Renting Vs. Buying

iVillage Member
Registered: 01-02-2008
Renting Vs. Buying
3
Sun, 09-30-2012 - 11:34am

Hi everyone;

Where I live right now I am seeing co ops and condos coming way down in price.. Yes; some have high fees and some look okay.. I am seeing co ops at prices of 65,000 or lower  with lots included and low fees.. Landlords are charging 900 and above around here for one bedrooms ...or studios..well? actually a decent apt. is like l,200 with not much included..

I dont have a job but some income and investments and thinking?? Is it cheaper to rent or buy a co op right now?? I could get a co signer or someone to help me get a mortgage.

Is it risky to buy something now and  try to find  a job or wait again for the job and then see if the real estate market stays low.. I am at my wits end and cant live another minute where I am and keep thinking this might be the way to go. Only thing the job market is also bad and there would be no guarantess and of course then I am stuck with this..

Any suggestions?? Insight? Advice?

iVillage Member
Registered: 10-17-2010
Mon, 10-01-2012 - 4:43am

I would run the numbers on buying a house.  If someone will give you the loan, and you can afford the payment (plus whatever expenses come with a house) on what you make monthly you might as well.

If the numbers work (or are better than your current situation) and you are really miserable, then you should change it if you can.  Good luck.

iVillage Member
Registered: 04-08-2008
Sat, 10-13-2012 - 11:10pm

I know this is an old thread - but be VERY careful here. Being unemployed, the flexibility of being able to move for a job is a great situation. (even if it's just moving to another side of your town to avoid a costly/timely commute!)

We purchased 3 yrs ago bc we did the math and it *looked* cheaper to buy. Our mortgage, taxes and strata fees are $1450 and to rent would be $1500-1600. BUT...if we invested our downpayment and received 5% return, we would have the equivalent of $600/month. Plus, we just got a $28K assessment for improvements...so that is another $700/mo added to our costs...

What if you can't find a job, will be able to cover the mortgage and property taxes? If not, you could lose the home. But if you keep your investments, you will not lose those! Even if prices go up, the property taxes could go up - sometimes as much as 20% in one year (especially if your value increased and there are other increases). And if prices do NOT go up, is that going to be a problem? If so, then don't gamble.

Good luck whatever you decide,

Dee

iVillage Member
Registered: 01-02-2008
Sun, 10-14-2012 - 12:30pm

thank you both for the input..

You are right in that I am pretty mobile and flexible and with no job now I can go anywhere and even move anywhere.. I get into a panic when i see things come down so much and think wow I would love to live there with the pool and all of that but then I come back down to reality and realize it would be a huge burden on me to buy something and yes not have that option of going somewhere in future..where the quality of live could be better..

I can just about go anywhere right now which is great ..............

thank you..