Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
So my Wife and I are entertaining the idea in two year's once we build the savings up moving to another State.
We are at a bit of crossroads because the Wife wants to buy a house and sell it after 5 years make some equity off of it.
Where I want to rent. Now buying a house upfront the cost is less, 25% less a month, the not upfront cost could possibly be more.
With that said we are sure about moving to another State after comparing the cost. Pay will not be any different for me about $8 an hour difference for my Wife. However, more job opportunities for the Wife and can lead to full time opportunities. Rents will be 25% less, homes will be 40% to 60% less where we are looking at, and higher education cost will be 75% less. Gas and taxes will be the same. Utilities and groceries will be slightly less, about an extra $100 a month in savings.
Few things think buying a property as a way to save money is smarter in the long term or setting a budget actually putting money in a savings is the better opition?
Does moving to another State sound like a better financial move?
I think you are saying that although your family income will take a hit you more than off set that in savings. So based on financias only it makes sence.
We are at a bit of crossroads because the Wife wants to buy a house and sell it after 5 years make some equity off of it.
The rule-of-thumb I have seen is that given the expenses of selling a house, the minimum time frame should be at least 7 years to buy vs rent. Also, if you are moving to a new state, unless you already know the area, it is usually recommend to rent first, to make sure you buy in a neighborhood you really want to live (and you want to stay in the new state).
I feel if we buy in our current State we are going to be locked into that home. We are either going to have to turn it into a rental which can add up in cost. Also going to have to pay for maintenance cost on the house and any emergency cost.
Where I rather rent then rent in a new State or buy in a new State. Okay taking the risk of buying in a new State over renting due to larger square footage. (We probably go in with the Mother-In-Law buy a large house, have 3 incomes, and a larger savings).
MIL and Wife are hesitant like that rule of thumb they don't know the area.
That is true. Just where we currently living feel it is very challenging to make litte headway financially since pay is the same but cost of goods and services is about 40 to 50 percent higher. It is a tough sell.
So my Wife and I are entertaining the idea in two year's once we build the savings up moving to another State.
We are at a bit of crossroads because the Wife wants to buy a house and sell it after 5 years make some equity off of it.
Where I want to rent. Now buying a house upfront the cost is less, 25% less a month, the not upfront cost could possibly be more.
In your situation I don't thing buying is a good financial decision. Of course anything can happen in five years. You might make money, you might lose money, or you might be so underwater that you cannot afford to move.
Are you including maintenance costs in those numbers that say owning is 25% less? It seems most new homeowners underestimate the cost of keeping a house in working order. For us, in a good year we spend probably a couple of thousand on maintenance, and in a bad year it can be twenty grand or more. Granted we have a big house, but even with an average sized home the numbers can be half of what I mentioned. Appliances, hot water heater, a/c, roof, paint, garage doors, windows, water leaks, etc, etc. It seems every few months something breaks or needs regular maintenance.
One thing to factor in for first first time homeowners is that they don't usually factor in other costs for the house beyond the price of the house. So make sure you tack on all these costs before deciding. I agree renting for the short term is a better idea.
So my Wife and I are entertaining the idea in two year's once we build the savings up moving to another State.
We are at a bit of crossroads because the Wife wants to buy a house and sell it after 5 years make some equity off of it.
Quote:
Originally Posted by RunD1987
Yes and yes
I feel if we buy in our current State we are going to be locked into that home. We are either going to have to turn it into a rental which can add up in cost. Also going to have to pay for maintenance cost on the house and any emergency cost.
So, if you need two years to build up the savings to move to another state, it doesn't seem that you'll have that built-up savings if you buy a house now in your current state. In that case, how long would it then take you to save up to make that move? Additionally, if you need two years to save up to move, it would appear on the surface that you may not be in a financial situation to carry two mortgages. Renting it out could help, but you'd have to evaluate that. You might also want to tool around on the renting forum to see if you actually want to be a LL. You'll also probably want to use a property management company, so factor that into costs as well.
Personally, I'd move to the other state in two years and buy then.
One thing to factor in for first first time homeowners is that they don't usually factor in other costs for the house beyond the price of the house. So make sure you tack on all these costs before deciding. I agree renting for the short term is a better idea.
That's why I say there be back cost to owning a home. I figure extra $100 a month with regards to savings for maintenance and emergencies.
That's why I am a proponent of buying in our home State where we could live elsewhere making roughly the same pay with lower COL.
As long as the house appreciates more than your interest, upfront loan costs, costs to sell and maintenance along the way, sure. Hope the economy in five years is in a position where you're able to sell. My vote is too risky.
So my Wife and I are entertaining the idea in two year's once we build the savings up moving to another State.
We are at a bit of crossroads because the Wife wants to buy a house and sell it after 5 years make some equity off of it.
Where I want to rent. Now buying a house upfront the cost is less, 25% less a month, the not upfront cost could possibly be more.
With that said we are sure about moving to another State after comparing the cost. Pay will not be any different for me about $8 an hour difference for my Wife. However, more job opportunities for the Wife and can lead to full time opportunities. Rents will be 25% less, homes will be 40% to 60% less where we are looking at, and higher education cost will be 75% less. Gas and taxes will be the same. Utilities and groceries will be slightly less, about an extra $100 a month in savings.
Few things think buying a property as a way to save money is smarter in the long term or setting a budget actually putting money in a savings is the better opition?
Does moving to another State sound like a better financial move?
Appreciate the insight.
OP, how much money do you currently have in savings?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
