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[quote=Anonymous]We are really struggling with these two options:

1) Buy a house for approx 550k in MoCo
-45min-1hr commute for DH 
-need to buy a second car
-would nearly clear out our savings
-good schools, but not amazing 
-building equity (but then again, it could disappear too...)
-sense of permanence (this is a big one for DH)

we are estimating mortgage/tax/insurance + utilities + upkeep expenses at $4500/mo 
plus $300/mo second car and $200/mo metro or parking + more on gas as we'd both be driving each day, not sure how to estimate that

So ~5k/mo 
Does that seem a reasonable estimate?

2) Rent a house from a friend in NW
-10-20min commute for DH 
-don't need a second car
-keep more cash reserves
-excellent schools
-if something breaks, we don't have to fix it!
-keep saving

Cons:
not investing in real estate, friend could want house back in a year or two and we'd have to move again (I think this is unlikely), fear that interest rates and prices will rise and this is our only chance to buy.

Rent: $3,500, guesstimating utilities at $300, parking $200

So 4k

Variables:
We own and rent out a condo downtown so we do have an investment in the DC real estate market
There is minimal tax benefit to owning vs renting in our situation.

What else should we take into account? Other hidden costs of owning? Thanks.[/quote]

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