Thread: Should we buy or rent?

Originally Posted by Scotty

Hello!

First, thanks for taking the time to read this thread!

My girlfriend and I will be starting our new jobs very soon in the VA/metro area. We are just getting out of college and have little to no savings, but we also have virtually no debt. We will be making a combined salary of approximately $140,000.
Would it be smart to simply get into the housing market as quick as possible? Or should we just sit back and rent for a little while?

Thanks!

Man, that is such a tossup. I am in the same situation. I would say when starting out, it can be a little scary. I would personally sign a six month lease, save 6-12 months of income and then buy a house within your means.

for now i guess that you only need to rent it is more wiser because there is only two of you and you can rent a place that is near your work...then if you wish to plan for your future then you could buy a house...tip...dont ever rush in buying a house..plan first the location and what type house you wish to stay in and dont forget about the budget...

My 2 cents:
Buy a duplex. Live in 1 side, rent out the other. Then start saving. Buy a new place, move out of the duplex, but keep it as rental income.

yea thats a good idea

You should rent for six months and learn the area. You need to figure out what parts of town fit your lifestyles. Once you have had a chance to do this you need to look around and contact a few agents in your area and get a feel on who fits your personalities best. Once you have decided who you like have them put together a buyers contract so that they are representing you and not the seller. In this contract you need to make sure that you have a way to get out of the contract if you feel the agent is not working in your best interest.

Have a clause that says that if you complain in writing listing what things you find your agent doing that is not in your best interest they have 7 days to change their actions. Have it say that if at the end of the 7 days you are not satisfied with their attempt at correcting your concerns that you can make the contract null and void.

Good luck I hope you enjoy home ownership as much as I have. PM me if you have any further questions.

Absolutely! Buy!! There has never been a better time, in my opinion. Grab a foreclosure or a home from a motivated seller willing to sell below market and start with instant equity.

Now is such an awesome time to buy. Interest rates are affordable, prices are low, and rents are rising. When in doubt, I would encourage you to buy and start getting the benefits of home ownership.

Since you said "Virginia/Metro" area, I am guessing that you mean the DC metro area. If not, then this may not apply.

Northern VA is a good place to buy right now. The prices are dropping like crazy. You can get good deals in pre-foreclosure or in foreclosure. Having $140k in annual income under one roof makes it easy to live up there.

A word of caution -- prices in Northern VA (especially condos...) are more volatile than in Washington D.C.

Getting a loan is a different story. Get some advice from a good mortgage lender.

Good luck.

Real estate can be one of the most lucrative investments you'll ever make. I waited until my 30s to buy my first home and now consider all those years of renting to be money down the drain.

I was fortunate to buy in the DC Metro area during the boom years. I bought and sold three properties in Washington and NOVA from 1995 to 2004. I made a bundle. I'm now in North Texas so can't advise you about details of your market. But I would suggest that you find yourself a good Realtor who can show you the trends in the neighborhoods you're interested in. No one can guarantee when the market will bottom out. But I'd say this is probably a good time to buy for those who can afford to do so.

One thing you need to consider is putting as much of that $140K/yr salary in your savings account as quickly as possible. With the tightening lending requirements the days of getting into a new home without ever opening your checkbook are, for the most part, behind us. Save your money, do your research, and go for it!

Good luck!