Good time for me to buy a house? (BRAC; baby; etc) (short sales, apartments)

[joshtp]

Hello all,
I'm considering buying a house now near Ft Belvoir, but I have a lot of issues going through my mind.

My wife is pregnant right now, and one way or another I need to get us at least a 2 bedroom place before the baby comes in the fall. I work near Ft Belvoir, so I'm worried about when the BRAC comes in 2011 adding over 20,000 new jobs. Of course not everyone will move to the area, but it's still a concern. Rents for a decent 2 bedroom apartment are at a minimum $1500 and more like $1800, a mortgage and other expenses for a $300,000 house will not be a whole lot more.

I've tried to summarize the pros and cons of buying a house now below. Please let me all know what you think.

Pros:

1. Pretty good time to buy due to low prices interest rates.
2. Will feel safe and secure being in a home rather than an apartment. We will be able to decorate the baby's room as we please, and just generally feel good about owning our home.
3. Don't have to worry about the BRAC potentially raising prices and lowering inventory.
4. All the other typical pros of buying a house. Also, I don't really feel that having to fix and replace things would be a con, because I can fix (most) things myself, purchase quality replacements that are most cost efficient, etc.

Cons:

1. Not the greatest time to buy; prices and interest rates will probably decline further throughout this year and into next.
2. As my wife will be pregnant throughout the buying process, I'm worried about any additional stress she may take on, though I'll try to alleviate it as much as I can.
3. So many of the listings are short sales or foreclosures (hard to find ones that aren't one of these) that are very difficult to purchase.
4. We only have enough saved up for a small (less than 5%) down payment.

Thank you all for any input.
-Josh

Edit: We plan to be in the area at least for five years, or as long as my family continues to live nearby.

[Margery]

Josh,

This is a good time to buy a house if you expect to be there at least 3 years. Interest rates are low and there are many bargains on the market, especially if you are handy with repairs. Check out FHA on the web and VHDA, a program for Virginia residents only. The prospect of having her own home will ease some of the stress on your wife and women are tougher than you think. If you don't have an agent, I can recommend one in your area. A good agent will work for you and ease a lot of the stress. Best of luck in your new job.

[joshtp]

Originally Posted by Margery

This is a good time to buy a house if you expect to be there at least 3 years.

Yes, we plan to be here around 5 years. My family is nearby in Spotsylvania, and I'd like to be near them, especially for my son to know his grandfather. They are planning to move when my dad retires, in about 5 years or so, and that is when I might consider moving elsewhere.

Originally Posted by Margery

Check out FHA on the web and VHDA, a program for Virginia residents only.

I have been checking them out. Rates are decent. We first need to take one of their home ownership classes.

Thanks for your advice!

[andreaspercheron]

I have to agree, now is a great time to buy and if you have really good credit, banks will work with you. I wish you had more to put down but I'm sure with good credit you will do fine. I'm an agent (not in VA though) and I totally would buy now if I was ready. Good luck to you - incidentally I work for a naval clinic, we are on the BRAC list but I'm not military. I feel your pain!!

[springfieldva]

This is a great time to buy!! Low interest rates, fabulous selection, good prices in good neighborhoods. If you'll be here a few years - buy!

[VEIK]

You can get a decent SFH in that area for 300k?

[joshtp]

Originally Posted by VEIK

You can get a decent SFH in that area for 300k?

Not really. We're much guaranteed to have no other choice but a townhome. This is not ideal, but something we'll have to settle with for now. I foresee in 5 years us moving to Alabama, North Carolina, or a similar area, where we can then afford a big SFH with a nice yard. While our first child isn't quite here yet, we do plan to have 2 or 3 more. I'm very family oriented, and too me my job and money are WAAAAY behind spending plenty of quality time with my wife and children.

Remember, the alternative to buying a townhome is to rent a 2 bedroom apartment for ~$1800 while a mortgage payment is ~$1700 (5.5% 30 year), NOT counting all the other issues (tax savings, property taxes, HOA fees, maintenance, etc). A townhome is far more appealing to me than an apartment.

[VEIK]

Totally.

After living for years in apartments, having your own place is great.

[5stones]

The only problem i see is financing.

with only enough cash for 5% down you may have a hard time getting a loan.
The more you can put down the lower your intrest rate will be. The rates that are published are usually for 20% down.

IN calculating your mortage payment remember things like taxes and insurance. If you don't have 20% to put down you may have to have PMI and that will also raise your monthly payment.

Also I suggest IF you do buy (with a baby on the way etc...) to get an escrow account so that all your taxes etc...are rolled into your mortgage. It's easier to budget and you don't have to worry about your RE taxes not getting paid.

It is a good time to buy. Just remember the old adage...LOCATION LOCATION LOCATION. and even though you do not have school aged children, buy in a neighobrhood with GOOD schools.

[VEIK]

BOA

5% down

no pmi.