Rent or Own?

[NEPA]

Hi, I'm new to the community and looking into purchasing my first home.

I've had family tell me owning a home is more expensive to maintain but it is eating away at me that I'm lining my landlord's pockets every month.

(Decent, livable) homes near me can be bought for $65,000 (~$400/mo@30years) and I'm currently renting an addition from my friend's parents for $550/month all inclusive in cash (good internet, water, electric, and heat). I rent 3 miles from where I work and make $37k before taxes.

I guess my question is, would it be worthwhile to mortgage? Will I get hit with tons of fees/high rates because I am 22 years old? If I need to relocate for a career change, would it be difficult to rent and maintenance the property for profit?

[JLee]

Is that $500/mo including taxes and homeowners insurance?

If so, you're looking at $150/mo for internet, water, electric, heat, and no liability for maintaining anything that breaks (AC, furnace, roof, appliances). That sounds like a pretty good deal.

[NEPA]

Is that $500/mo including taxes and homeowners insurance?

If so, you're looking at $150/mo for internet, water, electric, heat, and no liability for maintaining anything that breaks (AC, furnace, roof, appliances). That sounds like a pretty good deal.

With 10% (6500) down it would be $420/month for the mortgage including taxes and fees. Water and electric together average about 100 a month, internet maybe 40 and gas heat maybe 100 a month for october through february. What bothers me is I won't see any return on the rent I'm paying now.

Here's a link to the home (just an example) for reference.

http://www.zillow.com/homes/for_sale/Plains-PA/62957320_zpid/40360_rid/50000-65000_price/185-240_mp/41.286417,-75.785022,41.244998,-75.863643_rect/13_zm/0_mmm/?3col=true

[JLee]

You don't see any return on the rent you're paying now - correct. However, you also do not have any liability for stuff.  My AC unit at my house in Phoenix failed recently - $524 repair. Water heater, appliances, furnace, roof, general maintenance, etc - all that adds up, plus any projects you will want to do to the house (I built shelves in my garage, had a concrete pad put in next to the garage, etc).

At 10% down you will probably need to pay PMI (20% removes that).

Do you plan on staying in that area for a long time (3-5 years or more)? Would you be able/willing to rent the second bedroom to someone? I was pulling $1100/mo in room rentals for a while in my 3br house (with an ~$850/mo payment), which was a pretty nice deal.

[NEPA]

You don't see any return on the rent you're paying now - correct. However, you also do not have any liability for stuff.  My AC unit at my house in Phoenix failed recently - $524 repair. Water heater, appliances, furnace, roof, general maintenance, etc - all that adds up, plus any projects you will want to do to the house (I built shelves in my garage, had a concrete pad put in next to the garage, etc).

At 10% down you will probably need to pay PMI (20% removes that).

Do you plan on staying in that area for a long time (3-5 years or more)? Would you be able/willing to rent the second bedroom to someone? I was pulling $1100/mo in room rentals for a while in my 3br house (with an ~$850/mo payment), which was a pretty nice deal.

Renting the second bedroom, potentially as I have a few friends renting in the area although rent for a shared living space is normally $400 a month or less here. Living frugally I could have a 20% down payment ready in less than 6 months as I'm able to save ~40% of my income after taxes and luxurious spending.