Buy or rent?

[kyparrish]

We rent.

a) credit scores wouldn't give us optimal rates
b) I'd rather not blow ALL of our savings on a downpayment
c) Still young (23 and 22)
d) Will have opportunity in the near future to take a promotion that will requre me to move.

 

[Nutdotnet]

Well, I've been told that prices have been going up in Anchorage steadily 6-8% for the past few years.

I was thinking of doing a first-time buyers program. Fortunatley, I already have all my furniture (except for couches) but everything else I am golden. UNFORTUNATELY, I'd probably only have $1500-2000 to put down. So I'm far from the 20%. But, I don't plan on moving out of state anytime soon. I have a 6-year old and I'd like to have a place where she can come stay for weekends, summers, etc...my current living situation doesn't allow this.

 

[intogamer]

buy a condom!

 

[z0mb13]

I seriously think you should wait for a year or so to buy a house.. the house market is simply too hot..

also if you have access to wall street journal, they have an article on how renting is such a bargain nowadays.

 

[plk21]

buy.
Buy.
BUY.

Or rent from me. I'd be glad to convert your money into my wealth. 😉

 

[Nutdotnet]

Originally posted by: z0mb13
I seriously think you should wait for a year or so to buy a house.. the house market is simply too hot..

also if you have access to wall street journal, they have an article on how renting is such a bargain nowadays.

Can you give me the jist of why? I've rented for the past 6 years...it just seems like all that money could be going to something I own.

 

[OS]

It depends on the region, but in high priced areas it often no longer makes sense to buy instead of rent.

article

 

[royaldank]

Originally posted by: Nutdotnet
Well, I've been told that prices have been going up in Anchorage steadily 6-8% for the past few years.

I was thinking of doing a first-time buyers program. Fortunatley, I already have all my furniture (except for couches) but everything else I am golden. UNFORTUNATELY, I'd probably only have $1500-2000 to put down. So I'm far from the 20%. But, I don't plan on moving out of state anytime soon. I have a 6-year old and I'd like to have a place where she can come stay for weekends, summers, etc...my current living situation doesn't allow this.

Not sure what sort of programs AK has, but I would bet you don't have to put anything near 20% down. You're not going to get the best rate, but FTHB programs generally have a higher interest the less money you have.

It really comes down to what you afford each month and how much you can borrow. If you can find a relatively cheap place and comfortably afford the payments, it's a great idea. If you are blowing all your savings and will be looking at living paycheck to paycheck in order to pay the mortgage, it's probably not your best move.

I'd suggest going to the bank, mortgage broker, or credit union and see what your options are. They can get you a good faith estimate showing down payment, monthly payments, etc. To get pre-qualified, they can run your credit, enter some personal info, and most likely know within minutes how much you can easily qualify for.

I highly suggest you look at the monthly payments and decide if it's affordable. Factor in additional bills (heat/air, etc) and make sure it's not going to kill you.