Renting vs Buying in this current market
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Anonymous
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We recently sold earlier this month and are renting until we find another house. Sold because we wanted to capitalize in on this market, but it now leaves us in a bind, well not really. Our old rate was 3% and we recently got quoted 5.7% yikes.
Anyhow our old mortgage was 3k so we are renting at that same amount. Question for those who intend to continue renting, will you rent forever or do you plan to still buy. I'm thinking renting maybe the cheaper option for us considering transaction cost, maintenance and everything else that comes with a home. |
Anonymous
| Where are you living and how long do you hope to live in that area? |
Anonymous
| I plan to stay in the DC area. We sold our home in Bowie and now rent in DC. |
Anonymous
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Renting is a great option for many people. Not everyone wants to be a homeowner. And renting in DC offers a number of protections that don’t exist in MD and VA, including caps on rent increases.
I rented for 18 mos after selling in 2018. I loved that period of not being a homeowner. Ultimately buying again was the right decision as I’m in VA and rent increases are not capped. The place I rented is now $500 more than I was paying when I left in 2018. My mortgage is less than my rent. |
Anonymous
| I am renting in my mid-40's and am considering not going back to being a home owner. Of course there are pros and cons, but I am also single and not having to do any repairs, upkeep, yard work on a home has been fantastic both from a financial and a quality of life standpoint. I also live in a large apartment complex (west coast) that has resident pools, tennis courts, volleyball courts, dog run, etc that are so convenient. |
Anonymous
Thanks. Different poster. What are dc rent caps? TIA |
Anonymous
| I think usually you are still financially better off to buy if your mortgage payment and rent would be similar, even with transaction costs and maintenance and stuff. But, finances are not the only consideration. Do you want to avoid all the hassles of home ownership and be able to move around more easily? |
Anonymous
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like others have said, a lot depends on situation. I do think if your plan is to buy in DC or close -in you probably should do as soon as possible. I havent seen a drop in prices in these areas or at least enough of a drop that people consider them "affordable".
if you plan to stay in this area for a short amount of time, then i'd say rent |
Anonymous
| Buying is a better financial deal for majority of the cases but renting is better if you don't gave a financial cushion to absorb costs of homeownership or ability to hold on to a house ling enough to build equity. |
Anonymous
| Rent for few years then buy. |
Anonymous
This might not be true in the next few years as rates rise, prices fall and we go into a recession. It seems to me that the people who bid up houses by hundreds of thousands this spring will be underwater for a long time. |
Anonymous
| Underwater issue is only a problem if you need to sell. If you bought to live or rent out, you'll be fine if you can hold on for 5+ years and get to sell in another hot market. If you cant hold on and need to sell in a cold market, you are in trouble. |
Anonymous
| Buy something modest and small. At least you'll build equity. Its like a forced saving. |
Anonymous
| You made a huge mistake selling your house and trying to time the market. Nothing to do about it now, but just accept the fact that if rates stay high and prices don't fall that you might have just jumped off the real estate ladder and might have to continue renting for the next few years or so. |