when is renting smart?
so here's our situation:
we built a house in 2006 in a suburb across the river from the city in which our 3 children go to private school. afternoon carpool and extra curricular activities are getting to be a problem for me and the baby. we have to pick up whichever older child doesn't have an extra curricular for that day at 3pm. then we all have to drive around town in terrible traffic and kill time while we wait for whichever child to finish practice at 6. this is getting more complicated as the activities are getting more "serious" -- the older 2 just started 5th and 6th grade.
so, we decided that even though we love our house and neighborhood, it is time to move into town where school, friends, restaurants, shops etc are. the prices of houses are crazy in town and all need a LOT of fixing up. i'm VERY picky, so we started the hunt last September. we didn't have any luck, so we bought a lot in a new neighborhood.
before doing so, we asked the builder that we liked if he thought he could build for us and not go over 350,000 on a 2500sf house. Our lot was 117,000 and we don't want to go over 500,000 for the whole package (house and lot). He said yes.
We hire an architect for 10,000. Drew up the house over the past 6 months. The builder's bid came back at 415,000 to build it. got a few other bids. they were similar. We worked on cutting it down to 400,000. There's nothing more to cut. we have 4 kids and 2600sf is what it came out to.
So, we need some more time to save up before building the house. BUT we need to get across the river. We found a cute little house that will do for us for a year or two. Is it smart to buy this cute little house as an interim house or should we rent?
I'm thinking it's always smarter to buy if you are pretty sure you will break even when you sell, right?
we have a buyer for our current house in the suburbs.