Renting over Buying??? (fit in, real estate, rental)

[kab0906]

I keep hearing everyone say rent first, but who can afford that!

I looked at Zillow and the minimum we'll need - 1800 sq ft, 2 bedrooms, 2 bathrooms that allows a dog are few and far between - and the rent starts at $1,800.00 per month!!!

I figure with the downpayment we'll have from selling our home here into a larger home (looking at 2200 sq ft, 3 br, 2 bath) our mortgage payment will be around $800 per month.


It seems like a crazy idea to rent.


Tell me how I'm wrong???

[tinytrump]

ohh you add in insurance and taxes yet? sinkhole ins flood too and the things is where do you want to buy?? only being here can you know.

[bentlebee]

The OP is right. If you can afford to buy and know what area you want to live then buying is smarter than renting.

You also don't have to deal with non-refundable pet fees, LL that you may not like and visa versa.

Of course buying has it pros and cons but if you buy and conduct due diligence than you should be able to benefit in the long run. After all any money spend on renting will be gone...

Many people will not agree with me for the simple reason that their property values are down due to numerous reasons and we all know why and one of the reasons was that people were not honest on their mortgage application and lied about their income and bought above their means.

If everyone will calculate what they really can afford, incl. reserves for repairs, etc. and take into account that you need money to some other things and enjoy life, and save for later in life than you should be able to buy and enjoy and appreciate having a home that you own...proud ownership is nicer than renting and I have been on both sides of renting and also own homes.

Some people are happy with renting and feel that is better than dealing with repairs, and paying for repairs, but they often forget that usually repairs are paid from their money.

[rezfreak]

We rent a 2k sq foot house (3 bed - 2 of the bedrooms are very oversized - 2 bath with a dog allowed) and its 1300.

[druthb00]

You're not wrong...IF you know what area(s) you want/need to be in - From personal experience, not "research" on the forum. We all have our own opinions around here, and the only way you know what's right for your family is to see it for yourself. Renting based on internet research and maybe a visit or two to the area is one thing, buying is a whole different story.

Case in point: We rented based on internet research and a visit the year prior that was within 5 miles of the rental. We failed miserably. But hey, at least it wasn't permanent.

[SeaSpur]

So as a few others have said:

- Insurance. You will likely be surprised. Depending on where you choose to live, it could be $2-3000 per year...that's an extra $200-$250 a month.

- Taxes. They are high and likely higher than where you currently are in Kentucky.

The main thing is...you aren't from this area and aren't positive as to what you are getting into. This area is spread out and there are many different attributes of each area. If you could find even a short term 6 month rental (1 year at worse), wouldn't the extra expense of getting a feel for the area without a hard commitment be worth it?

Even a couple trips down here on the weekend don't paint a good picture of what it's like to live here. You need time...to see how traffic is (during morning, during afternoon, etc), check into schools, what kind of shopping is available, what is the culture of the community like in each area, and where do you feel you fit in? Takes time.

I see a lot of people who have made the mistake of rushing down here and buying...then unhappy with the area they live in and unfortunately have to go through the selling process OR just deal with it.

[chi_tino]

If you need to sell on short notice, expect to take a 10-15% hit between closing costs, commissions and making the price palatable to buyers. That eats up those "savings" in a hurry.

My mortgage is about 40% of the cost of owning my home. Your mileage may vary, but by the time I add up property taxes, insurance, maintenance and periodic improvements, landscaping, trips to Home Depot, etc, those costs exceed what I pay the bank.

[bavariantransplant]

The decision to rent vs buy is always a very personal one specific to so many variables based on you and your situation.

What makes sense for one, may not for another.

For me, I sat down and made over a couple of months times the most comprehensive list of hte pro's vs con's and that brought me to my own conclusion but my list will be so different then yours.

Anyway who blanketly says you should do either first or in order is giving bad advice because they dont have YOUR facts.

[jambo101]

Originally Posted by kab0906

I keep hearing everyone say rent first, but who can afford that!

I looked at Zillow and the minimum we'll need - 1800 sq ft, 2 bedrooms, 2 bathrooms that allows a dog are few and far between - and the rent starts at $1,800.00 per month!!!

I figure with the downpayment we'll have from selling our home here into a larger home (looking at 2200 sq ft, 3 br, 2 bath) our mortgage payment will be around $800 per month.


It seems like a crazy idea to rent.


Tell me how I'm wrong???

The idea behind renting first is to get to know the area you intend buying in, it gives you some time to shop around for the best place for you and gives you a chance to spot problems in a given area.
I guess it comes down to personal choice but moving into an area you know nothing about and rushing into buying a home seems a bit iffy in my opinion as once you buy the house you could be stuck with it for a long time,
Theres no right or wrong involved here just do whatever is right for you.
PS I'm sure you can do better than $1800 a month for a temporary rental unit..

[stpeteguy]

Originally Posted by kab0906

I keep hearing everyone say rent first, but who can afford that!

I looked at Zillow and the minimum we'll need - 1800 sq ft, 2 bedrooms, 2 bathrooms that allows a dog are few and far between - and the rent starts at $1,800.00 per month!!!

I figure with the downpayment we'll have from selling our home here into a larger home (looking at 2200 sq ft, 3 br, 2 bath) our mortgage payment will be around $800 per month.


It seems like a crazy idea to rent.


Tell me how I'm wrong???

This forum is heavily infested with real estate agents who will tell you that buying is smarter than renting. They were saying that at the height of the real estate bubble a few years ago. I think most are just trying to drum up business for themselves or someone in their line of work. Don't listen to them.

First off, you can rent a decent 2/2 for a lot less than $1800/month. In case you haven't noticed, square footage in Florida, is a lot less than most parts of the country because so many people live here and houses are generally a lot smaller. You will no doubt need to adjust your min. square footage requirement to something more easily found, like 1000-1200 sq. ft for a 2/2. FYI, most people have less than 1800 sq. ft of living space.

If you don't know the area that well, i'd say definately rent first and figure out where you like best. Then your not trapped in a long term contract in a place you don't want to be. There's a lot to be said for having the ability to move when you want too. Buying has it's own headaches. Insurance constantly going up, taxes constantly going up, home repairs, lawn care, etc.

Buying makes sense if you know exactly what you want and where you want to be. Renting offers a degree of freedom that is very valuable in it's own right.