Post # 1
Hey bees! So I’m in a bit of a sticky situation and I’d love some input from all of you.
First a little background info: I am 24 and my Fiance is 25, we’ve been living together for 6 years and are getting married this October. We are currently renting a small country home for a great price. We moved here 3 years ago for me to go to school. Well I’m graduated now, working as an RN, making great money – this area is one of the highest paying areas in the country for RNs, and I have signed a 3 year contract with the hospital that I’m working for. Fiance and I arent particularly fond of this area and we dont really envision ourselves staying here forever or raising a family here.
So here’s the dilemma: recently my landlord has sold the area surrounding my house to farmers. Our house, which was once a very quiet peaceful place, is now surrounded by field workers and work crews. For the past 2 weeks they have been tearing down ALL the trees that created this nice peaceful environment to make room for new crops. To make matters worse they are completely unprofessional and definitely not trained tree cutters – yesterday they cut down a HUGE tree that fell through our backyard fences, hit the side of the house, broke a water pipe, and destroyed our barbecue pit. A few more feet and it would have fell onto the house where Fiance was sleeping. Also. . .My house looks like crap now 🙁 So me and Fiance are talking about moving. . .
Like I mentioned above I am making really good money now and we can definitely afford to move (Before the wedding – I dunno. . ). We found a place that we love that is available now, but is $400/mo more than what we are paying now. But it is also much nicer than this place. So in this quest to find a new home I found a bunch of homes for sale in the neighborhood that we love. We’ve always been renters, but Im realizing that I can totally afford to buy a home and it would save us money! So here lies the dilemma. . . what do I do? Is paying rent wasting money? Should I just try to buy a home? We dont want to live here forever. . but I have a 3 year commitment, which will probably be more like 5 years. . I need some advice!
Post # 4
First time home buyers usually look with a mind to upgrade at some point for a multitude of reasons (starting a family, larger home for entertaining, etc) so a 5 year commitment to a first home is not unreasonable. What I would look at is value of the homes where you are looking and increases in value in the past…not always an indicator of increased value but definitely gives an idea. As well, if there are other amenities going up in an area then your value will usually increase a bit as well.
You will not usually make a lot on a house in 5 years (unless you buy a fixer-upper) but the investment is definitely worth it. Instead of rent just going to a landlord your money will be going into something that you own. Be careful as to how much you spend. Most people spend their maximum mortgage available but honestly I wouldn’t do that. I’ve seen people lose their homes when something happens…job loss, pregnancy, sickness, etc…so we spent under half the amount available to us.
There is also just a good feeling in owning your own place so I would say talk to your bank/mortgage lender, work out a comfortable budget and then jump in!
Post # 5
I don’t think you can lose buying right now. I don’t know your area, but ours is starting an small upswing. And even if you sell it in 3 yrs for the same price you paid for it now, you would have some equity. If you are renting for the next 3yrs, what will you have?
Post # 6
I think if you’re in a good position financially and it will save you money in the long run. Since you don’t plan to stay there for more than 5 years then I would just make sure to look at what your market is like, is it easy to sell or does it take months (years)? Also take into consideration all the fees of buying and selling!
@MrsTimmy: I would say Mississauga is in a huge upswing and has been for a while. Our condo is worth $50k more in just over 3 years, that’s a huge growth! I won’t even get into what some junk sells for, it’s unfortunate but thankfully the summer has slowed down a bit and hopefully fall won’t be so crazy.
Post # 7
Buying won’t save you money until the long run. You are responsible now for maintenance. If hot water system dies, you now have to find the money to buy and install a new one.
Do a lot of research. Keep your eyes on the market. Suss out houses, see how long they take to sell. You don’t want to be stuck years down the track ready to move but nobody is buying.
Also all the fees that go into buying. Start doing research now if you seriously want to buy.
Post # 8
I purchased my first home about two years out of respiratory school (when I was single and 26 years old) in a home I envisioned staying for 5-10 years. Fast forward three years, I’ve met a great guy and got engaged. We are getting married in June. We are wanting to stay in the area but move into a larger home. We are planning on putting it on the market in the spring of 2014. It is a 2 bedroom/1 bath, 1300 sq ft home and we will need something bigger when we start a family.
The thing I didn’t realize is that SO much more $$ goes into buying a home other than the monthly mortgage fees. I didn’t know ANYTHING about insurance rates (that are constantly increasing) or the property taxes (which adds $210 per month onto my mortgage – and that’s CHEAP for my area in Cincinnati, OH).
On top of the monthly fees, you’ll want to upgrade some home furnishings (even if you say you won’t, you’ll want to do some things because decorating a new home is FUN and EXCITING!!)
Long story short, if you’re only wanting to stay in the area 3-5 years. Don’t buy. Continue to rent, find something in the same range of $$, SAVE SAVE SAVE up what you & Fi can to purchase that home you can envision yourself staying in for a LONG time & raising a family.
Post # 9
@Ms. Martian: Actually we live in BC. But wedding is in Ontario. We just bought a couple of months ago, and already a few houses in the area are +$40,000 over what we paid. Our mortgage is $200 less a month than our rent was, but after property taxes is about $50 more a month. I just couldn’t bear paying all that money and not getting anything out of it. So happy we bought.