Housing Market - Buy vs. Rent??

[Buoy]

Situation is, looking at a possible cross country move.
Only looking to stay for 3-4 yrs.
Have two semi large dogs (one's 40#, the other is 67# Border Collie/Aussie Cattle Dog respectively).
Might be hard to find a place to rent, and need a house, not a Condo/Apt.
Need a yard, and a place to keep the boat.
Real Estate is cheap right now.
Am I going to be able to get out of it in 3-4 yrs in the +$+$+??
OR, just rent and bank some money to make the move in a few years?
We're pretty easy going, and don't require a large house. But if I buy something, I want to be able to get rid of it in a few years.
So, resale will be important.

 

[Tony]

In other words, you want Fla, she wants west coast, and you just lost!

 

[ImaPoser]

Where?

 

[spilman]

pretty much anywhere you buy right now you will be in control....buyers market nationwide. If history has shown us anything, re is truly cyclical and we will "likely" see the bottom within the next 12-18 months, at worst. That being said, I would certainly buy between 2200-3500sq.ft, in most areas that price point will be relatively easy to unload for a fair to moderate profit in 4-5 yrs; worst case. just my .02
spil

 

[spilman]

pretty much anywhere you buy right now you will be in control....buyers market nationwide. If history has shown us anything, re is truly cyclical and we will "likely" see the bottom within the next 12-18 months, at worst. That being said, I would certainly buy between 2200-3500sq.ft, in most areas that price point will be relatively easy to unload for a fair to moderate profit in 4-5 yrs; worst case. just my .02
spil

:26:Oh, & btw, I did not stay @ a Holiday Inn Express last night!:03:

 

[phragle]

really depends on exactly where your going, theres some real deals but your going to have to closely examine the neighborhood. that will tell you how quickly the rebound will be. some areas of so cal are still deireable, some neighborhoods aer just overbuilt and it will take a long time to come back. I watched all those houses going up around san diego as well as the prices and saw th writing on the wall 10 years ago.

 

[Cash Bar]

It would help to have an AREA that you're considering. I can give advice but it needs to be on something I know about.

Like Fountains....

 

[Offshoredrillin]

it would help to have an area that you're considering. I can give advice but it needs to be on something i know about.

Like upside down fountains....

:26:

 

[cigdaze]

He said cross-country, not south...Phoenix?

 

[DollaBill]

Rent, keep the cash in the bank. Being liquid in this market will be KING. period.

 

[tommymonza]

Rent. We are Far Far from the bottom.Things are going to get far uglier.

 

[MarylandMark]

Another vote for rent.

Realtors in general want 6% on a trasaction. Yes- the seller pays when you buy which really means they would have taken 6% less without the Realtor involved and walked with the same $. For sake of conversation the comission is built in to the sales price is all I'm saying.

You can save some $$ with the tax write-offs but interest is still money spent, not making money on the money you have to put down, etc.

12% minimum in 3-4 years just to break even? Along with hoping the washer doesn't take a crap or any of those type things. Tough bet and not worth the risk IMHO.

I'm renting a condo right now for about $700 less than it cost the owner to own and they are estatic. Easier to come up with $700 than it is the whole nut- many investors I know are doing the same thing

 

[Mark]

:iagree:

Mark is right on. You would be very lucky to sell at what you paid and the realtor, etc. fees would put you in red ink. Do what Mark is doing. I have seen many, many cases in Florida where you can rent for 1/4 of the cost to own. No joke. With your stated time frame - Bank your cash.

Example - a relitive of mine is renting a BEACHFRONT home in Destin, FL. for $1,500 a month including utilities! I bet that rent only covers the owners taxes, insurance and utilities. Take advantage of the current situation to live a bit high on the hog - on someone elses dime!

 

[masher44]

Purchase if:

You have strong credit and can get good terms.
You are purchasing in the upper 50% of home prices wherever you are going.

Almost every city have somewhat recession proof neighborhoods. ie Highland Park Dallas, Waterfront areas in coastal areas. Or niche neighborhoods (historical or artsy).

You can get really solid deals in most markets right now and there ARE lenders out there right now making 95 to 100% loans to strong customers. Look at each neighborhood individually. If you see what the recent transactions or appraisals were and you can buy 15 to 25% lower than what you find, BUY.

Research Research Research

one example I found, there are some in every major metro area

http://www.memphisdailynews.com/editorial/Article.aspx?id=34466

 

[Perlmudder]

:iagree:

Mark is right on. You would be very lucky to sell at what you paid and the realtor, etc. fees would put you in red ink. Do what Mark is doing. I have seen many, many cases in Florida where you can rent for 1/4 of the cost to own. No joke. With your stated time frame - Bank your cash.

Example - a relitive of mine is renting a BEACHFRONT home in Destin, FL. for $1,500 a month including utilities! I bet that rent only covers the owners taxes, insurance and utilities. Take advantage of the current situation to live a bit high on the hog - on someone elses dime! [/QUOTE

ouch, my roomates and me pay 2000 a month plus utilities for a small house in guelph ontario =(

 

[cigdaze]

:iagree:

Mark is right on. You would be very lucky to sell at what you paid and the realtor, etc. fees would put you in red ink. Do what Mark is doing. I have seen many, many cases in Florida where you can rent for 1/4 of the cost to own. No joke. With your stated time frame - Bank your cash.

Example - a relitive of mine is renting a BEACHFRONT home in Destin, FL. for $1,500 a month including utilities! I bet that rent only covers the owners taxes, insurance and utilities. Take advantage of the current situation to live a bit high on the hog - on someone elses dime! [/QUOTE

ouch, my roomates and me pay 2000 a month plus utilities for a small house in guelph ontario =(

Yep. $1500 bucks a month rent will get you a 1500sqft 3/2/2 on the water around here these days.

 

[cigdaze]

Situation is, looking at a possible cross country move.
Only looking to stay for 3-4 yrs.
Have two semi large dogs (one's 40#, the other is 67# Border Collie/Aussie Cattle Dog respectively).
Might be hard to find a place to rent, and need a house, not a Condo/Apt.
Need a yard, and a place to keep the boat.
Real Estate is cheap right now.
Am I going to be able to get out of it in 3-4 yrs in the +$+$+??
OR, just rent and bank some money to make the move in a few years?
We're pretty easy going, and don't require a large house. But if I buy something, I want to be able to get rid of it in a few years.
So, resale will be important.

If it's a short-to-medium term move than I would certainly rent - unless you're dealin' in cash or are in the top-echelon of buyers, it wouldn't make sense to buy for short term right now. The hassle, two broker transactions and the uncertainty of resale would lead me towards renting and saving the difference.

 

[Mark]

:iagree:

Mark is right on. You would be very lucky to sell at what you paid and the realtor, etc. fees would put you in red ink. Do what Mark is doing. I have seen many, many cases in Florida where you can rent for 1/4 of the cost to own. No joke. With your stated time frame - Bank your cash.

Example - a relitive of mine is renting a BEACHFRONT home in Destin, FL. for $1,500 a month including utilities! I bet that rent only covers the owners taxes, insurance and utilities. Take advantage of the current situation to live a bit high on the hog - on someone elses dime! [/QUOTE

ouch, my roomates and me pay 2000 a month plus utilities for a small house in guelph ontario =(

Dude, that's nuts! :ack2: Transfer colleges and move down to Florida.

 

[clayinaustin]

As others have said, in the short term it is much cheaper to rent than to buy. Once you figure closing costs on both the buying and the selling, you would need to keep a house for several years just to break even.

Unless you plan to keep the house for a long time and make it into a rental unit, just rent a nice place.

 

[Buoy]

OK, here's the deal.
I was trying to keep it semi quiet because I have friends on the board that work for the Co. also, and I don't want to start any rumors. But, I'm finding out daily (after being in FL a week ago) that rumors are already flying. Let's try to keep this under wraps as far as that is concerned.
Wife has a potential lateral move to FL, with 2-3 yrs and then (very) likely promotion (after a retirement/contract settlement by the current position holder).
Also, has a potential promotion in Tempe AZ. Gives the possibility to move to AZ now, take the promotion, and then in a few years to possibly make the transfer to FL.
Either way, I think it's going to put me high and dry until I find a new gig.

We ultimately want to be in FL.

So my question is, is now the time to try to make a buck on some property in that time frame. Also, I have a lot of stuff I don't want to get rid of (tools, garage stuff...) that I don't want to part with. And I have a boat that I need to put back together.
Also, the two dogs are a very serious consideration. Because they are like our kids, and we have to make sure it's going to be feasible for them also.
Not sure how difficult it will be to find a rental house that will take them.

Heading to AZ in two weeks to check it out.