NEED HELP W/ DECIDING ON RENTING APT or HOME (apartment complex, rental, credit)
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This is my first post. I appreciate any participation.
Right now, my wife and I live together with 2 children. We have a 5 year plan on saving money, getting rid of debt, building credit, and moving up in my company. We wish to find a place we can live for the duration of these 5 years so that we don't have to worry about moving during the 5 year plan.
We wish to know whether it would be better to rent an apartments, where renewal is always a possibility, or to rent a home, where renewal is not so certain. I think the apartment route is best, but I thought maybe you could throw some pointers
There are noise issues in apartment buildings, and unless your children are exceptionally well behaved and quiet, you will put up with a lot of noise complaints directed at your family. You might also get complaints about your children playing outside.
A house is usually more expensive. However, if you can find a small cheap house, it it less likely that it will be sold while you live there, because those are generally investment houses.
If the small cheap house is sold, it is most likely to be sold to another investor who has bought it because it is already occupied by a good tenant.
My sister is about to get married, and she plans to have kids and raise them in a small cheap house in a semi-rural area within driving distance of good jobs. I think that's a good plan for raising kids in a nice quiet area, without paying a ton. Have you ever lived in an apartment before? The noise level can be terrible, and since you have small kids you'll either be on the top floor, causing the noise and getting complaints, or on a lower floor and hearing everyone else's noise.
Personally I would rather live in a trailer on a 1 acre lot than a luxury apartment, but that's just me.
I think you should find an area with good schools and find out what the rental options are. Nothing wrong with a family apartment complex with common playground, etc. I would prefer decent apartment on good school over rental house in marginal schools. Better quality people tend to gravitate to areas that are served by highly rated schools.
The ideal would be to find a townhome style apartment with it's own small yard for the kids. I can't imagine raising children in a 'standard' apartment! I know some apartment complexes offer townhomes though, so that's what I would keep an eye out for
How long will it take you to save enough money for a downpayment on a house of your own? How fast is your savings growing towards the down payment you will need?
If you obtain your loan under Federal Housing Administration auspices – the so-called “FHA loan,” you may get into a home with just 3.5 percent down. This still means you’ll need $7,000 in cash to put down on a $200,000 house,
If you live in a house, you might be able to save enough in 5 years, saving $1,400 per year.
If you live in an apartment, you might be able top save enough in 3 years, saving $2,333 per year.
Do the math.
Quote:
Down Payments for Conventional Loans
A conventional loan, in a nutshell, is any mortgage that doesn’t come with a federal guarantee. We’re back to the 5 percent to 20 percent down payment these days on conventional loans.
A 20 percent down payment on a $200,000 may be as much as $40,000 (20%).
If you live in a house, you might be able to save enough in 5 years, saving $8,000 per year.
If you live in an apartment, you might be able top save enough in 3 years, saving $13,333 per year.
Clearly your savings will grow faster while living in an apartment.
How long will it take you to save enough money for a downpayment on a house of your own? How fast is your savings growing towards the down payment you will need?
If you live in a house, you might be able to save enough in 5 years, saving $1,400 per year.
If you live in an apartment, you might be able top save enough in 3 years, saving $2,333 per year.
Do the math.
A 20 percent down payment on a $200,000 may be as much as $40,000 (20%).
If you live in a house, you might be able to save enough in 5 years, saving $8,000 per year.
If you live in an apartment, you might be able top save enough in 3 years, saving $13,333 per year.
Clearly your savings will grow faster while living in an apartment.
The house vs apartment decision may be impacted by the age and character of your children but just speaking economically, an apartment will not only save you rent money but utility and upkeep charges will be less, sometimes dramatically so.
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