Rent vs buy?

Wow, chuyler1, you just described my life 2 months ago, when I still had a girlfriend... ...it's all good though :)

I'm with my parents for now and also have a job with computers, I was waiting for my girlfriend (who was living in apt close to campus, far from me) to finish her Graduate year in education before moving out with her and getting a place.

Now I have more choices, but no roommate.

The perfect scenario for me would be to buy a house, live in part of it and rent out the rest (24 and single, don't need the space yet). This guy I know does that and the rent basically pays off the mortgage, sweet!
 
ok then....

ONTO THE NEXT TOPIC in my thread.....

what sort of programs are out there to help the 1st time buyer? I know they have programs that give stuff to the new guy, and I don't wanna miss out on my fair share.. (prolly not gonna qualify for any of the income restricted stuff)

What else should I know about buying a 1st home? With all of the incentives the builder are doing these days, it will probably be a new home.
 
There are classes (run by the banks I think) on how to buy a home. You get a certificate at the end that will give you a discount...My g/f's roomate is taking one. I don't know the details about it though. The classes are designed for first-time-buyers of homes and condos
 
I've been doing this same thing lately. I don't know what the market is where you live, but in general buy a house is usually a better investment than renting. One you get a nice deuctable on federal income tax for paying the mortage intrest, two you get equity in the house which can be used to borrow against. Besides the fact that if you market is like around here that $760 per month you pay is gonna be more than the $120K house you're looking at, depending of course on the loan points and intrest rate. So all in all you'll probably end up saving money plus adding to the value of your savings through equity.
 
rx7gslse said:
ok then....

ONTO THE NEXT TOPIC in my thread.....

what sort of programs are out there to help the 1st time buyer? I know they have programs that give stuff to the new guy, and I don't wanna miss out on my fair share.. (prolly not gonna qualify for any of the income restricted stuff)

What else should I know about buying a 1st home? With all of the incentives the builder are doing these days, it will probably be a new home.
Click to expand...

Well, here in Mississippi, as I am sure it is in other states, they offer down payment assistance, or "Bond money" as the bank referred to it. It's money you don't have to pay back, as a first time home buyer, that will cover your down payment 100%.

I went with an FHA loan, with the bond money as opposed to the VA loan. I have a 1400 sq. ft. house with a two car garage.. I think I paid $89,000, @ 7%, 2 years ago, and I pay $682 per month, with insurance and property taxes included. I think the house is 6 years old... Keep in mind the cost of living here in Mississippi is pretty damn low though...

I would definitely recommend buying a home though. I had my house appraised last month and they told me that the Low retail for my house would be $107,000 since I added things like crown molding, security system, a privacy fence, new paint and some other stuff. It is a great investment... That and you get a great break on taxes like Funwagon mentioned. For the first few years you are paying almost all interest though (I think I wrote off $8,000 in interest on my taxes last year), unless you throw in a few principal payments after your normal note. I paid my notes for the first six months, then sent in about $3,000 on top of my monthly note that I'd already saved for the down payment... Your principal is reduced by that amount with no interest that way....

Anyways, I say go for it. Make sure you find a bank that is well known for good mortgage loans and service. Hell, with as low as rates are now, you could get one hell of a deal on a new home! Good luck!
 
NICE!

wow. less than $120K for a 3 bedroom single-family home.

that price won't even get you a shack in Irvine, CA (where I live).

I paid more than twice that for a two-bedroom townhouse!
 
rx7gslse said:
boink! back to the top....

Thanks for the suggestions guys... I dropped off my deposit check at lunch today....

if anyone cares;
the house
http://www.beazer.com/community/hou...profileid=29417&locationid=14&communityid=941

floorplan
http://www.beazer.com/photofiles/rad4AC161200211112020.gif

virtual tour of a model
http://media.homestore.com/HCZ3M373-1L.htm
Click to expand...

Congratulations....looks like an awesome home. The cost of living there is incredible. I paid 145K for a new 2 bedroom single family home with a garage here in Elkridge, MD.
 
Congrats.
I am looking to buy a house in June. I'll be lucky to get a pre-owned one the looks half as good for that price. Was buying a house as stressful and difficult as everyone makes it out to be. Did you use a realtor?
 
MP3TLH said:
Congrats.
I am looking to buy a house in June. I'll be lucky to get a pre-owned one the looks half as good for that price. Was buying a house as stressful and difficult as everyone makes it out to be. Did you use a realtor?
Click to expand...

hmmm I dunno yet... Basically all I've said is "I want that floorplan on this lot, here's $500 so you don't sell it to anyone else."

this is pretty much just the beginning. I am gonna sit down tomrrow and do a nunch of paperwork, then next week or two I'm going to to need to go pick out all my options; floors, lights, appliances, wall coverings, firplace design, yard options, etc etc etc..

Yeah, living in TX isn't expensive.. I'm on the far outskirts of DFW though. The same house about 20 minutes closer would be 150+ pretty easy. Still not too bad, but a big diff.

ya know, this is Texas... you'd *think* you'd get a decent sized yard too... not so much.


I'll keep you all updated if you care.
 
I'm 22 and I'll be buying a house shortly. can't pass up the intrest rates... I can believe the difference in house prices... A 3 bed 2 bath - $130,000 thats amazing thats going to cost me at least $200,000 here in MN
 
yeah, one of my friends in Rodchester, MN was talking to me about the whole process since he's done it... I know he paid a lot more than that for his duplex/condo thingy....

Texas does have advantages :D
 
Owning your house is a really great feeling. I have had my house for about 3 years now. You should really buy A.S.A.P. Try to find a type of loan that does not have PMI. You really want to try and avoid paying PMI it like a really big waste of money. You Like in Texas right. If oyu are moving a little outside of a major city check to see if there is a rural housing loan. You usually can get a little better rate and by paying a fee you can avoid PMI.
 
Also have fun picking out all of that stuff like appliance flooring wall colors ect. I did the same when I had my house built. It really cool. I have a 1100 sq feet house with 3 bedrooms and 2 baths and a 2 car gararge. And I must say the MP5 looks good in the gararge, Right nex to my new Saturn Vue.
 
#1: SHOP FOR A MORTGAGE!!!

Definitely shop banks, and find a good mortgage deal. Interest rates may not differ much, but go for incentives like "Zero originiation fee" and no closing costs. If one bank won't do it, the next one will.

I bought in Tennessee last August, and like you, gave the builder $1000 to say "Hey, I'm buying this stinkin' house, let me pick out the decorations!" With the deal I got on an FHA loan, and the "zero-zero" loan options, it practically cost me nothing to move into my house. For a first time buyer, there's a bunch of incentive plans out there.
 
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