Buy a house in the metro area? (Minneapolis: real estate, apartment)

[Minneapolis Guy]

Would you pull the trigger now if you were on the sideline renting an apartment? My fiancee and I are more than capable of buying a home, we just don't want to jump on a sinking ship. We are thinking that it may just be better to wait until the spring. Its not that we want to buy a home to make a profit, its just that we plan on moving away from Minneapolis in 3-4 years(moving to Bismarck if we can find decent paying jobs) and don't want to have to pay to get out of our home. We also don't want to live in an apartment for the next 3-4 years either.

[Sarah Maske]

You can find some really good deals in the metro area - BUT if you're planning on moving in less than 5 years, you need to be extra careful about where you invest. Talk to a good Realtor who knows the market and the areas where your investment is best protected. There is ALWAYS risk no matter where you buy in today's market. An agent can help weigh the risks with you - then you can decide if buying or renting makes more sense. Good luck!

~Sarah

[Slig]

I would buy a house right now because since the government bailout of Fannie May and Freddie Mac the mortgage rate immediately dropped half a percent point. Take advantage right now and you'll save thousands of dollars in interest payments on your loan. It is unclear how long the mortgage rate will stay that low so I'd strongly consider pulling the trigger before a correction is made.

[lazy_d]

Here's a handy calculator that could be of help in your decision. Good luck!
http://www.nytimes.com/2007/04/10/bu...T_GRAPHIC.html

[Minneapolis Guy]

Thanks for the help so far. We do have a real estate agent and I have used one of those rent vs. buy calculators about 5 times now! And yes, the interest rates are awesome right now!

IF we decide to buy now, I'm still not sure if we should buy now or wait until the spring. I just a saw a report recently that said 9% of households are behind on their mortgages, more foreclosures will just drive down the prices further.

[moving123456]

I am waiting for these lines to stop heading down. People with 5 year ARMs from 2005 still haven't seen their interest rate increases.

[aperfectbass]

If you're on the fence, and maybe considering a move in 3-4 years, I would take a look at a standard amortization table. You don't put much of anything down on the principle in those years. My wife and I are in a similar situation (we know we won't be here in 6 years) and for us it just doesn't make sense.

[Minneapolis Guy]

Originally Posted by aperfectbass

If you're on the fence, and maybe considering a move in 3-4 years, I would take a look at a standard amortization table. You don't put much of anything down on the principle in those years. My wife and I are in a similar situation (we know we won't be here in 6 years) and for us it just doesn't make sense.

Good to hear from someone in a similar situation. We want a house so bad, ultimately I know it would make the most sense to keep renting and watch the money pile up that we would have been spending on a house.

Also, thank you for the chart Moving.

[sfw1979]

Originally Posted by Minneapolis Guy

Good to hear from someone in a similar situation. We want a house so bad, ultimately I know it would make the most sense to keep renting and watch the money pile up that we would have been spending on a house.

Also, thank you for the chart Moving.

Here is a great site that gives you estimated value of the home as well as the last purchase price. www.ziprealty.com

[nick is rulz]

If its a place for less than $125k in a "transitional" neighborhood, sure. If its anywhere else where you cant get it for less than a $500 mortgage payment, dont bother.