Originally Posted by RDY4WAR
My wife and I are both flipping back and forth on this decision. We didn't buy for a long time as I was in the military getting bounced around. I've been out of the military for a while now, and our 2nd daughter was born earlier this year. We've been renting a small 2-bedroom house. It's close to my wife's work and it's all the house we've really needed until now. With the little one getting big enough to need her own room/space, we're discussing whether we should become first time homeowners or just try to find a bigger 3-bedroom house to rent for a few more years and then buy.
I've had people tell me that owning your own home is very rewarding. However, nobody has been able to tell me why it's rewarding other than "well, because it's yours". My answer to that is "no, just instead of paying a landlord, I'm paying a bank, but now also liable for maintenance." I've had others say "you can build equity/value with the home" but if we buy a home, we're doing so with the intention of living in that home the rest of our lives so why should I care about resale value?
Financially, buying isn't a concern. We have good credit. I'm a 100% disabled veteran so I qualify for the veterans home loan with 0% down and fixed 30 year rate. They also cover PMI.
In my area, a 10-15 year old, 1500-1800 sqft, 3 bed, 2 bath house, not in an HOA, will sell for $140-170k.
What I don't know is about the market. Is it a good time to buy right now or is it not?
Better yet.... just tell me what's the pros and cons of buying vs renting. What is the reward for buying besides equity? What the cons? Convince me that it's a good idea to buy a home.
Pros of Renting a house are cons of owning so here goes:
- Flexibility; It's easier to move especially in a down market. Promotions, schools, elderly parents, etc,
- Someone else is responsible for repairs and maintenance.
Pros of Homeownership.
-Equity via "forced savings". Living in Georgia your equity gains aren't going to be as great because there aren't that many other states which have such a low cost of living. For example you won't be able to sell a 3 brdm 1500 sqft cottage for $1MM and retire into a 4 bedroom 5k sqft house for $350k.
- Nest building. Owning for the most part gives you free rein with regards to making your houses "yours".
- Monthly expenses are basically fixed and you'll generally be able to afford more/higher qualify space per $ spent.
Rates are still near all time lows, but sellers are beginning to feel pressure in some markets (California). It's usually better to buy in a high rate environment because you more or less protected from being unable to sell in a downturn. The real estate market is local/regional. As around for a Realtor and see what they say.