actually, with it being your first time on your own, I think you should really consider renting for at least a year (maybe 2).  After living in my first couple apartments, I had a much better idea about what I actually liked and made me most comfortable and my “must have’s” vs my “watch out for”!  

I’d never thought too much on it beforehand, but living (by myself) in my own place gave me that chance to find myself in more ways than expected, too.  

Plus honestly, I didn’t want the upkeep and maintenance of a house for a couple years anyway.  So renting and having landlords and apartment complexes responsible for that was great.  

it might be nice to rent for a little bit as a transition period for you and you can see how things go with the Boyfriend or Best Friend too (and wait on the house thing until maybe you know a little more about that future together?)

Post # 6
Member
67 posts
Worker bee
  • Wedding: September 2016

Mlim:  agree with renting first. A couple of years in a rental won’t eat up too much money in the long run– you have a long life ahead! Just find something affordable so that you can keep saving around 10% of your income.

Post # 7
Member
6533 posts
Bee Keeper
  • Wedding: June 2015

Mlim:  You will be wasting money either way.  Since you know you won’t be moving (I knew that too and moved 2000 miles, incidentally), you could buy a really cheap starter home.  Your savings aren’t enough to have a really big down payment, especially since it’s very important to have a savings buffer in case something goes wrong in your life..  That means you will be paying a load of interest over the years on your mortgage.  Example:  our mortgage payment is just over 1200 a month. At the moment, 400 of that goes straight to interest, 160 to escrow and only 700ish to our principal.  So just about half of what we pay goes elsewhere – right down the drain.  That was with a hefty down payment and we’ve been working on our mortgage for two years now.

If you buy, I absolutely recommend having a rent-paying roommate to help cover that bill.  Cheaper house means lower total compared to mine, of course, but it’s still a lot to take out each month.  

If you rent, as mentioned above, you can get good ideas about what does/doesn’t work for you in a home before you spend your money on one.  While yes that’s money down the drain, it would be anyway in the long term and you can build up your savings a bit.  I learned a lot over the course of 5 rentals: fences, proximity to roads and towns, dog neighbors, thinness of walls, drafts, kitchen organization, bathroom space, heating bills, you name it.  Better now than to buy a house later without realizing it holds heat inefficiently or the water pressure sucks or your dog can easily climb over your fence (yes I had a rental like that and it was a pain).

Post # 8
Member
9177 posts
Buzzing Beekeeper

Depends on the real estate market where you live. If prices are low and you could get a nice 2-bedroom in a nice area for around $200k, then it could be a good investment for you. 

Post # 9
Member
1670 posts
Bumble bee
  • Wedding: April 2018 - Our Backyard

I would rent first, especially since you and your Boyfriend or Best Friend are serious. Wouldn’t it be more fun to have a cute apt on your own now then get to go house hunting with your husband later? Plus, this will give you an idea how much it costs to live alone without the commitment of owning a home (plus, home ownership opens a-whole-nother can of worms-upkeep, repair, etc.) exciting times! 

Post # 10
Member
357 posts
Helper bee
  • Wedding: May 2016

Try buying a condo/apartment. Mine was only $129,000 and a 2 bedroom. condo fees only $320 a month. Then when you do get married, you can sell it at a profit and buy your first home together.

Post # 11
Member
4254 posts
Honey bee
  • Wedding: August 2015

I would rent first…AND live on your own.  I get that you want to live with your boyfriend, but a year or two living by yourselves, without parents, will be good for you.

Post # 12
Member
1628 posts
Bumble bee
  • Wedding: January 2016

I’d buy and rent out the second bedroom. I’d make sure to buy something that I can comfortably pay the mortgage and upkeep on my own, while still putting money into retirement accounts. Take advantage of the current low interest rates- no telling what they will be in five years.

good luck!

  • This reply was modified 3 years, 4 months ago by  robsbeach.
Post # 13
Member
7383 posts
Busy Beekeeper
  • Wedding: June 2013

It’s hard to give advice without knowing what housing prices are like in your area. I wouldn’t be comfortable spending more than $25k (maybe $30k) of that $40k and I was insistent on putting down 20% so if houses are around $125k I would at least take a look at what’s out there. 

ETA: after thinking through it some more, you will need to furnish the house right? Since you haven’t lived alone before? That combined with keeping an emergency fund doesn’t seem to leave much for a down payment. I would sit down and make a detailed budget. Not only for the actual purchase of the house with the money you have saved but also for living expenses.

Post # 14
Member
3062 posts
Sugar bee
  • Wedding: November 2016

Mlim:  Buy. I agree renting would be a waste. He would be paying rent to his sister or to someone if he was on his own. So it being in your name shouldn’t matter. My Fiance and I were house buying before engagement. He wanted me on it but I did not want to be on it until we were married. I would have no hard feelings if we broke up and having paid what I do each month.

Post # 15
Member
3905 posts
Honey bee
  • Wedding: January 2017

Mlim:  buy anything, it will grow in value and you can sell it when you guys decide to move in together and there will be more $$ to put as the down payment. Renting is litterally money down the drain, your wastimg money making someone else richer… so if you can afford to buy anything just buy, you can always rent itnout later if you dont want to sell… having real estate is the best investment always.

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