Buy or Rent????

[k_smittay]

I was thinking about buying a house upon reporting to API. I am married, and my wife is obviously coming with me. Is it pretty easy to sell upon leaving, or difficult? I am just curious. I would appreciate any guidance that anyone can give me.

Thanks in advance.

While it is probably best to rent, my wife and I bought a house just over 2 years ago and we are going to sell it now. The market isn't the best, but if you don't try and list your house for top dollar they still sell relatively well. Even though we have only owned it 2 years, we are looking at making $10-15,000, after all the fees (agents, if we cover closing costs, extra crap). If you shop around and try and buy it yourself without an agent, you can still get a pretty good deal, especially if you buy a house that needs just a little bit of weekend work and curb appeal.

Just remember, after your stay while renting you walk away with nothing. If you are cool with that, right on.

 

[S.O.B.]

While it is probably best to rent, my wife and I bought a house just over 2 years ago and we are going to sell it now. The market isn't the best, but if you don't try and list your house for top dollar they still sell relatively well. Even though we have only owned it 2 years, we are looking at making $10-15,000, after all the fees (agents, if we cover closing costs, extra crap). If you shop around and try and buy it yourself without an agent, you can still get a pretty good deal, especially if you buy a house that needs just a little bit of weekend work and curb appeal.

Just remember, after your stay while renting you walk away with nothing. If you are cool with that, right on.

If that's all your going to make then rent a place under your BAH and call it profit. I think your assuming a large risk for a small return

 

[k_smittay]

If that's al your going to make then rent a place under your BAH and call it profit. I think your assuming a large risk for a small return

Thats up to you. I am pretty happy with my return. I will be making a good chunk of my BAH back. Plus have a little money for a down payment on the next place.

 

[MasterBates]

Yeah the market may not be that bad where you are, but I am stuck with a house in JAX because the ex can't sell it for more than what is owed on it.

Market crashed there pretty bad.

However, I just pay the mortgage in lieu of alimony, and its not any more money out of my pocket than I would have already..

If you are an ENS/JG trying to pay a mortgage on a house waiting to sell, and having to live somewhere its hard to make money on BAH (Krock) you could be in a hurt locker, even if you are DINK.

 

[FLYTPAY]

Good luck. If you have any questions, feel free to PM me.

Why is your Avatar Spencer Pratt and Heidi Montag in a pumpkin patch?....that ruined my Saturday afternoon.

 

[S.O.B.]

Thats up to you. I am pretty happy with my return. I will be making a good chunk of my BAH back. Plus have a little money for a down payment on the next place.

This is just an example:BAH 1600 Rent 1100 Mortgage 1600. If you rent you make 6K per year and have no risk. Of course this does not assume the tax advantage. I'm not saying that renting is the way to go but if you only plan on owning the house for two years to make 10-15K, in my opinion that's a small margin between winning and losing. My advice would be keep the home and rent it out. Even if you lose a little each month you will make it up in taxes. Getting someone to manage the home is easy and relatively cheap.

 

[k_smittay]

This is just an example:BAH 1600 Rent 1100 Mortgage 1600. If you rent you make 6K per year and have no risk. Of course this does not assume the tax advantage. I'm not saying that renting is the way to go but if you only plan on owning the house for two years to make 10-15K, in my opinion that's a small margin between winning and losing. My advice would be keep the home and rent it out. Even if you lose a little each month you will make it up in taxes. Getting someone to manage the home is easy and relatively cheap.

Very true, I understand where you are comming from.

I just don't like landlords, want to bring my dog without having to pay "pet fees", No rental contracts or deposits to worry about, continue improving my credit score.... and my wife likes to paint the rooms of the house.... can't do that in a rental!

P.S.- About getting a property manager to rent out your place, we looked into it.. it is not very cost effective. They want 1 month full rent each year, plus a 5-10% monthly rental fee depending on which company you go with. If you have a tight budget, like myself, that would be a losing deal, and you still have to provide repair costs for the property if your tenants break things (which they will).

 

[JMMH]

HA! Sorry about the Avatar... but it's Halloween, it's supposed to be scary! And they're SOO in LOOOOVE.

Bonus points that you knew their last names.

 

[S.O.B.]

Very true, I understand where you are comming from.

I just don't like landlords, want to bring my dog without having to pay "pet fees", No rental contracts or deposits to worry about, continue improving my credit score.... and my wife likes to paint the rooms of the house.... can't do that in a rental!

P.S.- About getting a property manager to rent out your place, we looked into it.. it is not very cost effective. They want 1 month full rent each year, plus a 5-10% monthly rental fee depending on which company you go with. If you have a tight budget, like myself, that would be a losing deal, and you still have to provide repair costs for the property if your tenants break things (which they will).

Our relator in P-cola charged 7% and I didn't hear a word for years. The checks were deposited in our account and it was easy. The house was new so that helped nothing broke and it was very low maintenance.

 

[panzerfinder15]

I bought...best decision ever

I bought a home just outside the back gate in the Emerald Shores neighborhood. I can tell you that it is wonderful having your own house to do with what you want and not have a dang landlord. True, you can rent for a little cheaper, but I have an awesome home for 1200 a month (not including taxes). 1550 sq. ft and 1/4 acre with pool house/shed and a small in ground pool. There are two things to really consider. When are you EVER going to be stationed in a market where you can buy the aforementioned house for 175,000 dollars (P-Cola is the second cheapest housing market of any major Navy base), and two, are you a married NFO like myself and guaranteed (mostly) to be here for 2+ years? I plan to rent this house out after I get stationed somewhere else and hang on to it until I figure out if I'm ever going to be stationed back here as an instructor or if I do the NFO to pilot program. I'm the type where I will always improve the residence I live in, so buying is the best option for me. If you don't like tinkering and are content with decent dwelling places, there are 1200 sq ft. apartments for rent 1/2 mile from the back gate for only 700-900 a month and rental houses go for 1000-1400 in my neighborhood. Home insurance through USAA is only 1100 a year, so it's bearable. The final consideration is if a major hurricane comes through. If your home survives, like mine did during Ivan, then the housing market nearly doubles due to an increased demand and provides a quick sell market, but if your house gets demolished, then at least you get something back for your insurance payments. If possible, I want to buy a house at every base I'm stationed at, rent them out so they pay for themselves, and then sell them all when I retire...instant millionaire! Real estate long term always rises, so it's really only risky if you try to ride the buble, plus buying in a declining market means it has to go back up someday...hopefully. Oh yeah, and do not go with interest only, or any other type of shaddy mortage that can get you in trouble if the market does totally crash. Stick with traditional or 80/20.

 

[k_smittay]

Oh yeah, and do not go with interest only, or any other type of shaddy mortage that can get you in trouble if the market does totally crash. Stick with traditional or 80/20.

Concur, only way to go. 30/15 year fixed with a down payment. Many people have gotten into trouble with adjustable ARM's and balloon payments yada yada. If you don't have the credit to buy a house traditionally, then wait. Don't dig yourself a hole already.