Do any of you rent, even though you could buy?

[DawnM]

Kind of an odd question and I never thought we would even consider it, but we have some reasons to look at renting for a couple of years before buying.  

 

We may not do it, but we are seriously considering it.  The area we want to rent in would potentially be right on the train/bus line and my son with Asperger's could walk to it, making it much easier for us to not have to give him rides.  Please don't suggest we get him to drive, right now it is not happening and I don't feel like explaining it anymore.

 

This rental would also allow my youngest son to go to a fantastic high school, my husband to potentially walk to work, and for me to go against traffic to a location I think I may be able to get a job in.

 

Our thought is that then, once oldest is out of his college and youngest is out of HS, we could then buy in an area a little further out (no train/public transportation within walking distance) and it would be less expensive and we could get a smaller place since we most likely wouldn't have as many kids living at home.

 

It is just an odd concept to me, but in looking at costs......it actually makes sense.  Rent for cheaper than mortgage, save the difference (we would be paying interest and property taxes on a purchase home, so the rental isn't much more than that!) and have a very large downpayment, potentially 1/2 to 3/4 to put down on a house in a high cost of living area.

 

We go back and forth with this, but it is on the table.  

 

Anyone else rent due to knowing you will only be in an area a short time, or other reasons, even though you *could* buy?

[Insertcreativenamehere]

We rented a townhouse for four years, even though we could easily have bought. We didn't know exactly where we wanted to live long-term and the costs of buying and selling houses add up quickly. 

[Laura Corin]

We have done that when buying was not a good investment at the time (due to location, market, etc.)

[Runningmom80]

We've been renting for the past 10 years. We needed the flexibility (due to possible job related location changes) for a while and it was just easier. It's been great honestly. The owners fix everything in a timely manner, and don't mind if we paint rooms different colors.

 

Cons would be not being able to change certain things due to either not being allowed or not wanting to invest in a house you don't own.

 

Lots of people would say we've been throwing our money away for the past 10 years, but we don't see it that way. We've loved the flexibility, and living in a house low stress because we don't have to worry about repairs.

 

Now that we are house hunting, I'm really nervous I'm going to miss renting!

[HomeAgain]

We are renting this time.  It makes more financial sense while ds is in college, and it lets us get to know the area before we opt for a permanent residence - something we didn't do at our last home.  It would have been a good idea, though, since our previous home was right in the path of migrating tarantulas.  1. I didn't know they migrate. and 2. Definitely wasn't ready that first year! :scared:

 

 

[Spryte]

I think it sounds reasonable, given what you describe.

 

We have done it, years ago, while checking out a new area, deciding if we wanted to stay long-term. So glad we did, as we opted to stay in the general area but did not enjoy the immediate surroundings that we'd initially loved. We needed to move 30 minutes close to a city. Had we bought first, it would have added complications.

 

We also considered it two years ago, though only for a year - we thought of renting a small place in the city and storing most of our stuff. Doing so had its appeal, but the finances didn't make sense, so we went another route.

[Spryte]

We are renting this time. It makes more financial sense while ds is in college, and it lets us get to know the area before we opt for a permanent residence - something we didn't do at our last home. It would have been a good idea, though, since our previous home was right in the path of migrating tarantulas. 1. I didn't know they migrate. and 2. Definitely wasn't ready that first year! :scared:

Migrating tarantulas!

 

Aaaaaghhhhhhhh!

[DawnM]

We are renting this time.  It makes more financial sense while ds is in college, and it lets us get to know the area before we opt for a permanent residence - something we didn't do at our last home.  It would have been a good idea, though, since our previous home was right in the path of migrating tarantulas.  1. I didn't know they migrate. and 2. Definitely wasn't ready that first year! :scared:

 

 

WHAT?????   :scared:  :scared:  :scared:

[DawnM]

Thanks for the replies so far.

 

We have known 2 people who have lived in this particular area we are looking and both have loved it.   The HOA fees are on the higher end, so renting actually eliminates those but allows you access to everything on the property.  We would be in at least a 3 bedroom two story kind of like a townhouse, but with no walls shared with anyone, if that makes sense.

 

The dog complicates things.....but we will figure it out.

[bettyandbob]

Since you have kids getting ready for college, would the money you are saving affect qualifying for aid. I don't know how FAFSA works. Do they look at money in done sort of savings account as there to spend on college as opposed to money tied up in equity.

 

Aside from that I think you have good reasons to rent.

[FaithManor]

We will be doing that at the end of dh's career. This area never recovered economically, and due to some extenuating circumstances never will so we lost over $100,000 in equity that is not coming back. When we leave, we'll have to give the place away. For us to be locked into a longer term mortgage without a huge down payment due to the loss on this house doesn't make sense. DH will also be traveling a LOT for the last few years of his career before retiring. I do not want the responsibility of maintenance on a home while working full time and dealing with my medically fragile mother and his elderly mom. Renting will give me the necessary freedom, and as much as I'd like a place with a yard, a condo or townhouse with a management company that takes care of lawns and landscaping is likely the scenario until he retires so we aren't dealing with yard work.

 

We need the flexibility of not being locked in just in case they send him to Ireland for a year. We can get out of the rental a whole lot easier than a mortgage. I can't work full time, take care of the elders, juggle the college kids needs, and keep a place organized and spotless for showings hoping against hope that it will sell.

 

Once the kids are out of college and mother in laws are no longer with us, buying may make sense again. It just depends. If our kids are all spread out around the country, I'd rather not have much house maintenance and responsibility so we can travel when dh retires.

 

There are a lot of life circumstances that can make home ownership less than ideal.

[creekland]

When we move to a new area we always rent for a year first.  We simply feel it makes sense to get a real feel for an area and how things actually are rather than using best guesses.  We don't actually save any money since we're not building equity and all taxes/fees, etc get passed on to the renter, but it can save buying/selling costs if we don't end up liking the spot we thought we would (which happened once).

 

If we decide to buy a snowbirding/rental condo for the second half of our life, we'll do the same - just to be sure we like that area too. 

[HomeAgain]

WHAT?????   :scared:  :scared:  :scared:

 

Every August. :willy_nilly:

 

Looking positive, we did eventually get used to it and the wolf spiders and just gently shooed them out - except for Hairy Houdini who flattened himself to fit into the fireplace crack and wouldn't leave for 3 weeks.  The scorpions got a thousand deaths, though.  I wasn't playing nice with them.

 

Have I mentioned how glad I am to have moved? :D

[Ottakee]

I totally understand the transportation thing. That alone makes the rental option very appealing. I have 3 young adults that will never drive and live rurally so that would be a huge plus for me.

[FaithManor]

Uhm tarantula migration! Wrong, just wrong very wrong.

 

We have an acquaintance that bought a property whose previous owners did not disclose that it had a snake infestation. SNAKE PIT! Writhing, breeding snakes about fifty feet from the house. No joke. Apparently snakes have breeding places that they return to year after year and there is pretty much no way to discourage this.

 

I have a way. I suggested Napalm followed up by a small nuke. They were not amused.

[HomeAgain]

Uhm tarantula migration! Wrong, just wrong very wrong.

 

We have an acquaintance that bought a property whose previous owners did not disclose that it had a snake infestation. SNAKE PIT! Writhing, breeding snakes about fifty feet from the house. No joke. Apparently snakes have breeding places that they return to year after year and there is pretty much no way to discourage this.

 

I have a way. I suggested Napalm followed up by a small nuke. They were not amused.

 

NO NO NO NO NO

 

:willy_nilly: :willy_nilly: :willy_nilly: :willy_nilly:

 

I draw the line at spiders.  Snakes would have had me running for the hills.  Not even an option.  We used to get baby blind snakes in the house and that was creepy enough - and they are the size of earthworms.

[FaithManor]

NO NO NO NO NO

 

:willy_nilly: :willy_nilly: :willy_nilly: :willy_nilly:

 

I draw the line at spiders.  Snakes would have had me running for the hills.  Not even an option.  We used to get baby blind snakes in the house and that was creepy enough - and they are the size of earthworms.

I am convinced that encounters with snakes is the historical cause of the "scorched earth approach" of military policy.

[Annie G]

Every August. :willy_nilly:

 

Looking positive, we did eventually get used to it and the wolf spiders and just gently shooed them out - except for Hairy Houdini who flattened himself to fit into the fireplace crack and wouldn't leave for 3 weeks.  The scorpions got a thousand deaths, though.  I wasn't playing nice with them.

 

Have I mentioned how glad I am to have moved? :D

 

 

Um...where was this Hellish place? Because not only do I not want to live there, I want to be sure I never visit the area in August. 

 

You are a brave woman. 

[Carrie12345]

We're not, but I can see your reasoning.

 

I want to move, but I have 3 teenagers who are most likely going to leave the nest in just a few more years. I think I'd still like a larger house, considering the odds on grandchildren from 5 kids, but who knows? It's a lot to mull over.

[vonfirmath]

Kind of an odd question and I never thought we would even consider it, but we have some reasons to look at renting for a couple of years before buying.  

 

We may not do it, but we are seriously considering it.  The area we want to rent in would potentially be right on the train/bus line and my son with Asperger's could walk to it, making it much easier for us to not have to give him rides.  Please don't suggest we get him to drive, right now it is not happening and I don't feel like explaining it anymore.

 

This rental would also allow my youngest son to go to a fantastic high school, my husband to potentially walk to work, and for me to go against traffic to a location I think I may be able to get a job in.

 

Our thought is that then, once oldest is out of his college and youngest is out of HS, we could then buy in an area a little further out (no train/public transportation within walking distance) and it would be less expensive and we could get a smaller place since we most likely wouldn't have as many kids living at home.

 

It is just an odd concept to me, but in looking at costs......it actually makes sense.  Rent for cheaper than mortgage, save the difference (we would be paying interest and property taxes on a purchase home, so the rental isn't much more than that!) and have a very large downpayment, potentially 1/2 to 3/4 to put down on a house in a high cost of living area.

 

We go back and forth with this, but it is on the table.  

 

Anyone else rent due to knowing you will only be in an area a short time, or other reasons, even though you *could* buy?

 

Not currently, but I have done it in the past.  We sold our home in Bellevue, WA and knew we would be moving out of the area so instead of buying again, we rented. We put the money aside in a savings account for "ONe Day when we are ready to buy again" It gave us more flexibility to move.  When we moved to Austin, we rented for... 4 years before we bought.  We wanted to be settled and figure out where we wanted to live before we bought. AS it was, we bought a year before we were completely ready due to not wanting to move --again_ (We lived in 3 different places in those 4 years and were not able to continue where we were). But it turned out to be the right decision

[DawnM]

Oh.my.word. My eyes are bugging out of my head right now. Thanks to this thread, I may never, ever buy another house again. 😱😱😱

My vote is for you to RENT!

 

:lol:   Right?

 

Our first home purchase was at the foothills in Altadena, CA.  Behind us was mountains and to the side was a washbasin.  We often heard the coyotes coming down at night and we would hear cat screeches as they tried to catch them.  And we sometimes saw rattle snakes.

 

Mind you, I grew up in Africa so this was small potatoes to me.

 

But once I had little kids, I worried about things like bobcats and mountain lions coming down into our yard.  So, we moved. 

 

A couple of years later, I ran into the man who purchased our house.  He was a single dad of two kids.  He told me that he had had 2 cats eaten by coyotes and his 45 pound dog had been taken by a mountain lion (the mountain lion cleared the 4' fence with the dog in its mouth!!!!!!!!!!!!!!!!!!!  He chased it up the washbasin a bit but it was too fast and he assumes the dog was already dead.

 

A few months later his daughter begged and begged for another pet.  He got her a kitten.  They decided to watch it carefully.  One evening they had dinner on the back patio (that my husband built!) and were playing with the kitten only to watch in horror as an owl swooped down and carried it off in front of the little girl.   :crying:

 

Again, I was glad I had moved, I would have been out there with tiny toddlers.  

[DawnM]

Uhm tarantula migration! Wrong, just wrong very wrong.

 

We have an acquaintance that bought a property whose previous owners did not disclose that it had a snake infestation. SNAKE PIT! Writhing, breeding snakes about fifty feet from the house. No joke. Apparently snakes have breeding places that they return to year after year and there is pretty much no way to discourage this.

 

I have a way. I suggested Napalm followed up by a small nuke. They were not amused.

 

 

You mean this story, in Idaho, that was on the news and on TV a couple of times?

 

https://www.cbsnews.com/news/snake-house-turns-dream-to-nightmare-in-idaho/

[Hikin' Mama]

I think your reasons sound perfectly logical. I used to think buying was the way to go, if you could swing it financially. But I've changed my mind. If we move away from this area (I want to, hubs doesn't, but you never know how he might change his mind ðŸ˜), we will definitely rent first so that we have plenty of time to figure out what house we want and what location would best suit our needs. Buying a house is a commitment and I don't want to rush into it if I don't have to.

[HomeAgain]

Um...where was this Hellish place? Because not only do I not want to live there, I want to be sure I never visit the area in August. 

 

You are a brave woman. 

 

LOL

 

It's Texas, the part that nobody goes to without being forced.  Definitely not a vacation spot.  But tarantulas migrate throughout the southwest so it's always good to check the area before you go.  Pro-tip: if the state park a mile away has a special time to view the migration, it's probably not the best place to buy.

 

Live and learn. :)  Our new place has its own issues - ticks, slugs, nothing major.  I did get a coyote wandering lost across my yard one day and a hedgehog eating my garden until he realized the border was all hot peppers.  He hasn't been back. :D

[G5052]

If I moved to a very unfamiliar area, I'd rent for a year while I investigated.

 

I may be in a situation in the future where I couldn't afford to buy in the area where we'd want to live but could afford to rent. If that happens, of course I'd rent. To me, the area comes first, assuming we can afford it.

[DawnM]

If I moved to a very unfamiliar area, I'd rent for a year while I investigated.

 

I may be in a situation in the future where I couldn't afford to buy in the area where we'd want to live but could afford to rent. If that happens, of course I'd rent. To me, the area comes first, assuming we can afford it.

 

 

Definitely more than a year, probably 3-4, but we would know that going in (wouldn't want youngest to have to change schools for high school if at all possible.)

 

DH is actually ok with this idea and he even suggested it, which is unlike him.  I think the idea of walking to work and not having to worry about getting oldest anywhere is really appealing to him.  I don't know that he would ever agree to actually buy in that same area as it is really high priced, but who knows.  I know he is adamantly opposed to HOAs, but after living there a bit, we will see what he thinks.

[J-rap]

We will, although our kids are all in their 20's now.  We plan to move in a year.  We'll start out in a rental until we know better what we want to do / where we want to be long-term.  It feels much better and less stressful doing it that way when so much is up in the air.  Also, if renting enables us to be in the neighborhood we want to be in, it's worth it to us, at least for awhile.

[Annie G]

LOL

 

It's Texas, the part that nobody goes to without being forced.  Definitely not a vacation spot.  But tarantulas migrate throughout the southwest so it's always good to check the area before you go.  Pro-tip: if the state park a mile away has a special time to view the migration, it's probably not the best place to buy.

 

Live and learn. :)  Our new place has its own issues - ticks, slugs, nothing major.  I did get a coyote wandering lost across my yard one day and a hedgehog eating my garden until he realized the border was all hot peppers.  He hasn't been back. :D

 

I read 'It's Texas' and my heart skipped a beat because I'm going there next month.  I don't even know where I'm going, really, because I'm flying into Austin w my sister and we're going to a quilt retreat somewhere outside Waco. I suspect your area was much farther west. And if it wasn't, please don't tell me. 

 

Last week we were driving in south Georgia and a rattlesnake was curled up in the road. Dh slowed way down and that freaked me out- once he stopped with the car on top of a rattlesnake- just for a few moments- and I was convinced the guy was going to get in the car.  I can be pretty irrational about some animals. 

[nixpix5]

We are renting this time. It makes more financial sense while ds is in college, and it lets us get to know the area before we opt for a permanent residence - something we didn't do at our last home. It would have been a good idea, though, since our previous home was right in the path of migrating tarantulas. 1. I didn't know they migrate. and 2. Definitely wasn't ready that first year! :scared:

Oh. My. Goodness. I would die. I love how breezy you say it too haha!

Edited August 31, 2017 by nixpix5

[StephanieZ]

Sounds like a good plan to me!

 

We rented for a year once when we first moved to a new area. Another time, we lived in a small residence that was located on the commercial property we had just purchased . . . intended to live there a year or less, but it was so convenient that we lived there for about 3 years until we found the right house for us to buy. Worked out just fine. 

 

RE prices might go up (bad for you) or down (good for you), but either way, unless prices skyrocketed, if you're just there a couple years, it rarely makes sense to buy anyway due to purchase/sale expenses. It's also super nice to not own when you finally do want to buy, because you'll have much more flexibility on move date and finances, and much less stress with not needing to sell before moving.

 

[Carol in Cal.]

I would try to evaluate whether real estate was appreciating rapidly in the area.

I would hate to rent for long enough to have houses get priced out of the market for me.

[DawnM]

I would try to evaluate whether real estate was appreciating rapidly in the area.

I would hate to rent for long enough to have houses get priced out of the market for me.

 

Who knows.....it could come down, it could go up, it could stagnate.  In volatile markets you just can't predict.

[G5052]

 I know he is adamantly opposed to HOAs, but after living there a bit, we will see what he thinks.

 

I've lived twice in HOA communities. The first one where I lived I got dinged because I had boxes outside of my storage area for 30 minutes. The second one wasn't as aggressive, but they kept raising the fee because of the pools, playgrounds, and such. Frankly I was fine with having to petition to change the color of a front door, but some people really hate that.

 

Personally, I'd probably be OK if it was just houses and the association was reasonable. No pools, tennis courts, or playgrounds. That seems to significantly increase the fees, and I'm at the stage of life where I don't need that.

[Carol in Cal.]

http://sanfrancisco.cbslocal.com/2017/08/30/homeless-san-jose-state-professor-struggles-living-out-of-her-car/

[Acadie]

I think it sounds like a fabulous idea given where you are in your lives and the fact that it eases transport/schooling issues for everyone. That's huge, especially since you've gone back to work. I'm finding the middle/high school years to be challenging logistically and financially as I transition back to work, and I think it's brilliant to prioritize simplifying what you can right now.

 

Amy

[Emba]

We don't rent, but recently before we bought this house we considered a similar plan (leaving an owned home, then renting while saving to buy). It was a hard idea to get used to because we hadn't had payments in awhile, but in the end, if some things had gone differently, we would have done it, so your plan makes sense to me.

[Liz CA]

Who knows.....it could come down, it could go up, it could stagnate.  In volatile markets you just can't predict.

 

If we are talking CA, then you know how things can change.

Right now, we are seeing a significant upswing in home prices.

If you have 1/2 or 3/4 of a down payment ready now, it may be time to buy unless I misunderstood and you are not ready to buy now but may be after you are renting?

 

Edited August 31, 2017 by Liz CA

[Bootsie]

We are doing that right now for a number of reasons.  We don't have young kids that we think we need to get settled in school, etc.  The property taxes in the area are extremely high.  We want to be in a particular location and have not found a house for sell that we like; I am at a point in my life that I will only buy a house if it is what I want, not settle for something just to own a house.  It has been nice being able to call the landlord when the heater wouldn't come on, when the AC went out, when a pipe was leaking, when the roof leaked, etc.  So, we are not in a rush to buy just to be buying.

[Guest]

In some markets it makes total sense, especially where the cost to own is high or you may be moving in five years. Renting can be fantastic long term as a financial choice. In other markets, like the one I am in now, renting costs more than buying after about twenty months.

[meena]

We did this, but it was in a different economic climate. It's too complicated to write it all out, but basically we lived in rental properties for a little over two years in order to save money for a down payment on a house. We wanted to be able to buy while the market and interest-rates were super-low so we would have almost instant equity. The housing market in our area has really bounced back, so I'm not sure how wise it would be to do it today. I'd consider it, though, to be in a good location. Also, homeownership can be an expensive pain in the butt and there are times I wish we didn't have that responsibility. 

[vonfirmath]

I read 'It's Texas' and my heart skipped a beat because I'm going there next month.  I don't even know where I'm going, really, because I'm flying into Austin w my sister and we're going to a quilt retreat somewhere outside Waco. I suspect your area was much farther west. And if it wasn't, please don't tell me. 

 

Last week we were driving in south Georgia and a rattlesnake was curled up in the road. Dh slowed way down and that freaked me out- once he stopped with the car on top of a rattlesnake- just for a few moments- and I was convinced the guy was going to get in the car.  I can be pretty irrational about some animals. 

 

I live in Austin and grew up in Houston and Bryan/College station and I haven't seen a tarantula yet.  Snakes are a different thing. Though even there -- they are not likely to be around where people live.

[unsinkable]

You mean this story, in Idaho, that was on the news and on TV a couple of times?

 

https://www.cbsnews.com/news/snake-house-turns-dream-to-nightmare-in-idaho/

Speechless...except for my new word:

 

Hibernaculum

[lllll]

nm

Edited September 6, 2017 by lllllll

[DawnM]

http://sanfrancisco.cbslocal.com/2017/08/30/homeless-san-jose-state-professor-struggles-living-out-of-her-car/

 

 

HUH?  I have no idea why you posted this.  The woman is $140,000 in debt for a student loan, has a husband who doesn't work, and only brings home $2,500/mo.  Her choices were very poor and she is now suffering the consequences of those choices.

 

We have a little more sense than that.....no, we have a hell of a lot more sense than that.

 

 

Edited August 31, 2017 by DawnM

[Alicia64]

We've been renting for the last four years -- it gives us total freedom. If a job become untenable we're not in long, drawn out process of selling a house. We just pack up and move.

 

Plus, if you buy and don't stay in it long term, you can end up not making a dime or even breaking even.

 

Alley

[trulycrabby]

Hmm, guess I'm the only person here who likes tarantulas. :zombie:

 

I think renting sounds very reasonable for your situation.

[DawnM]

Hmm, guess I'm the only person here who likes tarantulas. :zombie:

 

I think renting sounds very reasonable for your situation.

 

 

I like them......as in.....if they are in an aquarium and I can look at them through the glass.....at a distance.

 

But in your house?  Nope!  Nope!  Nope! 

[creekland]

Hmm, guess I'm the only person here who likes tarantulas. :zombie:

 

Nope.  We love them and enjoy seeing them when we can.  Even my house is a bit of a haven for local spiders.  I evict them once in a while - esp if company is coming - but not often.  

[Um_2_4]

We did for quite a while. Constantly thinking we might move. Never did and we regretted waiting sooooo long. Though we did end up waiting for the last down turn.

 

You know this market is HOT. Unless there is another RE bust, prices here just keep creeping up, sometimes slowly, sometimes quickly.

 

Our house is now worth about 166% of the price we paid for it 5 years ago(and we are in the cheaper area of SoCal) . Friends houses have more than doubled in value in some areas.

We looked at buying an investment condo about the time we bought this house (1000sq ft/2bd in nice area of OC). They were in the $100K to $125K range. Now? $250K-300K. I wish we had.They easily rent for $1600+ per month.

 

As long as you take that into account in your planning. Like don't get a $ figure stuck in your head. Add like a 10% increase per year you wait and keep an eye on the market. So if you are looking at $500K condos now, think maybe $800K in 5 years (baring a RE bust like last time).

[DawnM]

Thanks everyone.

Edited August 31, 2017 by DawnM