(Closed) To rent or own? Or wait? Advice and input wanted! (Long :( )

posted 6 years ago in Home
Post # 4
Member
1828 posts
Buzzing bee
  • Wedding: December 2013

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
Member
986 posts
Busy bee
  • Wedding: November 1999

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
Member
2233 posts
Buzzing bee
  • Wedding: September 2012

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
Member
533 posts
Busy bee

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
Member
1408 posts
Bumble bee
  • Wedding: June 2013

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
Member
986 posts
Busy bee
  • Wedding: November 1999

@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.

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