Author Topic: Keeping Renting or Buy  (Read 3396 times)

Wolf_Stache

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Keeping Renting or Buy
« on: December 31, 2013, 05:01:01 PM »
I'm currently debating buying, but am wondering if I should just keep renting a while longer.

Reasons I want to buy: I'm currently living in an old, old, old house that was vacant for a long time before we started to rent it. It takes forever for the rental company to respond to major things:

Ie, so far in the 3 years I have lived their the steps to front door collapse, the sink in the only bathroom fell off the wall, and the gutters fell off the house - average response time about 3 weeks. We had to climb a ladder to get in the front door for about 2 months.

Current rent $1000 a month for a massive three story house, probably about 3000 square feet all total (although we actually only live in/use the main floor of about 1000 square feet). Utilities run around $200 a month

The house around the corner is up for sale for very cheap for the area $155K, but we think we can get it for less (Seattle, Beacon Hill Area). The house is about 10 years newer than the one we rent, about half the size. The downfall is that it is a foreclosure, and was foreclosed on in the middle of a house renevation so a lot of things are literally half done. Utilities will be much cheaper, I think, because all the appliances are new and its half the size.

I have about $15000 I can put down.

I'm I crazy, should I just keep renting?

Edit to add: I make about $3600 net each month
« Last Edit: December 31, 2013, 05:10:35 PM by GamerGirl »

marty998

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Re: Keeping Renting or Buy
« Reply #1 on: December 31, 2013, 05:06:29 PM »
Can you do both? Keep renting, and buy the house with a view to finishing the renos and renting it out afterwards?

There's always more possibilities.

Wolf_Stache

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Re: Keeping Renting or Buy
« Reply #2 on: December 31, 2013, 05:11:46 PM »
Honestly never thought about that. It would be a possibility.

I was looking at it mostly as a principle residence.

_JT

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Re: Keeping Renting or Buy
« Reply #3 on: December 31, 2013, 06:23:48 PM »
You should familiarize yourself with the local tenant laws. I lived in Seattle for a bit, and you have recourse for landlords who suck.

arebelspy

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Re: Keeping Renting or Buy
« Reply #4 on: December 31, 2013, 06:58:08 PM »
Have you tried the New York Times Buy vs. Rent Calculator?

http://www.nytimes.com/interactive/business/buy-rent-calculator.html
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Wolf_Stache

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Re: Keeping Renting or Buy
« Reply #5 on: December 31, 2013, 11:05:53 PM »
Have you tried the New York Times Buy vs. Rent Calculator?

http://www.nytimes.com/interactive/business/buy-rent-calculator.html

Yes, it says buying is better.

But what about the repairs issue? I've never attempted repairs that big before. The most I've done before is laying hardword floor by myself. Is it doable to attempt them on my own using youtube videos for instruction?

Also, my significant other is worried about the repairs because one of the things they did was to cut off the front of the house and expand it with a module. Does that affect the integrity of the house? Or is that a question i should ask the inspector?

KingCoin

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Re: Keeping Renting or Buy
« Reply #6 on: January 01, 2014, 03:31:17 PM »
Why not rent a place with less problematic management?

Also, when using the rent vs buy calculator, be sure to compare like properties (comparing your current rental to the foreclosure doesn't really make sense if one is twice the size of the other). How much would it cost you to rent a place similar to the foreclosure property?

And then of course there's the question of how likely you'll want to stay in the place you buy long term. Will you want to upsize if you have kids or relocate for another job? Are you married to your SO? How will ownership arrangement work? The flexibility that renting affords you is one thing the rent-vs-buy calculator doesn't value, but is well worth considering.
« Last Edit: January 02, 2014, 08:05:19 AM by KingCoin »

Wolf_Stache

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Re: Keeping Renting or Buy
« Reply #7 on: January 02, 2014, 01:06:19 PM »
Why not rent a place with less problematic management?

Also, when using the rent vs buy calculator, be sure to compare like properties (comparing your current rental to the foreclosure doesn't really make sense if one is twice the size of the other). How much would it cost you to rent a place similar to the foreclosure property?

And then of course there's the question of how likely you'll want to stay in the place you buy long term. Will you want to upsize if you have kids or relocate for another job? Are you married to your SO? How will ownership arrangement work? The flexibility that renting affords you is one thing the rent-vs-buy calculator doesn't value, but is well worth considering.

I've tried to find something else in my price range to rent, but with 3 cats and a dog the rental market in Seattle is very very limited. I work at the south end of the Seattle downtown, and I don't want to get too far away from there since I bicycle commute.

I do have to say, this landlord is about 1000 times BETTER than my last one. The last one we actually got so fed up we broke lease and moved out early - not working fridge, rats (in a 3rd floor apartment!), druggies breaking down the STEEL security door, black mold were just the start of the issues there.

My SO and I are not married, and we can't have kids together (LGBT relationship). Ownership would be 100% mine, with my SO paying me rent.