Paige Posted March 6, 2011 Share Posted March 6, 2011 We are moving in about a month and I am not finding anything I like to rent. We are considering buying but with the housing market and selling our current house at a loss, it is not really something we are excited about either. DH is military. We know that his next position will not last more than a year. On the other hand, we are moving to a very big post and it is very likely that we could stay there for 6-8 years as he moves to positions on the same post. But no guarantee. Living on post is not an option. Our choices are: 1- Rent- Ideally we'd like to rent a nice house in our price range but we've found nothing. There are lots of small, inexpensive houses that we don't like, and many very large expensive houses that we do like, but no mid-sized mid-priced houses that seem acceptable at all. I have been looking for rentals for months and nothing looks promising. The small houses aren't just small- they are small and we don't like the neighborhoods. We could either suck it up for a year and live in one of the small houses or pay more than we'd like for the expensive houses and pray that the military lets us move somewhere else far away once the year is up. But, if we aren't relocated, which is very likely, they will not pay for us to move again. We could be stuck in something we aren't too happy with for a long time or pay to move ourselves. If we wanted to buy at that point, there's still no guarantee we'd be there for several more years and we'd have one less year to build equity before we move again. One advantage is that we could move straight from our house to the new house. 2- Buy- We could buy and get a much nicer home of our choice for a much cheaper mortgage than rent. The difference would be about $500-600 a month compared to rentals of similar homes. We would be committing to trying to stay in this location for at least 3-4 years and there's no guarantee we will care for the area. If the military cannot find DH another position on the same post and we move in a year, we'd have to rent our house because there's no way we could make money or even break even on a sale within a year. We've considered buying a foreclosure and fixing it so that we may see more appreciation within a year. Also, because of the closing date on our current house, when we have to be at the new place, and probably not qualifying for a new loan until our old one is closed (remember- we're selling at a loss so no bridge loans or anything), we'd have to move into a temporary house and leave our things in storage for about a month- maybe longer. We have 2 dogs who would likely need to be in a kennel for that time. Also, where we are moving is our home state. We'd be within about 1.5 hrs of all of our family for the first time and we know the area well. We could really like being home again and I know our families want us to do all we can to stay. On the other hand, after a year of it, we may be wanting to get far away from all the family drama and climate. It's not my favorite climate at all, but it's not horrible either. I may adjust to it again easily. What would you do? Rent or buy? :confused: We are moving the first week of April and I will not be able to go look at any of the houses myself. DH will be scouting out the options and sending me pictures and videos and I'll have to decide based on those. I'm starting to get a little stressed. I had thought that if we waited a nice rental would eventually come on the market but time is getting short and we are not seeing any changes to what is becoming available. Quote Link to comment Share on other sites More sharing options...
lmrich Posted March 6, 2011 Share Posted March 6, 2011 WOW! That is stressful. I would rent at least for now. I think the stress of finding a house while living far away is very hard. It sounds like if you are only there for a year it isn't worth the finical obligations. Could you hire a different realtor? Quote Link to comment Share on other sites More sharing options...
tammyw Posted March 6, 2011 Share Posted March 6, 2011 We are military and we've been there, done that. In your case, I would absolutely at least LOOK at what your options are for buying. Can you find something you love? Especially because you said you could end up staying long term, I'd really consider this. The way the budgeting is with the military, and lack of money, I would bet it's easier to stay in the same location for longer, these days. I just recently heard about something through the military - apparently they have a plan where if you are pcsing, and have to sell your house at a loss, they will reimburse you 90% of what you paid? That might be something to look into since you said you're looking at a loss for your current house, unless you want to rent it out. Where are you moving? Quote Link to comment Share on other sites More sharing options...
regentrude Posted March 6, 2011 Share Posted March 6, 2011 If there is a chance that you may only stay a year, I would rent. Is there any way you can get a six months lease or a month-to-month lease instead of a year? I personally would not worry about the cost of a move in town - I'd just rent a truck and do it myself. I would worry much more about buying a house unseen and there being the possibility that I'd be forced to sell again soon. When we moved to our current town, we rented a house first on a six month lease and then scouted the area for properties to buy once we were there. Quote Link to comment Share on other sites More sharing options...
Renee in NC Posted March 6, 2011 Share Posted March 6, 2011 We couldn't find a rental in our new location that was acceptable - there were places we liked that cost too much and everything in our budget was too small or in a bad area. We have a large family, a lower income, and pets, which made it seem impossible! We did finally end up finding something, but we are paying too much for a house that is too small, but in a good area. We figure we'll be there through our one year lease, and then have a better idea of where we want to be. Maybe we'll stay right there. Maybe we'll move somewhere else all together. I would rent, with the idea that it was only for a year. How small is small? We're going to be 8 in 1200 square feet, but it is laid out well and not much different than the 1300 we have now (according to dh.) For me, first priority was good area, but we are moving to a city that has some pretty bad areas, so it is important to find a safe place. Quote Link to comment Share on other sites More sharing options...
Margo out of lurking Posted March 6, 2011 Share Posted March 6, 2011 Renting is the sure thing, whether you rent cheap (and save a lot of money) or rent expensive. The cons I see of purchasing under the conditions you listed: -uncertainty of the housing market. People don't seem to be buying to "build equity" at this point. You mentioned the possibility of renting the house if you have to move. Have you owned a long-distance rental property before? Would you hire a property manager? (An additional cost.) With home ownership more unstable in this economy, more people are attempting to rent homes, and the market (particularly in a military community) may be flooded with rentals already. -additional cost of dog boarding. -the risks of buying the house unseen. Sure, your dh will see it, but I've been there, done that. I saw the house and chose it; dh liked what he saw on film. We bought it, intending to live in it forever. In reality, we wouldn't have bought the house if we'd seen it in person together, and we moved three years later. If you rent now and decide to purchase a house, your only costs are for a local move. If you do it yourself and/or enlist the help of friends, your costs are nothing. If you are working with a realtor to find a rental property, I'd encourage you to poke around yourself online. Some realtors will only direct clients to houses where they will benefit from the rental. Be sure to check out Craig's List too. Tough choices, but it must be exciting to think about returning home and having the chance to be around family for a while. :001_smile: Quote Link to comment Share on other sites More sharing options...
iamrachelle Posted March 6, 2011 Share Posted March 6, 2011 I'm sure you've looked at these, but just in case: Military By Ownerhttp://www.militarybyowner.com/ offers homes for rent and for sale around various stateside installations. Also HERE is the website the previous poster mentioned about qualifying for aid when you take a loss on your home due to a military PCS. Hugs, Cammy Quote Link to comment Share on other sites More sharing options...
Crimson Wife Posted March 6, 2011 Share Posted March 6, 2011 Having been an Army wife for 5 years, the one thing I learned is that you can't count on anything specific happening. If you plan to stay someplace X years, it's a near guarantee that the military will send you away sooner if you want to stay or else keep you longer if you want to go. The housing market isn't likely to go up (and may still come down some) in the next 18 months because there are still tons of ARM's due to reset in 2012. All the ones written in 2006 and 2007 still need to be worked out of the system before the housing market can stabilize. Quote Link to comment Share on other sites More sharing options...
NoPlaceLikeHome Posted March 6, 2011 Share Posted March 6, 2011 I would rent. Have you looked at apartments in apartment buildings? They are not single houses but you might be surprised and find something that fits your needs. Quote Link to comment Share on other sites More sharing options...
Teachin'Mine Posted March 6, 2011 Share Posted March 6, 2011 Paige I'd talk with some realtors in the area and see if they would be willing to ask any of the sellers if they'd be willing to do a lease with the option to buy. It's a soft market, and you may get some takers. Let them know exactly what types of house and features you're looking for. If realtors aren't interested in doing this, as it may affect their commission, you might try contacting the sellers directly. Then again, there are always houses being sold by realtors who bought them as investments, so they might definitely be interested. Quote Link to comment Share on other sites More sharing options...
Paige Posted March 6, 2011 Author Share Posted March 6, 2011 (edited) I just recently heard about something through the military - apparently they have a plan where if you are pcsing, and have to sell your house at a loss, they will reimburse you 90% of what you paid? That might be something to look into since you said you're looking at a loss for your current house, unless you want to rent it out. Where are you moving? We are using the military HAP program to sell our house. It is a lifesaver in our area! Unfortunately, it means closing will take a long time so we will have to rent to our buyer for a few months to meet her closing schedule. That means we won't be eligible for the VA loan again until after we move out. Which is fine when we rent but not fine for buying. We may qualify for other loans, we haven't even looked. The area we are moving to is not flooded with rentals because the post is expanding and there aren't enough houses yet to accommodate the influx of new people. That's why we can't find a house- because all the people who got there before us took it! Renting the house out when we move shouldn't be too hard because of the military community and because we have family that works in real estate in the area who could help us. We are working with a realtor and I've been scouring everything I can online but there's nothing for people with 3 pets in our price range. I'm also nervous about buying because I think this area is overpriced still compared to the rest of the country. Sellers have been sitting on houses for over a year and are not lowering their prices. We will ask our realtor to see if anyone will be willing to rent. I've thought of calling people whose houses have been listed for a long time but I was unsure if that would be rude or too pushy. I told DH we should rent and then look to move but he is adamant that he hates moving and we will not move twice. I don't want to be locked into something yuck or paying more than we should for years and years! I did find a nice enough furnished house that will rent month to month while we look. I think that is our best bet but it would still mean putting the dogs in a kennel for a month or two because it is not pet friendly. Our family can't keep them for us for that time. Both of our parents just had surgery and are unable to care for them. The money we would be overpaying in renting for 1 yr vs buying a similar house is $6-7,000! We don't want to be in an apartment. We have 2 medium sized dogs and a cat and the dogs need to be able to go outside as they please and have lots of room to play. One of our dogs is not in very good shape and cannot do stairs and I can't carry him, so we must have a ground floor exit to the backyard for him. I know part of our problem is that we are soooo picky!! Edited March 6, 2011 by Paige Quote Link to comment Share on other sites More sharing options...
tammyw Posted March 6, 2011 Share Posted March 6, 2011 (edited) Definitely contact some of the owners of homes that have been on for a long time - they might consider. When we moved from NC to Hawaii, the market was in a downturn. We had it up for sale, but a good military family contacted us wanting to rent for three years and we decided to do it. You just never know. Military towns though, as you said, are great for rentals. So if you do buy a house, do so with the intention of renting it out if/when you leave, and that way you won't be worried. It sounds like you'd be able to rent it out for a good deal more than your mortgage would cost you, so it seems quite smart really. ETA: We are REALLY picky also, so I completely understand where you are coming from. Edited March 6, 2011 by tammyw Quote Link to comment Share on other sites More sharing options...
BlsdMama Posted March 6, 2011 Share Posted March 6, 2011 Watching my friends faced with a hard situation right now of trying to rent out their home as they are facing a military move, I absolutely would NOT buy, especially as it's so short term. What do you do from 10 states away when the renters have something they needed fixed? What if it's major? What if they cause damage? You'll have to hire all this done. You will need to carry landlord insurance as well. With this market, there is absolutely NO guarantee that the home you buy, you'll be able to sell in a year. Then you are faced with BAH trying to cover two homes, in case you don't have steady renters, or worse, non-paying renters. Could you really afford that? Their situation is worse because BAH has lowered since they moved there. So, while they were "grandfathered" in and the fluctuating BAH didn't directly affect them, they can no longer get the rent for their home that will cover the house payment. So, faced with an overseas move, they are going to have to cover both mortgage and a place in Germany on BAH or their income and HOPE they end up with reliable renters with no problems or necessary fix-its. Too much stress for me. When we were military we lived in military housing, but I can understand it isn't for everyone. I'd rent. Quote Link to comment Share on other sites More sharing options...
Paige Posted March 17, 2011 Author Share Posted March 17, 2011 I wanted to update and say I think we will be renting from a house that was for sale! DH called some places we liked but weren't for rent and one of them said ok!! I am so excited and relieved. It seems like we are an answer to their prayers just as much as they are an answer to our prayers. We haven't signed the lease yet but DH has been there a few times and is going tomorrow. They said they thought he should have keys by the first of next week! It is so much nicer than anything else we have seen. Thanks so much for the encouragement to call the houses for sale! Quote Link to comment Share on other sites More sharing options...
Margo out of lurking Posted March 17, 2011 Share Posted March 17, 2011 It seems like we are an answer to their prayers just as much as they are an answer to our prayers. Well, THAT is awesome!!!!!!:party: Quote Link to comment Share on other sites More sharing options...
tammyw Posted March 17, 2011 Share Posted March 17, 2011 Ah! Very good news indeed :) Quote Link to comment Share on other sites More sharing options...
abacus2 Posted March 18, 2011 Share Posted March 18, 2011 I wanted to update and say I think we will be renting from a house that was for sale! DH called some places we liked but weren't for rent and one of them said ok!! I am so excited and relieved. It seems like we are an answer to their prayers just as much as they are an answer to our prayers. We haven't signed the lease yet but DH has been there a few times and is going tomorrow. They said they thought he should have keys by the first of next week! It is so much nicer than anything else we have seen. Thanks so much for the encouragement to call the houses for sale! That is wonderful! I'm so glad you found something. I was going to suggest looking at townhomes and duplexes with yards if you weren't already. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.