Tuesday, October 7, 2008

To Buy or Not To Buy

So.... We are stuck right on the fence. Should we buy and gain instant equity - taking the risk of owning property in this scary market? Or should we rent - free from the commitment of ownership but not gaining any equity and "throwing away" our rent money?

It seems like renting would be a good option right now. To not be tied down to property in light of America's financial crisis sounds good. But if we buy and weather the recession, we will probably come out on top in the end.

What is the smartest thing to do?

2 comments:

Dan said...

I'm definately no expert, but you will be there at least 2 more years. It does seem silly to throw away money every month instead of "socking it away" into equity. If you found a house in a good neighborhood for a good price, you should buy. It is definately a buyers market right now (as you well know). You should be able to find something. DON'T RUSH INTO ANYTHING,though. Take a little bit of time, if you can, to check out the city. Where's the best place to be? You also, don't want to be strapped down where you both HAVE to work to make ends meet. That's not any fun and can lead to a lot of trouble. Most of all, PRAY about it. You CAN make a wise decision!

juneheller said...

I'm one of Shannon's friends, I'm a realtor. I would tell you to go into your bank and talk to one of the loan officers. Find out from them what loan amount you could live comfortably with, and figure in the cost of taxes and insurance. Then browse through your real estate section or realtordotcom to see what that money will buy you today. It is very likely that you will have to come up with 20% or more as a down payment in this credit environment.
If you like what you see out there, find a realtor and look at houses (I'd be happy to refer you to a local realtor). Make sure you work with a realtor with experience. If you are in a good position to buy, you could end up with a great deal. ( Just so you know, short sales and foreclosures are not always the best deals).
If the market doesn't look good to you after careful research and prayer, then rent.