Buy sooner or later?

Alice_sjMay 8, 2003

My husband and I have been looking into buying a home. Our problems are that the house that we could currently afford are no larger than the apartment we are in right now and we need more space, and we'd be farther from work and school.

We were thinking that if we wait a year or two, we would have a larger down payment and possibly be able to afford the payments on a little larger home.

We live in a high rent/expensive home area. But I am fearful of us getting stuck in a house that is way too small for us for much longer than we want or that we'd end up not being able to sell the little house later on. I'm also thinking that a too small house with the typical problems will be a major frustration and end up costing us a lot more.

My questions are....

Would it be better.... to get into a home as soon as possible, even if it's no larger than this apartment? Wait and see if in a year or two we have better options?

Or wait until I am out of college and have a job? (This will be more than a few years, but I would be adding to the income, increasing the home we could afford, right?)

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mariend

If you can afford it try putting your paycheck into a savings account and living on one income. If you have no children take that into consideration as to school districts, work, baby sitting etc. As you are still going to school, I would wait awhile. My daughter put her paycheck in the bank and they had two girls, but they really struggled to live on the one income so they were able to save a good down payment. They found homes in a better area closer to better schools.
Marie

    Bookmark   May 9, 2003 at 8:35PM
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gandbb

a good answer would require a crystal ball. I guess my first question would be "are you happy living in an apartment?" and "what would be different?" You only mention the negatives so my thought is that you don't want to do this and so you shouldn't. On the other hand I can't think of anyone who was sorry they made the move to buy a house. With interest rates so favorable I would think you could do quite well for just the price of renting. I have known quite a number of people who bought mobile homes or condos who were sorry because they were so hard to get out from under, but not one who was sorry they bought a stick built single home.

    Bookmark   May 14, 2003 at 12:25AM
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Billl

From a strictly financial standpoint, it is almost always better to own something than to rent. However, from a headache standpoint, it is almost always better to stay in an apartment than to move into a home you have to take care of. If you haven't owned a home before, you have no idea how many little things will need your attention. Most of them aren't big money drains, but they are a hastle and require time. Personally I like gardening, lawn care, plumbing, woodworking, painting etc, but if you aren't excited about it, it can be a big commitment.

    Bookmark   May 15, 2003 at 11:39AM
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kathy_

I would wait and save like crazy. You don't need to worry about interest rates on the money you don't borrow. If you buy a house you don't like now what will happen if the prices of houses go down in your area? Another option would be to buy the smaller house in an area you would like to live a long time and make sure there is room to add on and plan on staying there. My brother-in-law bought a little house and now wants to sell and has very little equity to show for his money because they have only lived there 5 years. At the time they thought the house would be "good enough" Kathy_PA

    Bookmark   May 15, 2003 at 9:11PM
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