A question about buying on the Eastside of Seattle.... (Cottage Lake: real estate market, for rent)

[systerhuff]

Hi,
My husband accepted with Microsoft. We're moving up in May. We thought we would buy originally, but now think we are going to rent. My husband really does not want to stay longer than 3 years. If we bought in a community like Duvall, or Woodinville say, would it make sense of us? We're looking at 3/4 bedroom homes in the price range of 400k to 450k. We have about 60k for a down payment, so we would have to pay PMI. Is it worth it? Advice from anyone? We just fear that if we left during that 2nd or 3rd year, we'd end up losing money, what with the closing costs and everything else included. There are such nice homes for rent that are only around 1600 where we could invest that extra 900 a month, or save it along with the rest of our 60k for a nice down payment down the road. ADVICE?? Are we silly not to buy?

[scirocco22]

I'd say definitely rent at first. It will give you a chance to see what the area is like and where you might want to buy if you decide you want to make the area your permanent home. But if you're only planning on staying 3 years, then I think it's a no-brainer to rent ...jmo.

[drewba]

I completely agree with renting if you're only planning on staying 3 years. If you buy, you're paying closing costs up front and then around 8% of the home's value for commissions and excise tax when you sell.

Since we're in a soft real estate market right now, you certainly can't count on strong appreciation over the next 3 years and selling at the end could be difficult.

[Pittgal]

We are only here for 4 years so we rent a house too! It is what is best for us because of all the reasons drewba listed. We pocket so much money this way and will end up way ahead in the end! Good luck to you!

[allforcats]

As a homeowner myself, I completely agree with the previous posters that for your situation, renting would definitely be the best choice, for all the reasons they've stated. If I were in your shoes, I'd be REALLY concerned about the entire real estate market and all the mortgage/banking difficulties right now, which will continue to be problems for at least a year and probably two years down the line. Rent! You'll be worry-free if you do!

[Condorll]

2-3 Years will fly by pretty quick, so I would say rent also.

However, let me put a spin on it.

You might be able to find a "rent with option to buy" deal that would save you the trouble of moving again if you decide to stay longer than 3 years and really like the home and area.

[woody1234]

I think that if you buy smart, you'll be better off purchasing a home. What I mean by that is purchasing a nice home in a desirable neighborhood close-in to Microsoft.

Don't fall into the trap of purchasing in a town where the commute is more than 25-30 minutes to Microsoft. Given this goal and your price range, I would stay away from Duvall. You can get more house there, but what you really want is a nice house in a desirable neighborhood with a decent chance of appreciation. Duvall is just too far away and the commute is HORRIBLE.

I would look at the Cottage Lake area of Woodinville. The commute is under 25 minutes and very straight-forward - just follow Avondale Road and 520 to Microsoft. The homes are nice and the prices are the most affordable in Woodinville. I personally feel that you'd be making a good investment by purchasing there - even if only for 3 years. And who knows? Maybe you'll stay longer! If you can get a 5/1 ARM, you'd probably be able to save a little on your monthly payment since rates are pretty decent now.

[woodinvilleguy]

Originally Posted by woody1234

I think that if you buy smart, you'll be better off purchasing a home. What I mean by that is purchasing a nice home in a desirable neighborhood close-in to Microsoft.

Don't fall into the trap of purchasing in a town where the commute is more than 25-30 minutes to Microsoft. Given this goal and your price range, I would stay away from Duvall. You can get more house there, but what you really want is a nice house in a desirable neighborhood with a decent chance of appreciation. Duvall is just too far away and the commute is HORRIBLE.

I would look at the Cottage Lake area of Woodinville. The commute is under 25 minutes and very straight-forward - just follow Avondale Road and 520 to Microsoft. The homes are nice and the prices are the most affordable in Woodinville. I personally feel that you'd be making a good investment by purchasing there - even if only for 3 years. And who knows? Maybe you'll stay longer! If you can get a 5/1 ARM, you'd probably be able to save a little on your monthly payment since rates are pretty decent now.

In fact my house is right at this area. I used to work for MSFT and the commute wasn't bad at all. PM me if you want more info about the area or my house.

[fastsix]

Rent - you most likely won't get your money out after just 3 years. At the very least wait until mid Summer to see how the housing market is going to shake out. A lot of people don't think it's going to be so good this year. As for Duvall (or any other neighborhood) try driving the commute in the afternoon and see if it's worth it. My guess is not, but if you want a bigger house and more land maybe you won't mind.

[Ira500]

I'm a real estate agent, and I say rent!!
If you buy now and may want to sell in a couple of years, you're taking on an awful lot of risk. Prices have started dropping in the Seattle area, Eastside included, and it may be a while til it hits bottom.