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Old 04-16-2015, 04:47 PM
 
Location: Great State of Texas
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I would definitely suggest renting for one year before even thinking about buying.
Use that year to explore and see if the place is right for you.
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Old 04-16-2015, 05:38 PM
 
Location: Backwoods of Maine
7,118 posts, read 8,163,742 times
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I second the idea of Tennessee! We recently bought a vacation property there, in rural central TN. You could definitely get a nice place there in your stated price range, and possibly less. The COL is low compared to the northern states, and the people are welcoming and friendly.
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Old 04-16-2015, 05:42 PM
 
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ty and yes I have owned before. Owned a town home. That is a good idea Happy Texan. So are you saying it's going to cost more than 500 a month for mortgage if home is in the 70-85k price range? And if so where would a safe area be to rent for me and 77 yr old mom? You think we could find an apt. or home to rent for less than mortgage payment? And in a safe area? Because I know you can't around here. Thx for advice.
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Old 04-16-2015, 06:09 PM
 
Location: Eastern Washington
14,261 posts, read 44,955,618 times
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Quote:
Originally Posted by HappyTexan View Post
I would definitely suggest renting for one year before even thinking about buying.
Use that year to explore and see if the place is right for you.
Good idea. Better yet would be to lease-option a place if you can get someone to do that deal - you sign up to rent the place for say a year, at the end of the lease you and the owner can work out a purchase, or another lease, or you can move on.

Also keep in mind that Tennessee has at least 3 distinct regions - call them east, west, and central - each is a little different.

If you can afford to take a tourist trip that might help you get ideas.
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Old 04-16-2015, 09:14 PM
 
8,980 posts, read 8,120,601 times
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I am going to talk as a professional that spent decades in the real estate business.

It will be cheaper to rent than to buy. The operating costs of a cheaper single family home, is what will ruin you at your income.

My wife and I have a 3,700 sq. ft. luxury home on 5 acres across the county road from the best part of our small town. We have a buyer standing by that wants to buy it (her parents live across the lane from us, and we are thinking more and more about selling and moving to Billings Mt, and getting a nice apartment. Even though the home is in great condition, it can only stay that way with the regular infusion of cash to keep it that way. We can sell the home, and live in a very top end apartment from the proceeds the rest of our life and give up keeping the home up, and still leave a nice chunk of cash for our kids when we are gone.

I was a specialist in real estate investment property. I made a statement in front of a group of Investment Real Estate Brokers and Investment Advisors I was speaking to. I told them that it is always without an exception cheaper to rent than to buy. They challenged me to prove it on a big marker board. That is the easiest thing to do. They gave me the figures on an upscale home one of them was planning on selling, and buying a bigger fancier home which he had done every 5 years. And the going rental costs for a upscale home. When I got done the person whose house we used said he was convinced. He was an investment advisor handling accounts for well to do people.

I saw him a few weeks later. He had sold his home. He had leased a far nicer home than the one he had owned and much nicer than the home he was considering buying. He leased it on a 5 year lease, and put the difference in costs between the rent and what he was figuring would be his payments on the other home, plus what would have been the down payment, and the rest of the proceeds from the sale of the home into a savings plan.

He had twice as nice a home as he had presently owned which was super nice executive home. The home his wife was hoping to move up to in 5 to 10 years. His savings were building up faster than any potential increase in value. The owner was paying for any needed upkeep on the home, so he saved a bundle there over time. He started to teach what I had taught him to his clients, and they started selling their homes, and leased something nicer for less money, and invested the profits from the sale of their home in other investments.
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Old 04-17-2015, 08:54 AM
 
47 posts, read 31,154 times
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Quote:
Originally Posted by oldtrader View Post
I am going to talk as a professional that spent decades in the real estate business.

It will be cheaper to rent than to buy. The operating costs of a cheaper single family home, is what will ruin you at your income.

My wife and I have a 3,700 sq. ft. luxury home on 5 acres across the county road from the best part of our small town. We have a buyer standing by that wants to buy it (her parents live across the lane from us, and we are thinking more and more about selling and moving to Billings Mt, and getting a nice apartment. Even though the home is in great condition, it can only stay that way with the regular infusion of cash to keep it that way. We can sell the home, and live in a very top end apartment from the proceeds the rest of our life and give up keeping the home up, and still leave a nice chunk of cash for our kids when we are gone.

I was a specialist in real estate investment property. I made a statement in front of a group of Investment Real Estate Brokers and Investment Advisors I was speaking to. I told them that it is always without an exception cheaper to rent than to buy. They challenged me to prove it on a big marker board. That is the easiest thing to do. They gave me the figures on an upscale home one of them was planning on selling, and buying a bigger fancier home which he had done every 5 years. And the going rental costs for a upscale home. When I got done the person whose house we used said he was convinced. He was an investment advisor handling accounts for well to do people.

I saw him a few weeks later. He had sold his home. He had leased a far nicer home than the one he had owned and much nicer than the home he was considering buying. He leased it on a 5 year lease, and put the difference in costs between the rent and what he was figuring would be his payments on the other home, plus what would have been the down payment, and the rest of the proceeds from the sale of the home into a savings plan.

He had twice as nice a home as he had presently owned which was super nice executive home. The home his wife was hoping to move up to in 5 to 10 years. His savings were building up faster than any potential increase in value. The owner was paying for any needed upkeep on the home, so he saved a bundle there over time. He started to teach what I had taught him to his clients, and they started selling their homes, and leased something nicer for less money, and invested the profits from the sale of their home in other investments.
Wow very informative. thx for replying. Guess I'll just look for an area where I can afford to rent. And hope it's a safe one. lol
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Old 04-17-2015, 02:13 PM
 
47 posts, read 31,154 times
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Quote:
Originally Posted by lovepoker View Post
Wow very informative. thx for replying. Guess I'll just look for an area where I can afford to rent. And hope it's a safe one. lol
But that's the problem. I can't lease something for less money. Obviously, I'm not well to do. I can buy for cheaper than I can rent. That was my reasoning.
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Old 04-17-2015, 02:14 PM
 
47 posts, read 31,154 times
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All I am looking for is somewhere I can afford to live until I die. Maybe there is nowhere. lol
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Old 04-17-2015, 03:54 PM
 
Location: Eastern Washington
14,261 posts, read 44,955,618 times
Reputation: 12872
Quote:
Originally Posted by oldtrader View Post
I am going to talk as a professional that spent decades in the real estate business.

It will be cheaper to rent than to buy. The operating costs of a cheaper single family home, is what will ruin you at your income.

My wife and I have a 3,700 sq. ft. luxury home on 5 acres across the county road from the best part of our small town. We have a buyer standing by that wants to buy it (her parents live across the lane from us, and we are thinking more and more about selling and moving to Billings Mt, and getting a nice apartment. Even though the home is in great condition, it can only stay that way with the regular infusion of cash to keep it that way. We can sell the home, and live in a very top end apartment from the proceeds the rest of our life and give up keeping the home up, and still leave a nice chunk of cash for our kids when we are gone.

I was a specialist in real estate investment property. I made a statement in front of a group of Investment Real Estate Brokers and Investment Advisors I was speaking to. I told them that it is always without an exception cheaper to rent than to buy. They challenged me to prove it on a big marker board. That is the easiest thing to do. They gave me the figures on an upscale home one of them was planning on selling, and buying a bigger fancier home which he had done every 5 years. And the going rental costs for a upscale home. When I got done the person whose house we used said he was convinced. He was an investment advisor handling accounts for well to do people.

I saw him a few weeks later. He had sold his home. He had leased a far nicer home than the one he had owned and much nicer than the home he was considering buying. He leased it on a 5 year lease, and put the difference in costs between the rent and what he was figuring would be his payments on the other home, plus what would have been the down payment, and the rest of the proceeds from the sale of the home into a savings plan.

He had twice as nice a home as he had presently owned which was super nice executive home. The home his wife was hoping to move up to in 5 to 10 years. His savings were building up faster than any potential increase in value. The owner was paying for any needed upkeep on the home, so he saved a bundle there over time. He started to teach what I had taught him to his clients, and they started selling their homes, and leased something nicer for less money, and invested the profits from the sale of their home in other investments.
This may be true for people who can't do any of their own upkeep - I don't think it has been true for me at all. But I bought a cheaper old farmhouse to live in, not as a house I would sell and then later "move up" so to speak. Bought the place in 91 for about $46K, the house, an old barn/garage, and 13 acres of pasture. Over time I have added a better garage (did have a pole barn builder do that for me), upgraded the old garage, wired both garages, and added some outbuildings and sheds. I have redesigned the irrigation in the pasture such that it uses gravity feed for most of it's pressure (hand lines). Ordinary maintenance such as painting I have done myself.

My guess is the property is worth something more than $250K now. I'm an engineer, not an accountant, so I can't say precisely what my cost basis is, didn't keep detailed expense records. But all in I doubt I have $100K in it.

When I was making payments on the 15 year note, it was about $400/month. Good luck finding a cheap apartment around here for that.

That and my lifestyle does not fit well into a rental property. With old cars to work on, I need the room, and I prefer to be able to modify my abode as I see fit.

Would be interested to read how you think I might have ended up with a higher net worth if I had rented a house or apartment. Obviously if I could have known how things were going to play out, if I had put the house money in Google stock, for example, yeah, I would have come out way ahead, but not having a good enough crystal ball means I couldn't do that.

All that said, small cheap houses tend to be easy to find a renter for who will pay more than the monthly note to buy them. "Upscale" houses, particularly in toney neighborhoods, it seems to me there are not as many people who want to rent them, can afford to rent them. So it may be different at the opposite end of the cost/value spectrum.
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Old 04-17-2015, 04:03 PM
 
6,305 posts, read 4,752,208 times
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When it comes to renting versus buying we get lots and lots of different opinions. I suspect the decision depends on the part of the country. Conditions vary widely even within a few miles. The comment about renting and trying to find a safe place can be very true. Lots of neighborhoods seem to go downhill when houses are available for rent.
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