does this sound like a good idea? (renters, house, foreclosure)

[*~Kim~*]

So I'm a little obsessed with looking at houses online lol. We are planning to start looking at houses in 3 yrs. It's a long way off...yes I am crazy, but I look at the listings almost everyday to see what is out there. We know that we want out of the city we are in now before our oldest goes into middle school (4th grade here) and we know we want to stay in MA, but other than that, I don't know where to live! Our budget is SUPER low, since I am not working (well, I babysit, but that is off the books) and we will have to qualify for a loan solely on DH's income, which is not much. (But I know it is smart to qualify for a loan on one person's income, so you don't get in over your head) I am getting discouraged. It seems like every house we can afford is a short sale or foreclosure or in need of major repairs. I really don't want to deal with that stuff. We are fine with a small ugly house that needs cosmetics, but we are not handy people lol.

Right now we are renting, and my dad is the landlord. So we pay VERY low rent. That is helping us pay off our debt and save some money.

But I am starting college this month! And when I finally finish and start working, we will be a 2 income family and will be able to afford a better home in a better community/school system....but that won't be for 6 years or so (I am part time). And we need to get out of this stinky school system asap! So here is my new thought.....what if we rented a home in a town that we would like to live in ideally, do that for a few years until I am working and we can afford to buy in that town. Is that a good idea, or is it better to buy a house somewhere a little less desirable and just get what we can get so we don't waste our money renting? Thoughts?

Sorry this is so long!!

[chet everett]

If you are able to rent in a nicer town, utilize the better schools, have kind of the "inside line" on well priced homes that may become available I would NOT consider that "throwing my money away".

It does not make sense to own a house in a town you would not live in, especially if you are not handy and won't be able to follow the path of "DIY Upgrades" that can be the best way to make money on a house...

I would caution that "stretching" happens even with renters, and if you OVERPAY for rent it is just as bad / worse than overpaying on a mortgage.

You gotta shop smart, but it can work.

[lawmom]

I think it's a good idea to rent in a town where you like the schools and would want to eventually own in.

[ShaneSA]

Sounds like a good plan to rent in the area where you want to buy. that way you will know for sure it is the place you want to own and if not, you can find somewhere else. Also, renting in the area you want to live will give you inside information of what is for sale and how the area is progressing.