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I'm a new guy here and just starting to familiarize myself with the real estate market in the US.
We moved to Cary from abroad and work (me and my wife) in RTP.
we've been renting since, we pay $1050/mo. for a very nice 2BR. apartment in a very nice community(NOT including any utilities.)
Our plan is we'll live here in the triangle for 5 to 6 more years before we move back to our home country.
Of course we hate paying so much money for rent coz it just goes down the drain.
The question is.......if we buy a house about a year from now ( we need to take it easy, learn more about the market and all available options, we don't want to rush things), and then try to sell that house after 5 years.......would that make financial sense ?
could we make any return on investment in those 5 years ? or is that too short of a period to build equity and for the price to appreciate ?
i understand the market is down now and there are forecasts that prices could plunge for the next year or two so this might be a good time to buy a nice property and get a good fixed interest rate.
Of course i understand these are just forecasts and anything can happen.
I really would like to hear what you think.......
would it make financial sense for us to take that step /??
You may be paying more than necessary for rent. We pay $830 for a 1200 SF 2BR in a good community with heat pump for low utilities.
If anyone knew how real estate would do in this turbulent economy, they might also have the numbers to play for Powerball this week.
Things are very uncertain with the dollar falling and an election coming up.
If you're sure you won't be staying permanently, you might try to get a better rent deal and not tie up your money in an asset that may or may not appreciate. A tech bust could send the yuppies running home leaving a flurry of foreclosures behind.
Only a prophet could tell how the economy will behave in the next 5 years.
Greetings! I am moving to the Triangle area next year and would like to find a clean, safe place to rent for the first year. Any suggestions? thank you so much. mkemper
1) For the money you spend in rent, you could EASILY own
2) With a mortgage, at least the interest is tax deductible
3) If you sell after 2 years, you're not subject to capital gains
4) Even if the house NEVER appreciated, and you break even when you sell, what is the harm? You're GUARANTEED to walk away with $0 if you rent, but you may be able to eek out a few thousand (and probably more) if you own for 5-7 years, which is the typical amount of time you should own before you sell.
Based on the above, I would rather own my own place. Basically, if you wind up breaking even on a sale, then all you've done is rent from yourself, which is better than giving the money to someone else, IMO
Greetings! I am moving to the Triangle area next year and would like to find a clean, safe place to rent for the first year. Any suggestions? thank you so much. mkemper
I'm the (volunteer) community watch captain at Northridge Crossings.
Convenient and safe. Right by Triangle Town Center.
Big, big apts with fair rent. Diverse community and everyone gets along.
1) For the money you spend in rent, you could EASILY own
2) With a mortgage, at least the interest is tax deductible
3) If you sell after 2 years, you're not subject to capital gains
4) Even if the house NEVER appreciated, and you break even when you sell, what is the harm? You're GUARANTEED to walk away with $0 if you rent, but you may be able to eek out a few thousand (and probably more) if you own for 5-7 years, which is the typical amount of time you should own before you sell.
Based on the above, I would rather own my own place. Basically, if you wind up breaking even on a sale, then all you've done is rent from yourself, which is better than giving the money to someone else, IMO
Good Luck in your decision!
Well, there's another factor to consider.
You may not break even if the area economy slumps. I owned a place in New Orleans in the late 1980's. It dropped 50% in 2 years when oil hit a bust. I then got laid off by the local electric utility and came to NC with a 30% pay cut. Worked out for the best but took years to do so.
Had to abandon home and file Chapter 7 to get out from under the mortgage.
Let's all hope that won't ever happen here, but a major tech bust, heavily leveraged yuppies with no longtime ties to NC, and a precarious economic outlook could combine to form the "perfect storm".
Ok, thanks for all who gave their opinions
another question though.......
being an apartment guy all my life, i don't know what are the additional costs of owning a house.
i mean, how much taxes and insurance should i expect to pay ?? what kind of regular maintenance tasks need to be done ? and how much should i expect to pay for them ?
just need to get a whole picture on the total cost and add it to the monthly mortgage payment to see what we can afford......basically IF we can afford it altogether.
The usual recommendation is that if you are buying you should intend to stay in the home 2-3 years. Of course this varies on the economy, price range, rates, etc. But if its <2-3 years its unlikely you will make a profit or even break even unless you are buy right and get lucky. For 5 years, its usually a safe bet... but there is no guarantee with any investment.
There are tax deductions and personal reasons to buy a home, so consider those as well. There are pros and cont to both renting and buying homes.
Taxes and insurance both vary by price range you are looking at, the county, etc. You can search online for tax records for both Wake and Durham Counties. If you pick up for sale fliers on homes you are interested in they often have estimates on them based on what the owners pay, sometimes including electric and water costs.
Maintenance costs depend on if you are buying a condo, town home or house. Condos and town homes have less maintenance, but a home owners association usually charges dues to keep common areas clean and do landscaping. Also... if you are putting <20% down do not forget to include mortgage insurance on your estimate. This too varies with credit, down payment and loan amount.
It can add up so make sure you do good estimates and use a Realtor or Mortgage Consultant to advise you of all the costs, benefits and terms assoicated with buying a home. Good luck!
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Maybe you could help
