SO and I live in an apartment with rent $3800. If we buy a home, mortgage might be $1000 lower. Is it worth buying a home for a year or two as we don’t plan on being here long term? Or are we better off renting? I’m thinking on the lines of if renting for 2 years is almost $100k, why don’t we just buy a house instead? Are there any disadvantages for buying a house for a short term?

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Disadvantages include additional costs of home ownership you will need to factor in — taxes, maintenance, inevitable mechanical breakdowns big and small, closing costs, realtor fees, HOA, cost of amenities currently included in rent. If you’re not planning on staying 5 years it’s a waste and a gamble. If the market tanks, you may be stuck, under water and unable to sell. (If you’re looking at it as investment property longer term, then maybe shorter term isn’t as bad). Also prices are all over the place right now, likely you’d be over paying. No one likes paying rent, and you’re paying a lot, but to buy comparable home, factoring in those costs, don’t see any way you’d be saving 100k. You may be doing what many have done starting out, which is comparing monthly rent to monthly mortgage and not looking at full costs. Not an expert just sharing my experience.

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You know you can rent the house after your done living in it right? Especially if rent is that much more than mortgage where you are!

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When you rent it out, your rent should be market level, which means it would be higher than your mortgage monthly payment on the house. You should ideally would have leftover cash if you made a wise purchase.

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If you're paying a $2800 mortgage, you're probably buying a house worth ~$600k?

That means you should set aside at *least* $6k a year / $500 a month for maintenance. Double that would be a more conservative estimate.

That makes up the difference already.

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Closing costs and the cost of selling may easily eat up that $1k/month. Appreciation would offset it, but you can't count on it.

Because I don’t know where you live, is $3,800 the average cost of a rental or are you on the higher end in a community with a pool, gym, valet garbage disposal, and movie theater? Can you find something cheaper while still comfortable and safe?

Personally, I think it may be best to try and increase your HHI and rent the next two years while saving for a house in an area you’re going to live in.

I live in Boston in a higher end community with everything.

helpful

Selling the house will cost 10%. If you only live there for a couple years that’s a big expense.

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