If you were in my shoes, would you buy or rent? (rates, income)

[rbkoreaus]

Disclosure that this is a crystal ball question, so feel free to ignore this if you despise "timing the market" kind of questions.

Doing a quick cost benefit analysis, I would like to incorporate any factors I may not have considered. Look at this question from a long-term investment perspective.

The situation: I'm under contract for my home in NJ, and I am moving to Northern VA soon, still a good seller's market in the particular areas I am interested in. I have enough capital to get a decent condo (not doing SFH this time) in a good area, but the question is, should I?

Should I wait and rent for a bit in anticipation of the eventual decline in the seller's market? Or should I just buy while rates are still fairly low?

Note: Getting to know the area first isn't a concern for me here, as I've frequently visited for work, and have a decent network of friends in the area as well.

Thanks in advance!

[barb712]

If I were in your situation, I would go ahead and buy a nice condo I could see myself living in for a while. Market, schmarket. Rentals are always more expensive in the long run, and here you've got something to show for it. It's not much of a gamble if you know the area and have friends there. Win win IMO.

[MrRational]

Before reading a single word of the post... if YOU aren't sure then do not buy. Anywhere.
The deeper question though, either way, is how much of your net income you can/will
commit to your housing expenses. Go low either way.

Originally Posted by rbkoreaus

I am moving to Northern VA soon
Should I wait and rent for a bit in anticipation of...

of greater certainty with the job? of making some friends? of learning your way around? YES.

[HudsonCoNJ]

You haven't said what the difference in cost is for buying vs renting. That matters and it differs from region to region

[rbkoreaus]

Originally Posted by MrRational

Before reading a single word of the post... if YOU aren't sure then do not buy. Anywhere.
The deeper question though, either way, is how much of your net income you can/will
commit to your housing expenses. Go low either way.


of greater certainty with the job? of making some friends? of learning your way around? YES.

I'd spend about 35% net or less either way. Job is the same (literally the same boss/team, I'm just physically relocating there). I do have some close friends there already, a few I could stay with temporarily until I settle if I needed to. And I am very familiar with the area, having visited often for work.

[rbkoreaus]

Originally Posted by HudsonCoNJ

You haven't said what the difference in cost is for buying vs renting. That matters and it differs from region to region

I'd be looking to spend between $2 to $2.5K per month either way, whether it's a mortgage (including condo fee) or on rent.

[Schmooky]

Rent until you’re absolutely sure which way you want to proceed. It doesn’t matter what we’d do. If you don’t already have an answer for yourself or your market, that automatically gives you the answer right there. Rent and keep researching.

[GolfingCat]

It's almost always better to buy. Renting is throwing away money.

[steiconi]

How long will you be there?
Do you really want a condo, or would you prefer a sfh?
Do you think the market will go up or down?

If you're going to be there for years, really want a condo, and think the market is rising, then buy.

If you aren't certain about these, then rent.

[HokieFan]

Originally Posted by rbkoreaus

Disclosure that this is a crystal ball question, so feel free to ignore this if you despise "timing the market" kind of questions.

Doing a quick cost benefit analysis, I would like to incorporate any factors I may not have considered. Look at this question from a long-term investment perspective.

The situation: I'm under contract for my home in NJ, and I am moving to Northern VA soon, still a good seller's market in the particular areas I am interested in. I have enough capital to get a decent condo (not doing SFH this time) in a good area, but the question is, should I?

Should I wait and rent for a bit in anticipation of the eventual decline in the seller's market? Or should I just buy while rates are still fairly low?

Note: Getting to know the area first isn't a concern for me here, as I've frequently visited for work, and have a decent network of friends in the area as well.

Thanks in advance!

Since you mention you're under contract on a home in NJ - I'm not clear if you're considering continuing with that purchase or buying a condo in NoVA? Are you canceling the contract in NJ?

FWIW, if you're asking about NoVA, the NoVA real estate market is pretty steady and I don't expect a decline within the next several years (if at all). How long do you think you'll live in NoVA?

The NoVA subform is a great resource as well. There are a couple of realtors on that forum, familiar with the NoVA market, who might be able to offer some words of wisdom as well.