Should I buy a house if I plan on moving in two years?

Pics?

If you'll move in two years, you'll likely be losing more than renting. Closing costs when buying + realtor fees when selling will likely be more than 2 years of rent

When I was in the military I bought houses knowing I would be moving in 3-4 years, and always did OK. Your total mortgage payment (principal, interest, taxes, insurance) needs to be way less than you would be paying in rent to make it worthwhile, especially if you're living there just two years.

Unless your mortgage is less than your rent you’ll lose money on it. You don’t seem to have a large enough down payment where that will be the case. Your closing costs will eat up a good chunk of that $7k. If you had 20% to put down then it might be an ok idea to buy.

It’s a bit risky, but it does depend a lot on the market in the area. Do you think the house will appreciate enough in the two years you own it to offset your mortgage interest, property taxes, home improvement costs, and cost of using realtor(s)?

If you sell your home using realtors, they will suck 6% right off the top. That’s about $9600 in your case, which could easily offset any gains you may see in the next two years. This is why we sold our home by owner.

Another thing you might consider is whether or not you are willing to keep the house as a rental property after you move. You might be able to get enough in rent to pay your mortgage and property manager and you can sell later. Never did it but plenty of people in the military do.

This guy doesn’t even understand the pros and cons. How is he going to know if the housing market is going up? If anyone knew that, an investor would buy up all of available properties.

The decision is base in rent vs mortgage and taxes. If rent is $400 more per month, it is a break even. If rent is only $300 more per month, don’t buy with a 2 year window.

Are you wealthy enough to buy a place where you currently are and where you are going? If so, you could rent out your first house once you leave.

Ask around. See if you can find some professional house flippers or landlords who own properties in that neighborhood. Ask them what they think.

Are you buying it outright or are you taking a mortgage? Mortgage means "death pledge". A house is not an investment. When was the last time you ever heard a rich person say my house made me a rich? The bank owns the home not the "homeowner". Stop making payments on it and watch what happens. Watch and listen to everything you can by Grant Cardone on renting vs buying BEFORE you ever sign your name on the "dotted" line and yes it is dotted. Get a magnifying glass and take a look at that line on your check book where you "sign" your NAME. Write that down.

Webedumbmaybe wrote:

House is $160,000 and we have collectively $7000 to put down. House is in an area that has been gentrifying over the past 5 years.

If you have any money to spare, use it to move to a city that isn't an armpit.

Where I am, $160K won't buy you a condemned shack on a vacant lot.

don't do it. sounds like a very leveraged bet on both the neighborhood becoming more trendy and a recession not beginning within two years. If you want to speculate like that, buy long-dated call options on Amazon or Netflix or something with your $7k, risk would be the same. Why not alternatively put your $7k in a 2% savings account, save more for two years, move, then think about buying a house.

Pics? wrote:

Pics?

Of the house?

How long have you been together, and what are your plans for the future?

My personal reason for getting a house is having the security of owning your own place,

which is hard to do if you're only living there for 2 years. I would rent for the first 2 years,

and make plans for what you're going to do after that.

When you're ready to settle down in one place, for a very long time, then look into getting a house.

Stop pretending to be married.

No

Perfect house for Halloween. I would definitely buy it.

Fixerupper wrote:

Pics? wrote:

Pics?

Of the house?

https://www.flickr.com/photos/darthbengal/460367021

A lot of good feedback has been given. In general it is risky to buy something with a co-buyer if the relationship is not really solid and long term. Housing prices in general in this country have somewhat plateaued and to me the risk is there for a pullback in the next 2 years. See Case-Shiller index. Since you don't have much of a down payment, if prices fall you could be underwater when you sell.

Do not buy a house. Like someone said the closing costs will get you. Closing costs to purchase are about 3% and to sell are between 8-10%.

https://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html