I’m still a bit in shock over getting kicked out, with countless thoughts zipping around in my head. Here’s my attempt to put them on virtual paper.
Buying. Just not going to work. With 20/20 hindsight, yes, we should have bought a place when we moved here initially a bit over a year ago. House values have have increased 30-50% and we wouldn’t be faced with being kicked out. But now, we have less than 2 years left in this city, not enough time to even make the 2 years needed to make any capital gains tax-free. Also, with only one income now getting a loan would be very difficult. I’d probably have to go back to work again, at least long enough to get the loan.
Renting. I’ve been looking through Craigslist again, we’re pretty picky about the things we want now, I guess we’re getting spoiled. No apartment complexes, no duplexes, only single family homes. Surprisingly the rents are still pretty affordable. The ratio of how much the monthly mortgage payment on a house would be to the rent on it is about 2 to 1, ignoring income tax benefits and property tax.
We are using our increasing familiarity with the city to try and find nice areas that may be a bit more affordable. We do live in a slight more expensive part of the city right now, close by many small shops and restaurants. But we don’t go out as much anymore, so living farther away might work out.
Moving. Gotta find the movers we used last time, they were acceptable. So here we are, moving for the third time in less than 15 months, and we are going to move again in two years. I hate packing. I hate unpacking. I’m gonna buy a house and live in it for 30 years when we move next.
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Maybe a dumb question but what about buying a place to live in (maybe close to a university), live in it until you move on and then plan on renting it out to grad students? That way time frame isn’t an issue. I have struggled with this somewhat – i am rotating assignments at work and am at risk to relocate potentially every 6 mos or so. Its made things extremely difficult to try and settle down, but I am thinking I will ignore the whole timing issue for now – I won’t get anywhere if I wait for everything to line up perfectly. Good luck!
Since you’re sure you’ll leave the city in 2 years, why bother to buy a home? Just go rent a cheap apartment and don’t be picky.
Do you follow Ben Jones’ blog, The Housing Bubble? If not, check it out, it will likely make you a bit more comfortable renting for now.
Good luck!
Savvy Saver
I don’t plan on getting any rental property unless it’s cash-flow positive from the start – Like I mentioned, where I want to live the rent only covers half the mortgage.
Anon – Yeah, I’m not buying.
Savvy – I don’t know about a bubble, but I’m happy not buying right now. Just a little remorseful in hindsight =)
Jonathan, hopefully you can find a place soon.
Good Luck!
Jonathan, when are you planning on going back to work? Don’t you think that’s a necessary requirement to buying your own house and reaching your financial goals?
Of course, but I’m in school for now, and financial goals aren’t everything. Long term, everything will be fine. Or not. Either way, you’ll know 😉
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