Hmmm so I will be moving to a location for grad school. I looked at apartments, but to be honest most of them seem like crap. I did not realize how cheap the houses were around Pittsburgh and am thinking of buying the house. There are several things to consider though:

1.) I do not work, and I live with my parents. They already have a mortgage for a home. I am sure they will cosign for me, but does this affect my ability to buy a house?

2.) Is it smarter to buy than to rent? I mean, if I rent all the money will be sunken. If I buy, I at least have the opportunity to rent it out if I decide to move out. I mean, there houses are about 150k and three bedrooms, so I am sure I can rent out space if income is needed.

Anything else that is relevant?

 

If you don't work, I assume you have no income. There's no way I'd ever consider buying if I didn't have an income. But that's just me

 

Buying is smarter than renting for sure because you have collateral, get a tax break for first time homeowners etc. There are some downsides though. If you buy aa house and are not staying in the area after school, you would have some headaches if you can't sell right away. You can always buy out of a lease (or at least you'll know when it's up). Also, if your parents cosign, and something happens where you can't make the payment (or whoever can't make the payment), then they're saddled with the crdit hit, not just you.

Just a few things to think about... Good luck!

 

Buying will always be the preferred method as long as....

a) you find a good property and not one with hidden problems (bad foundation, roof going)

b) values continue to climb.


If values go down, then you owe more on the house than you can get for it but if housing is as cheap as you say in Pitt that might not be a concern.

 

My parents are willing to pay for the house, which I assume is approximately 6-700 bucks a month. I also get loans and grants I can use for food, and rainy day situations.

As long as the place appreciates, even a little, isnt it better if I buy?

 

Pittsburgh isn't exactly a place on the upsweep. They are mired in quite a recession and haven't been the same ever since the steel industry left town. If you're not planning on staying in the place after graduation, I don't think I'd want to be saddled with property there.

 

Also if your parents buy it then it is an investment property which has higher interest rates and downpayments.

I'd say rent unless your parents just want some investment property near a school after you're gone.

And that is coming from a licensed real estate broker since 1974 & owner of a mortgage company since 1984

 

Don't forget about all the expenses that go along with owning a home. This includes maintaince, repairs, etc. They add up MUCH quicker than you think.

 

Oh yeah, don't forget about property taxes too. Yuck.

 

Ok I guessed I jumped the gun lol

This thread can be closed. Thank you for all your help.

I do not plan on staying for Pitt for more than a year or two after graduating, if at all.