Buy Now or Keep Renting??? (Nassau: to rent, mortgage, how much)
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We're pre-approved for a mortgage and have been shopping for a little over a month. We've had two multiple-offer situations that we've lost out on in both (even though we offered $10k above list on one of them).
I'm starting to really hate this and although interest rates are low, I don't know if it's worth getting caught up in this jumble of people clamoring over each other for a decent house that costs less than $400,000 in Nassau County, where the school districts are "middle-of-the-road"... just because inventory is so low.
I'm also starting to really wonder whether staying here is a good idea or if we should just rent a little longer and then pack up and leave (and leave family and friends behind). This probably wouldn't be feasible for another two years, but we're 28, no kids yet and feeling discouraged by the future of Long Island, even though we both grew up here. It's so sad to me to think about leaving, but I just hate the thought of how much it costs to live here and what you get for it.
I know most of you will say to leave, but realistically, would you/could you do it? Or is it just a pipe dream? The only way we could do it is if DH (teacher, on his way to becoming an administrator) got a job in another state and we had enough savings to last us until I could find a job in the new location. We can't do that yet for another 2-3 years, realistically. So, would you stay and rent for 2-3 years and save up, or buy a house now and save (at a slower pace) and then sell whenever you're ready to go? What's smarter (truthfully)?
If your goal is ultimately to leave, then I wouldn't buy a house now. But if you plan on staying on Long Island, then just bide your time. The more you wait the bigger down payment and "extra money" you have. You'll hopefully keep making more money, which will enable you to spend more on a home. Keep in mind, even though you are under no constraints as far as getting kids settled before school starts, you've chosen to look at the peak frenzy season with people who ARE under those constraints. Things will ease up once summer comes and some people think houses are priced more competitively in the fall and winter.
There's a RE agent on my "home" forum who fears that people who are buying now in the situation that you are in are going to have some regrets - they have to jump on houses right away or risk losing them. Since she deals with a lot of relocators, it's even more fraught - people are really under the gun when they are on a relocation trip.
Of course when all is said and done, I agree with you about LI's future, which is why I moved myself. If that scenario is really on the table, don't even think about buying. Looking for jobs out of state and doing the relocation thing will be soooo much easier if you aren't saddled with having to sell a house too. By the time you leave in 2-3 years you might have enough to put down 50% or more elsewhere.
If you are seriously thinking about leaving in a couple of years, I think you should rent. You should not buy a home unless you are planning to live in it for at least 10 years. (I know things can change, but you have to plan based upon something).
I have to agree with the above. Relo is much easier when there is no house to sell. Plus no kids in tow. I would look and see what employment opportunities are there and I would definitely explore a relo now before your added responsibility and home owner ship. But BUT BUT if there is a NYS pension involved that makes this a total different topic. Good luck what ever your choice is.
We were you 3 years ago. We felt the pressure of everyone saying "Buy! Buy! Now is the time! Interest rates will never be this low!" and figured everyone was right. Our intentions were to stay 7-10 years and then leave LI. So we bought a small 1000sq foot home in Nassau, affordable on one salary. 3 years later we found interest rates substantially dropped along with a slight decrease in home prices. Then Sandy hit. That sealed the deal for us to leave. Luckily, we are in a situation that we we likely be able to move out of state soon. The added burden is now we have to fix up our home, lose some equity, and then sell it so we can move.
I wish we didn't listen to all those saying it was the "perfect"'time to buy. If we continued to rent(though renting sucks in LI, very very badly) we could have had enough for a 50% downpayment on a home if not more where we are going. We aren't getting much of our equity back and with the cost of home maintenance, I realized paying a "mortgage" to my savings account while renting would have gone much further than buying a home.
I would say for those planning to live on LI forever, go ahead and buy but if this is not your plan, don't do it.
We were you 3 years ago. We felt the pressure of everyone saying "Buy! Buy! Now is the time! Interest rates will never be this low!" and figured everyone was right. Our intentions were to stay 7-10 years and then leave LI. So we bought a small 1000sq foot home in Nassau, affordable on one salary. 3 years later we found interest rates substantially dropped along with a slight decrease in home prices. Then Sandy hit. That sealed the deal for us to leave. Luckily, we are in a situation that we we likely be able to move out of state soon. The added burden is now we have to fix up our home, lose some equity, and then sell it so we can move.
I wish we didn't listen to all those saying it was the "perfect"'time to buy. If we continued to rent(though renting sucks in LI, very very badly) we could have had enough for a 50% downpayment on a home if not more where we are going. We aren't getting much of our equity back and with the cost of home maintenance, I realized paying a "mortgage" to my savings account while renting would have gone much further than buying a home.
I would say for those planning to live on LI forever, go ahead and buy but if this is not your plan, don't do it.
We're pre-approved for a mortgage and have been shopping for a little over a month. We've had two multiple-offer situations that we've lost out on in both (even though we offered $10k above list on one of them).
I'm starting to really hate this and although interest rates are low, I don't know if it's worth getting caught up in this jumble of people clamoring over each other for a decent house that costs less than $400,000 in Nassau County, where the school districts are "middle-of-the-road"... just because inventory is so low.
I'm also starting to really wonder whether staying here is a good idea or if we should just rent a little longer and then pack up and leave (and leave family and friends behind). This probably wouldn't be feasible for another two years, but we're 28, no kids yet and feeling discouraged by the future of Long Island, even though we both grew up here. It's so sad to me to think about leaving, but I just hate the thought of how much it costs to live here and what you get for it.
I know most of you will say to leave, but realistically, would you/could you do it? Or is it just a pipe dream? The only way we could do it is if DH (teacher, on his way to becoming an administrator) got a job in another state and we had enough savings to last us until I could find a job in the new location. We can't do that yet for another 2-3 years, realistically. So, would you stay and rent for 2-3 years and save up, or buy a house now and save (at a slower pace) and then sell whenever you're ready to go? What's smarter (truthfully)?
If your husband is a public school teacher, I'd be very hesitant to give up the job security that it offers for the devil you don't know in some other states where pay is lower, benefits much less lucrative, and often less job security.
As long as my wife wants to work, we are not going ANYWHERE because of her teaching job.
Why buy if the long term plan is not to stay here? It is ironic though if teachers and school administrators feel squeezed out of LI...
He doesn't teach in the public school system on LI. He teaches at a state-run children's psychiatric hospital, where the kids are patients on lockdown. Not exactly what he signed up for when he went to school to become a teacher, but he loves it nonetheless.
My question was really just about what would make the most sense to do now.
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