plarq
Crazy forever
Since I came here, I would like to stay in the university for about 5-6 years, is it recommended to buy, rather than to rent a house? Since rent is paid and out of the pocket, but mortgage paid into home equity.
Is it a right time to buy some real estate in US?
- Thread starter plarq
- Start date
Generally I would say no. But your location and situation may make that something to look into more deeply. If you're going to be here 5-6 years, and then are leaving the country, I would not be inclined to buy. Many areas of the country house prices might still fall another 10 or 20 percent before leveling off and starting to rise again. But that doesn't apply to every location. And if your location has already bottomed out or shows no signs of going down further, then you might want to look closer. But you need to research your local market first. To get a good mortgage rate now you'll probably need a significant down payment. To sell after 6 years you have to expect a sale price higher than your purchase price. And I don't think you can count on that. Or, to even lose less than you would otherwise spend on rent, I don't think you can count on that either. When you buy you have to consider not just the down payment and mortgage, but insurance, taxes, any repairs that need to be made, and maintenance costs. Only if house prices are very low in your area and rents are high would I really look into that.
plarq
Crazy forever
Yep, this is IUPUI, Indy.
Disgustipated
Deity
5 or 6 years I would say no. Housing prices won't come back for at least 10 or 15 years. Although I don't know about conditions in Indy. I wouldn't touch anything in my city for at least 10 years.
I really do not predict good things for the United States future. There just isn't enough oil. Oil is predicted to go up 60 cents this summer which will squash any recovery we have. I predict we will have a seesaw effect for many years to come. Once the economy heats up, demand for oil will go up, which will drive up prices, which will increase costs of doing business, which will depress the economy.
So buying a house predicting the good days to come back is not realistic imho. The value of your house may go up slightly in 6 years, but you still may have a difficult time to sell it. Keep in mind the banks still have millions of homes they have not foreclosed on yet. It will be years before all those houses have been dealt with. Only way I'd buy a house right now is if I plan on living in it 10+ years.
I really do not predict good things for the United States future. There just isn't enough oil. Oil is predicted to go up 60 cents this summer which will squash any recovery we have. I predict we will have a seesaw effect for many years to come. Once the economy heats up, demand for oil will go up, which will drive up prices, which will increase costs of doing business, which will depress the economy.
So buying a house predicting the good days to come back is not realistic imho. The value of your house may go up slightly in 6 years, but you still may have a difficult time to sell it. Keep in mind the banks still have millions of homes they have not foreclosed on yet. It will be years before all those houses have been dealt with. Only way I'd buy a house right now is if I plan on living in it 10+ years.
rugbyLEAGUEfan
Deity
We actually have a commercial on TV here " Do you have $200,000 ? Then you can buy not 1 , not 2 but 4 properties in the USA !" .......who'd have thought?
Narz
keeping it real
Housing is still very much overpriced. I would only suggest it if you want to settle down for a lifetime.
Bestbank Tiger
Deity
For your situation, probably not, with one caveat: If you're in a market with low sale prices and high rental prices, you could buy the place, then rent it out after you graduate, and sell when the market recovers to the point where you come out ahead.
warpus
In pork I trust
If you have good enough credit to get a mortgage, you could buy a house and then rent it out after you're done school and use it as a money maker.
I'm not sure about the real estate market there, but that might be a viable option... unless home prices in your area are still dropping.
Beware though.. students will f up your house good.
I'm not sure about the real estate market there, but that might be a viable option... unless home prices in your area are still dropping.
Beware though.. students will f up your house good.
classical_hero
In whom I trust
Housing in America is Overpriced? I wonder how you would feel living in Australia.
Narz
keeping it real
Average price of a new home in the US in 2010 according to the census is $272,900. That's too high.
Looks look Oz is even higher though.
http://www.bobinoz.com/blog/4135/the-cost-of-living-in-australia-house-prices-revised/
I just think it's ridiculous. With so many homes vacant & so many people living in ridiculously large houses that I would ever even think to buy "my own" home. Co-own a home & land, sure. But investing my money solo, even for a good deal. Way too scary. It's still an investment, there's maintenance, taxes, plus dealing with renters if you go that route. I used to live with a guy in FL who didn't work, rented out his whole house to five or six people (had a couple of trailers in his yard and a few people living inside, he made his garage into a master bedroom of sorts) but he was pretty stressed out even though he seemed to enjoy his "job".
Aren't you a physics grad student?
You should be able to calculate the value of renting vs buying pretty easily.
http://realestate.yahoo.com/calculators/rent_vs_own.html
You should be able to calculate the value of renting vs buying pretty easily.
http://realestate.yahoo.com/calculators/rent_vs_own.html
Dreadnought
Deity
Like the others, I'd say that, assuming you're here for only that 5-6 years, it's best not to make the purchase; but if you find a good deal in your area, I'd say you should give that serious consideration.
Bamspeedy
CheeseBob
What are your plans for after university?
If you are probably moving back to China after you graduate then it would be a much more risky situation, no? Trying to manage the rental or sell it while you are in China complicates matters and then you may have to consider selling it for a rock bottom price (if the market isn't very good at that time) just to get rid of it.
If you are probably moving back to China after you graduate then it would be a much more risky situation, no? Trying to manage the rental or sell it while you are in China complicates matters and then you may have to consider selling it for a rock bottom price (if the market isn't very good at that time) just to get rid of it.
rugbyLEAGUEfan
Deity
This is an excellent rule of thumb , however I would never let logistics get in the way of a fantastic purchase . But unless the property is literally screaming to be purchased and you are prepared to pay to have it managed , then I second this .
