(Closed) House or Apartment??? What should we do???

posted 8 years ago in Home
Post # 3
Member
4024 posts
Honey bee
  • Wedding: September 2010

we are buying our first house. I am super excited! Its a great time to buy because the economy is still down, so house prices are low, and should raise in the near future (making a good investment for you!) The pros to a house are that you own it (duh!) and can do what you want. Paint, landscape, etc. Also, you aren’t “throwing” your money away. You are paying on something that you can sell and make a profit. As for renting, you will never see that money again. But, with renting, if something goes wrong, you just call your landlord! I think if you can though, financially, I would look into buying! 🙂

Post # 4
Member
247 posts
Helper bee
  • Wedding: July 2010

If I were you I wouldn’t jump on buying a house just because of the 8,000.00 credit. I don’t want to get in your business but you are not even engaged yet and you have been together for only a year. Anyway just rent for now, or if you REALLY are set on buying go on, it is a good time to, you can ask for anything you want (extras) and you will probably end up getting it. Good Luck!

Post # 5
Hostess
18641 posts
Honey Beekeeper
  • Wedding: June 2009

I wouldn’t get a house just because of the credit either.  You need to make sure that you have money saved up for a downpayment, and for unexpected expenses.  Houses cost more to maintain then an apartment because you have insurance, taxes, higher utilities, and of course maintenance.  I wouldn’t go into a house if you aren’t sure how long you are going to be staying.  Just because the market is down right now doesn’t mean that they are going to shoot up in the future.  Honestly, the rate of increase of value of homes usually only keeps pace with inflation, which right now is 0%.  So homes aren’t really great as investments, plus if you sell the house you still need to have a place to live so it isn’t like a regular investment where you can pocket the money.  Overall, a house is a place to live, not an investment.  If you can afford to buy a house, then go for it but if not, that’s okay too.

I think that since this is your first place together, you should really consider renting until you have been together longer (I am not saying there is anything wrong or that you are going to breakup and I’m not looking down on your relationship, just being safe).

Post # 6
Member
1288 posts
Bumble bee
  • Wedding: June 2010 - Indiana Memorial Union

Home owning isn’t profitable until you decide to sell, so I don’t really think it’s healthy to think of the place as you live, day to day, as an investment.

Just decide if you can really afford property taxes and maintenance, including surprise problems like roof leaks and plumbing catastrophes. We’re not ready to buy because we’re not sure we want to live in this area. I like the freedom of renting and not having to pay for maintenance, for now.

Post # 7
Member
1739 posts
Bumble bee
  • Wedding: July 2010

i was paying for an apartment 50 dollars less than what i pay for my house now… i bought a house last year in april and i dont regret it at all… we bought the house really cheap and after with did some cosmetic fixing the value came up… i know an apartment sounds cheaper but you are paying for somebody else… a house you are paying it for your self

Post # 9
Hostess
18641 posts
Honey Beekeeper
  • Wedding: June 2009

And I really agree with making sure you are going to be living there for a while!  We had to leave our house and rent it because the market is horrible and we can’t sell it!

Post # 10
Member
2025 posts
Buzzing bee
  • Wedding: November 1999

I probably wouldn’t buy a house yet, especially if you’ve never lived away from home and paid your own bills (you didn’t say whether you had yet). Also, unless you know 100% that you want to live where you are for at least the next 5 years, and are truly ready for all of the hidden/unexpected expenses of owning your own home, it would probably just be better to wait a while until you get more settled. 

 

Post # 12
Member
3871 posts
Honey bee
  • Wedding: November 1999

Questions…

Do you have  money for the down payment? 

After the down payment, do you have about $5k in the bank for repairs and such?

How are you paying for your wedding?  you and your future Fiance or parents?

I would go for the apartment for at least a year and see how that goes. Moving in together has its own set of challenges.  Who is going to be in charge of paying the bills?

A house is a big investment and I would rather test it out in an apartment first.

The tax break is nice but only if you are able to afford the house and also the responsibilities that go along with owning a home.

If you are in an apartment, and the stove needs to be replaced, you don’t have to pay for the new stove, the landlord does. Now in a home, you would have to pay for the new stove. 

Not to mention, homeowner association fees, insurance, taxes, plus closing costs. 

Post # 13
Member
236 posts
Helper bee
  • Wedding: July 2010

Perhaps a better way to look at the credit is like this:

If you bought an $80k house the $8k first time homebuyer credit would be 10% of the purchase price, right? But if you count in closing costs (please don’t forget about those in your upfront costs) and interest (at 5%) you are really paying about double or $160k for the home. That 8k is now 5% of what you will really pay just for the house.

Would you buy a pair of expensive shoes just because you are getting 5% off?

Post # 14
Member
138 posts
Blushing bee
  • Wedding: July 2009

There are sooo many things to consider when buying a house.  Darling Husband and I have been debating this since August, and we just now made the decision to move forward with building a home in one of those cookie-cutter suburban neighborhoods.  We’ve both lived in apartments for years, and we feel it is the right time for us to take the step.  We figured out we can get a house that is 2.5 times bigger than our apartment for just a little bit more than what we pay each month.  Plus we are tired of dealing with our upstairs neighbors who magically turn into elephants at night. 

The town we are building in is considered rural, and there is a special type of mortgage that does not require a down payment.  The mortgage is simply a way to help stimulate growth in this rural area.  Honestly, I find it amusing that the area is considered rural – our commute into Houston will average between 30 and 45 minutes, which is the average anywhere in the Houston area. 

Just be sure you think about every single factor before you committ.  We went over our budget hundreds of times before we signed on the dotted line.  We asked our parents and friends for advice, and did alot of research before we committed to our house.  Am I still scared to death?  Yes, but I think together we will be just fine.

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