Renting is throwing your money away for 8 years. You really ought to buy.

Anonymous wrote:I’m assuming you were still paying a mortgage before you sold?

Did you make any money on the sale?

If I were in your shoes, I’d rent. I’d invest the money I made on the house, and then just pay what I’d be paying on my mortgage, on rent instead.

I am tired of home repairs and yard work and would love the idea of eight years of not having to worry about that. Sometimes I miss the freedom of renting.

Yes, I was paying a mortgage.

I had a lot of unforseen repairs. I made some money but not as much as I thought I might.

I also don't want to deal with the risk of home repairs or paying for yard maintanence. I am a single woman (divorced with two kids) and have zero time for yard work. The cost of maintaining my yard and landscaping was ridiculous.

Because I would likely move in 8 years, I am thinking of investing all of the house proceeds into the market for future property later when I am ready to make a permanent decision...likely when I retired in 15-17 years.

I don't think buying makes sense unless someone is maintaining a family home for kids to come back to. My kids have lived in 3 states. I have lived in 6. There is no "family home" since kindergarten or birth...I just am starting to think that the 30-year mortgage model is outdated. It made sense when people bought between ages 25-30 and stayed in it until they retired because it was a forced savings account for 30 years. If you know how to invest, you can make more in the market than trapped in a house making a bank rich. I have owned several properties and it always felt like a trap. Conventional guidance of "you have to be a home owner" is so entrenced in our society now that it is hard to not buy...but I really think renting in my case is a better option.

I’m assuming you were still paying a mortgage before you sold?

Did you make any money on the sale?

If I were in your shoes, I’d rent. I’d invest the money I made on the house, and then just pay what I’d be paying on my mortgage, on rent instead.

I am tired of home repairs and yard work and would love the idea of eight years of not having to worry about that. Sometimes I miss the freedom of renting.

Anonymous wrote:I would buy OP. What are you afraid of about buying, esp. since you live in the month for the next 8 years?

OP here. I have owned 4 properties. The last house had a ton of unforeseen repairs. I sold because kids switched schools and house was too far.

Buying feels like a huge risk. You don’t know how much you will actually spend until you live there. I have basically broken even on properties. I feel like it is not a good idea to buy unless it is 10 or more years.

I also like the flexibility…if I don’t like the place, easy to move with renting.

I think I would prefer down payment cash in the market vs. a property.

It is not the conventional approach to rent but I see mostly downsides to owning. Thinking the next place I buy should be in 15-20 years when I retire and I think I will be there forever.

Anonymous wrote:8 years at current interest rates means you have very little equity built up. Who knows about appreciation but historically appreciation is around the rate of inflation. But once you subtract taxes, maintenance and repairs, housing is not a great investment compared to the stock market.

OP here: this is what I think.

You can always try renting for a year or two and if you don't like it, you can buy. It doesn't have to be an either or decision right now at this current moment.

8 years at current interest rates means you have very little equity built up. Who knows about appreciation but historically appreciation is around the rate of inflation. But once you subtract taxes, maintenance and repairs, housing is not a great investment compared to the stock market.

The average person only lives 7-10 years in a home.

8 is a long time. Maybe look for a smaller home and some credit unions have really OOS rates in 5/5 adjustable mortgages. Low risk as only adjust every 5 years and you might leave in year 8 anyhow.

I would start out renting, and then re-evaluate. It sounds like you really want to rent but are afraid to try because you've owned for a while. The downside of renting for 1 year is much lower than buying and hating it.

What is housing stock like in the area you have to live? This may make your choice for you.

We have a similar situation -- we are moving and have to live in a specific area for schools, but in 7-8 years will be free to live wherever we want. It has been our dream for a long time to spend early retirement living abroad, so we will probably do that. We definitely considered renting.

But it makes no sense. The area we are moving too has really limited rental stock. Most of it is apartments, and we want at least a townhome. Renting a SFH is more expensive than buying in this area, even with rates being what they are. Housing is appreciating steadily as well. All of these circumstances are driven by the strong schools, I suspect it's similar in other districts with strong schools.

So we're buying. I feel our choice was made for us to some degree. Renting just doesn't make sense in this particular location.

Rent. 8 years is not too long. I cannot stress the positives of renting enough.
We owned 3 properties. All were bought for living, not for making money. All three had problems. Had we rented the same or similar homes instead, we would be much better off now financially and mentally. We had a neighbor crazy neighbor and were stuck living next to them.
I have no use for mortgage deduction or any other that comes with owning. I do get something back in DC from my rent payments. Few people know that or mention it.
I took the money from the properties and learned to invest. My returns are insane. Had I not sold the homes, I would not have had the money to invest and learn all about it.
I'm renting now, and yes, landlord did raise rent, but I'm a light mover as a renter. I moved and pay the same rent now. We may need a bigger place in few years, so I'm already looking around. I enjoy it.
Landlord sent me card that she was sad to seem me go, and that she would have worked on the price.
I was a good renter and lots of money in the bank. No problem finding a home.
I did the math on countless properties. None of them were a good deal when it came to buying vs renting.
If I keep renting and investing the down payment and extra (there would be about $500 a months extra just to buy the same place), in 30 years, I could buy the one I rent, the one next door, and have money left over.
Market is simply so much faster. I also got better and better at investing every year or rather, every week.
There is nothing home ownership taught me that gives me the same returns. No, not even how to fix everything myself.
Op, it is very personal. People think the tax deduction is awesome. I don't need it. I don't really pay taxes. I do, but I get back a lot more than I pay in. Do you?
Investing came about exactly because I sold one property, got into markets, and got very good at it. Even at 10% a year return on the money you'd invest, you'd be ahead in year 8.

I would buy OP. What are you afraid of about buying, esp. since you live in the month for the next 8 years?

Anonymous wrote:I am 100% in favor of renting during a transition, but 8 years is too long. Buy

I get that, I suppose, but honestly, I have never lived in one place longer than 6 years in my entire life. And I am 47.

I am 100% in favor of renting during a transition, but 8 years is too long. Buy

I sold a home in May. I am in a temporary situation.

I am on the fence about renting a house or buying because in 8 years, I will have more control over where I live as both of my kids will be in college.

I also have moved a lot in my life and owning gives me anxiety because I feel trapped. On the other hand, I have not rented in a long time and the idea of a landlord deciding I have to move and not renew a lease also gives me pause.

I have to live in a specific location now due to being close enough to school and work for the next 8 years, but I could move further out into the suburbs or another area entirely after 8 years is up.

What would you do?