mister_two

The six month lease is good advice if you can swing it. It will give you time to look for a place.

I just want to add, can you afford a comfortable down payment (20% or more) ? Do you have excelletnt credit so you can take advantage of the best mortgage rates? Do you plan on being at the new house/condo at least for the next few years? If the answer is yes to all then I wouldn't wait too long to buy.

wifeb123

Yeah, no matter what's going on in the market, having 20% down and good credit is really the way to go. I mean you can grab a real good deal on a house and get charged 6.25% interest plus PMI and it ends up being a really bad investment.

Jsmply

Yes I have perfect credit. Never had a late payment, paid off my s2000 car loan in full about a year early, etc. My wife is pretty similar. She had one late payment once I believe, but besides that her credit is great too.

I have the 20% to put down on most of the things we are looking at, but in all honesty I don't know if I want to right now. I'm still growing my business (been going about 4 years now and I am in the black, but I like having the liquid capital when opportunities arise) and I kind of like having the capital for that if needed. It's a tough call . . . the way I justify renting for another year is the money is better served helping me grow my business now so it can make a lot more house investments in the future. On the other hand, I might not need it and the house could be appreciating.

Who knows . . .

aeonracer

The government is paying you $8000 to buy a house, with current prices and interest rates, you'd be stupid to not buy SOMETHING, even if it isn't your ideal house.

Just prequalify yourself, and go house hunting. You're bound to find one you love, and in the meantime just go month to month in an 'ok' apartment to get you by until you can find a house you like.

Jsmply

Thanks for all the replies guys. I debated going month to month but they want a $ 175 premium per month for that option in our current building. The building is a luxury apartment that until recently always had a waiting list so they really want a 1 year lease or nothing at all. I've got till Friday to decide. I guess we will keep looking.

midnightsunset

You'll forget all about that 8k when you have to pay 10k to fix your roof or A/C not to mention the 5k+ property tax EVERY Year.

We still have another 2yrs+. Don't be in a rush as there many hidden costs in homeownership that too many people escaped from by refinancing.

There is a reason why there are so many "deals" out there and not realizing what it costs to own a home is one of them.

5k x 2yrs =10k + invest the 20% in a CD = much more appreciation/liquid assets than buying with your + you already love your apt so........

Jsmply

Thanks so much! I think we are leaning towards waiting it out another year. In all honesty, we love our apartment and the only thing I don't like about it is that I can't buy the place in this building. It's plenty of space, a gorgeous view, a killer gym, top notch 24/7 service, etc. Most people are here for 5-10 years. The only reason I thought about leaving was because we didn't want to miss this "awesome buyers opportunity" that everyone keeps telling me exists right now. I've got friends giving me a hard time that they pay less for a mortgage than I do on rent. It's hard to explain that your not comparing apples to apples though. I'd miss half the amenities I get here if I was in most of their places. Like I said, I just don't want to lose the "opportunity."

Right now the 20% is in a money market account that used to yield a good amount of interest but now is giving nothing. I guess if we sign a year lease I might try to lock it into a CD or something for a year.

midnightsunset

LOL!!!

Next time ask your friends to tell you how long their term is, how much their annual property tax is, and keep a log of how many maintenance issues came up and I bet you that not only will exceed what you pay annually, but to know if the going gets tough, you have 20k+ to fall back on and they most likely will have a low or negative net worth hoping that this "investment" will one day have a real gain.

The economy is much worse than people realize. Don't be in a hurry as there won't be any sunshine for at least 2 more years and benig self employed if your business is up now, just imagine how much more comfortable you will be buying in a advancing economy.

15yr mtg or bust Good Luck

midnightsunset

Better still.... negotiate a 24 mo lease for an even lower payments then tell your friends to take one in the pooper

Jsmply

Lol thanks! It's funny all they ever ask me lately is "aren't you tired of giving your rent money away every month that you won't get back?" In all honesty, you make good points though!