ATTN: Homeowners *poll*

Toggle sidebar Toggle sidebar
B

bmacd

Lifer
Jan 15, 2001
10,869
1
0
Hi. I'm getting deployed in January to Iraq for at least a year, but more likely to 18 months. I have a full time military job, and I just got promoted and I'm being transferred back to Detroit. I'm on paid leave until August, at which I start the new job.

From August to January, I have the option of

A) Renting a house. I'll move all of my stuff into somebody else's home for a few months, pay rent to them, and then when it comes time to deploy, rent a storage garage and move all of my stuff into it again. I won't have any bills to worry about, pipes freezing, breaking and enterings, etc. However, when I come back, I'll have a substantial amount of money to put towards a house as a down payment and decrease what could be a big mortgage.

or

B) Get a mortgage. Buy a house. Move all of my stuff one time. Establish equity into a home. Have something that is mine when I come back. Hire somebody to do the landscaping while I'm gone. Worry about a mortgage payment (automatic withdrawls ftw). Worry about pipes freezing. Worry about climate control in harsh Michigan winter months. Worry about breaking and enterings. Worry about floods, sump pumps and loss of electricity. I have barely enough money to meet minimum closing costs saved up (~$2k).

My Dad strongly advised me against purchasing a house before I deploy. What do you think?
 
dullard

dullard

Elite Member
May 21, 2001
26,107
4,755
126
I see no logic at all in buying now. Buying now will cost you at least $20,000 more in even an area where housing isn't expensive. That is a lot of cash to avoid moving one time.
 
L

Lola

It is a buyers market in Detroit right now, but i would not buy a house til you get back though.
 
V

ValValline

Senior member
Feb 18, 2005
339
0
76
First off thank you for your service.

To answer your question....If I was in your place, I would not purchase a house until I was sure I would be able to live in it for at least 5 years.
 
dullard

dullard

Elite Member
May 21, 2001
26,107
4,755
126
Possible example numbers if you lived in my area (Lincoln, Nebraska):
If you rent now:
[*]Rent: $600/month for 5 months = $3000. This gives you a good apartment.
[*]Storage: $100/month for 18 months = $1,800.
[*]Hiring a moving company twice: $1,000.
[*]Total: $6000.

If you buy now:
[*]Mortgage: $1100/month for 23 months = $25,300. This gets you a ~$125,000 home.
[*]Extra utilities + people to do your house chores: $100/month for 23 months = $2,300
[*]Tax savings: Lets just guess it will be $1000.
[*]Total: $26,600.
[*]Note: this will be MUCH more if something goes wrong when you aren't there. Imagine a burst pipe that goes undiscovered for a month. Mold everywhere, everything ruined.

Difference: $20,000. Total equity built: $2800. Net loss by buying now: nearly $17,000.

That is, unless you get some fantastic deal for being in the military and owning a home. I don't know what perks you might get.
 
B

bmacd

Lifer
Jan 15, 2001
10,869
1
0
Sounds like the obvious move then. I just bought a 6x10 trailer, and between that my my Explorer, everything I own in my current house can be moved in one drive.
 
You must log in or register to reply here.

TRENDING THREADS

COMPANY
RESOURCES
FOLLOW
Top Bottom