Looking to buy a house convenient to Duke and UNC

[jill7930]

Originally Posted by no kudzu

3 years is long enough to recoup IMO. I too would not want to fritter away that kind of money with rent.

I agree. I would pay a lot of attention to neighborhood and choose one specifically that does well with resale! It seems like there are certain ones that cater to the Duke or UNC crowd, and so long as the home is priced well, is in good shape/staged well, isn't at too high of a price point, and it goes up on the market at the right time, it should sell with some ease. This was the case with both the neighborhood we sold in this summer and with the neighborhood of the home we then purchased in.

[jtmcofc15]

Agree with Debbie, Treyburn, although a bit away from Chapel Hill is a great neighborhood and full of Duke and UNC employees. You can get a heck of a deal in there at this point as well both new and resale.

[Pixel_Dent]

Originally Posted by nmncbound

We figured if we rented a house we would likely pay about 2000 a month in rent.... Do you think we will likely lose more than that between closing costs , taxes, and maintenance?

We are hesitant to rent first as that would just be wasted money and decrease our home ownership time even more.

Well if you end up with a standard 30 year mortgage most of those payments in the first 3 years are going to interest anyway. Then there's the opportunity cost of the money you're using as a down payment which could otherwise be working for you, taxes, insurance, repairs, & cet..

There have been some articles by economists recently which claim that you come out ahead financially by renting. You might want to google those and take a look. You might also come out ahead by tucking away the money you save by renting for 3 years and end up with a 20 year mortgage when you do buy instead of a 30 year.

Now, personally, I've owned my entire adult life except for the first 10 months after I graduated college so I certainly understand the desire to own. I like being able to do what I want with my house even if it does cost more. Follow your bliss.

[Mirabella]

I would buy in this market. You can always sell in the CH-Durham area when you are in a good neighborhood.

[peperoberto]

Originally Posted by Pixel_Dent

Well if you end up with a standard 30 year mortgage most of those payments in the first 3 years are going to interest anyway. Then there's the opportunity cost of the money you're using as a down payment which could otherwise be working for you, taxes, insurance, repairs, & cet..

There have been some articles by economists recently which claim that you come out ahead financially by renting. You might want to google those and take a look. You might also come out ahead by tucking away the money you save by renting for 3 years and end up with a 20 year mortgage when you do buy instead of a 30 year.

Now, personally, I've owned my entire adult life except for the first 10 months after I graduated college so I certainly understand the desire to own. I like being able to do what I want with my house even if it does cost more. Follow your bliss.

You have to look at rent ratios to know whether it is a good idea to rent vs buy. The rent ratio is the sales price of the house to a year's rent. For example, if a house is on the market for $175k and the rent is $1200/month, then the rent ratio is 175000/(12*1200) = 12.2

If the ratio is under 14 or so, it's a good idea to buy. If it's more, then you want to rent. It really just depends on the exact market.

You're right, though, that the first years are nothing but interest. So, take that into consideration too.

[topchief1]

Originally Posted by peperoberto

You have to look at rent ratios to know whether it is a good idea to rent vs buy. The rent ratio is the sales price of the house to a year's rent. For example, if a house is on the market for $175k and the rent is $1200/month, then the rent ratio is 175000/(12*1200) = 12.2

If the ratio is under 14 or so, it's a good idea to buy. If it's more, then you want to rent. It really just depends on the exact market.

You're right, though, that the first years are nothing but interest. So, take that into consideration too.

When I had mentioned about renting, it was also along the lines of limiting the costs and requirements associated with maintanance costs, as the OP had made mention of that too.

[casabyrd]

The Colony at American Village is a good option as well.