Author Topic: Buy v/s Rent- what is the best for us?  (Read 1861 times)

Nikii

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Buy v/s Rent- what is the best for us?
« on: June 22, 2015, 09:50:29 AM »
We are moving to a VHCOL next month. All the decent 2 br apartments in the suburb of this city rent for at least 2600/ month. This is almost 50% of my husband's take home pay.
Add childcare of about 900/month and things will be really tight for us.
I am currently working and will not move to the new city until I find a job as well.

All the apartments that we are getting for less than 2500 are not in very good communities/ close to daycares.
We started looking at condos for sale in the same communities and the same condos that are renting for $2500+ have a PITI of about $1800 (including HOA fees). We will not have 20% down payment saved right away but will be able to put in at least 15% of it. What do you wise people suggest in this scenario? Thank you very much!

Nikii

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Re: Buy v/s Rent- what is the best for us?
« Reply #1 on: June 22, 2015, 09:52:49 AM »
Also what do you suggest if we have to move after the next 3-4 years? will it still be a good idea to buy?

Mirwen

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Re: Buy v/s Rent- what is the best for us?
« Reply #2 on: June 22, 2015, 10:11:59 AM »
http://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html?abt=0002&abg=0

This is a very good calculator but I would be very cautious about buying into a (likely) overpriced market.  Those numbers are scary high to me.  I hope there is a very good reason you are moving to this city.  Perhaps after you get to know the city better you can judge that some of the "bad" neighborhoods are not so bad.  For example, I live in a part of town that has a very bad reputation, but I love it.  The 3/2/2 townhomes here sell for well under $100k.  The only bad part in my opinion is the zoned school, but I get around this by sending my kids to charter school.  There is a transportation cost, but it's much less than the $250k we would have to pay for a house in the "good" neighborhood.  Maybe you can find an overlooked neighborhood that you like once you get to know the city and decide if it's likely you will stay long term.

StockBeard

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Re: Buy v/s Rent- what is the best for us?
« Reply #3 on: June 22, 2015, 10:23:05 AM »
Rent from 6 months to 2 years before you make a commitment to buying, would be my suggestion.

We've been renting recently, but that's because we still don't know if we'll stay in the country long term or not.

Nikii

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Re: Buy v/s Rent- what is the best for us?
« Reply #4 on: June 22, 2015, 11:16:14 AM »
"This is a very good calculator but I would be very cautious about buying into a (likely) overpriced market.  Those numbers are scary high to me.  I hope there is a very good reason you are moving to this city.  Perhaps after you get to know the city better you can judge that some of the "bad" neighborhoods are not so bad."

Thank you so much for that calculator- from what it suggests we might be better of buying but again, we will not be buying right away. We will consider buying once we have lived in that area for 6+ months. And yes, the numbers are scary as it is NYC. We are looking in the Jersey City and Secaucus areas, which is still a good 30-40 mins commute to NYC

Jeremy E.

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« Last Edit: June 22, 2015, 11:56:18 AM by Jeremy E. »