Author Topic: Housing Dilemma  (Read 2488 times)

DocLago

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Housing Dilemma
« on: June 30, 2013, 06:53:23 PM »
So a little background.  I'm a 28 year old male, currently a specialist in the U.S. Army.  In February 2014 I will be concluding my contract and will not be reenlisting.  At the conclusion I will be moving to Pennsylvania in order to begin nursing school.  I currently have plans in the works to make sure that upon leaving the Army all debts will be paid.  Car note will be paid off early february, credit cards are currently at 250$ on zero interest and will be paid off by October(can pay now but there is no difference between payin now and over the course of the next few months).  I am already paying double my monthly payment on my car in order to have it finished by February.  And from February 27-April 27 I'll still be getting paid full pay and benefits.

The conflict I have mainly comes up with housing.  Based on the financial projectons I have made on February 27th when I begin my drive up north I will have 15k in a savings account and roughly 5k in cash/checking.  The nursing school I will be going to is a satelite school from a major university so there is no housing/dorms.  School doesn't start until September 2014 so from February - September when i begin nursing school I will be free to do what I choose.  The plan is to work as an EMT which means a severe pay cut but at least income.  And upon beginning school will be paid ~1000$ a month for housing plus full tuition from the military.

My parents own 2 houses, 1 a mile from the school, which they live in.  And a house about 10 miles from the school.  They have openly given me a few options, 1. Live in the house with them, they have a spare bedroom as well as a basement that is livable. 2. Rent the 2nd house. 3. Buy the 2nd house.  They wouldn't expect rent if I was to move in with them on option 1, and I actually doubt they'd accept it if I offered, but I don't know how I feel about being a 28 yo leaving in the basement/spare bedroom.  Option 2 I'd probably be looking at 500-600 a month for rent.  I believe they paid 55-63k for the 2nd house but my father has done many things to enhance the house so in theory it is worth 75k.  Again I'm sure my father would sell it to me for what he paid, but after he has put in a few K and many man hours I don't feel right about low balling him on that either.

School will be paid for for 3 years and I'm looking at being at the school for 2-4 years.  So financially speaking which would be the better option?  Live for free, rent or buy.  I like the property they have on the 2nd house, and the house is livable and a nice little house.  Good for a single person or a family starting out if things go that way in the near future.  And my father is a very handy person so any maintenence can be done on the weekend with me and him.  It's close to schools, parks, a small town.  With V.A. and the other military benefits I feel like all the options available to me are viable.  And a 30 year VA loan on a 70k property is almost manageable scrounging through couch cushions.

Any help would be thankful, I'm 28 years old and very good with my money and don't spend crazy stupid like most of the people I know.  However, when it comes to the big ticket decisions y'all are smarter than I am for sure.  Thanks in advance.

 

ep114

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Re: Housing Dilemma
« Reply #1 on: June 30, 2013, 07:14:42 PM »
What nice parents you have! I think it will be a benefit to have them nearby as you transition to your next phase.

I think buying the 2nd house sounds intriguing.  How is the housing market in that area? Do you think you'd want to stay there?  How easy is it for an RN to get hired right out of school in that area?  If you move, would you be interested in renting the house out? (I've learned from my nursing friends that contrary to popular belief it is not always easy for nurses to find a job in their preferred area, especially new graduates)

DocLago

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Re: Housing Dilemma
« Reply #2 on: June 30, 2013, 07:25:01 PM »
Overall its a small township area with half a dozen hospitals in the area, so either the area is saturated with budding nurses looking for a job or they are in a deficit, really could go either way and i'm not totally sure.  During the time I'll be going to nursing school I'll also be getting my paramedic license and know for sure I have a guaranteed job in the area with that worst case scenario. 

Also, the good part of it being in a small township my family knows many of the influential people in the area so that is a bump in my direction as well.  In essence I know I will have jobs waiting for me whichever way I decide to jump.  I have grown up in big cities my whole life and have always wanted to live in a small town so when my parents moved to where my dad grew up it just seemed like a good fit, however, who's to say after a little while I miss the bright lights of a big city.

SunshineGirl

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Re: Housing Dilemma
« Reply #3 on: July 02, 2013, 09:22:03 AM »
Gosh, the idea of that $1000/month housing allowance going right to a mortgage or to your parents in the form of rent seems awesome. What's really nice is you know the house has been maintained, and that the current owner won't be trying to hide anything or take advantage of you.

Just for reference, have you looked at other houses in the town? I'd decide what you want in a house, and go from there. I know for me, being in a walkable area is very important. If the house in question suits your long-term desires, it may be a good buy.