Real Estate Market- renting v. buying (Marshfield, Hingham: rental, buying a home, calculator)

[rmh1]

Hi everyone
My family is moving to the South Shore area this summer. We plan on only being there for 2-3 yrs. We are debating whether we should rent a house, as opposed to buying. It seems a lot of houses in the towns we are considering (Duxbury, Cohasset, Marshfield, Hingham) have been on the market a bit. The market has slowed down where we are as well and given that we are wondering whether we should rent and not have to deal with the hassle of selling when we are ready to move back. What are your thoughts?
Thank you!

[LeavingMA]

I'd say buy. Chances are the market won't be as bad to sell in 2 or 3 years as it is now. You are still taking a chance, but if your going to shell out $, at least have something to show for it. Plus after two years you avoid capital gains tax on your home when you sell.

[jayrandom]

If you are definitely only going to be here for 2-3 years, it would probably be financially more prudent to rent instead of buy. There are many calculators that will tell you exactly what the difference would be, based on assumptions of home appreciation, market performance, resale costs, taxes, etc. you can estimate the costs to buy vs. rent. Here is one: http://www.nytimes.com/2007/04/10/bu...T_GRAPHIC.html

There are also non-economic factors, like the freedom and responsibilities associated with home ownership, so keep those in mind, too.

[RichCapeCod]

Originally Posted by jayrandom

If you are definitely only going to be here for 2-3 years, it would probably be financially more prudent to rent instead of buy. ........

I concur. If you really are out of here in a couple of three years then rent. More then five, buying begins to make sense.

Your call.

Rich

[Boomerang]

If you buy, be very careful to choose something with the best prospect of resale. As you've noticed, homes are tending to "sit" on the market now, with no real evidence of exactly when that's going to turn around. Keep the odds on your side by buying a home with the kind of location and features that'll make it more attractive than the competition in your price range.

[ChunkyMonkey]

I agree with the other posters. 2-3 years is not a long enough horizon to buy as you will have to pay closing costs on the purchase. I would recommend you rent.

[Valerie C]

When you factor in the costs of buying (closing costs, etc) and the uncertainty of being able to sell your home on your time frame, and to hopefully at least breaking even, well IMO renting would most likely be the best option for you. "Been there, done that" and while buying was the best option for us when we relocated my family half-way across the country, these are uncertain times and you may be able to find a nice long-term rental from somebody who doesn't wish to take a loss to sell at this time.

Originally Posted by rmh1

Hi everyone
My family is moving to the South Shore area this summer. We plan on only being there for 2-3 yrs. We are debating whether we should rent a house, as opposed to buying.