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We need a larger home. We might sell ours & get something else. We don’t have a lot of a downpayment & financing might now work out. Is it dumb to go back to renting??

9 Thoughts on Is it better to rent or buy right now?
  1. Reply
    Ryan M
    June 11, 2013 at 2:40 am

    As long as you plan on staying in the new house for AT LEAST 10 years, you should be OK to buy the larger home. That said, 20% is pretty much a standard down payment for a new home these days

  2. Reply
    Levon
    June 11, 2013 at 2:48 am

    It would be wise to buy if you have a large sum set up for down-payment. Since you don’t, however, you will be losing money on your current home due to the real estate collapse depending on where you live. I would suggest keeping your current home and renting it out so you can keep paying the mortage and maybe make some more. Renting may be a good idea if you can get a great deal that will allow you to save a lot of money for a year or two. A good rule of thumb is that you should buy if the price of the home is 15 times the amount of rent you would pay in a similar are, or less. If, the price is 20 times a year’s rent then it probably isn’t a good idea. It also depends on how long you want to stay in the new home. Plan to stay their for at least 5 years, maybe even 10 years, to allow the value of it to grow. You must also consider your age, your family, and future plans (education, retirement, etc.). Invest a couple of hundred dollars in talking with a good financial advisor-it will pay dividends.

  3. Reply
    AE Neuman
    June 11, 2013 at 3:39 am

    I wouldn’t sell in this environment, but I might rent out the old place, and rent a larger home until I can scrape together 20% down.

    There are a lot of families who have lost their purchase homes, and have enough income to rent your home.

    Sacrifice like crazy to save that down payment this year. I have a feeling 2009 and early 2010 will see the bottom of the real estate prices. If you can buy at the bottom, then you’ll have two homes to shoot up in equity once everyone is working again.

  4. Reply
    Shortie
    June 11, 2013 at 3:57 am

    I think it’s better to buy. It’s a buyers market, so you can get a better deal and sell it for more when the market turns around.

    for an FHA loan you only need 3.5% down

  5. Reply
    lordydordy42
    June 11, 2013 at 4:28 am

    Right now, it is a buyers market!! Selling your home is the difficult task as you will more than likely take a loss, but you will make up for it whenyou make a purchase.

  6. Reply
    Ashley T
    June 11, 2013 at 4:39 am

    You can get help in here http://www.mortgagewallet.com.
    Good Luck 🙂

  7. Reply
    Thor
    June 11, 2013 at 5:01 am

    I have run the numbers and renting is a very viable alternative to owning. Once you add up interest, maintenance, insurance, property taxes, fees, and so on, then adjust for inflation there is not much profit in houses.

    My father owned a number of rentals so the actual number as opposed to investing in stocks was important to me.

    BUT, the biggest benefit in the US is that you can deduct your mortgage interest on your taxes That makes the difference. But it is a greater benefit the higher your tax bracket.

    And a lot of the money “made” on a home is really a result of you doing your own “work” to repair and maintain. But that is a matter of making money on your work, not the investment in the home.

    But I can say that renting is not all “throwing your money away” because most of it goes to ongoing costs you would pay, lose, owning your own home. And you are not the one with all the hassles and at risk, like if a hurricane, storm, or flood destroys the home.

    I think it is not dumb at all.

    Good Luck

  8. Reply
    Kooky Monster
    June 11, 2013 at 5:10 am

    I don’t think its dumb to rent — we’ve been renting for several years now after we sold our home. Owning a home is seriously over rated — renting doesn’t make you a second class citizen. You do what your heart tells you to do because in the end a family makes a home.

  9. Reply
    joeyyye
    June 11, 2013 at 6:05 am

    Well, if you can afford it, and have a stable job, definetly buy !!

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