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Thread: To buy a house or rent?

  1. #1
    Bronze Member Beautiful-Love's Avatar
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    To buy a house or rent?

    It's been something on my mind for a while now.


    I have spoken to my boyfriend and also family members. Half think that I should, and the other half no. We just have a baby girl in July and now we need to upgrade to a two-bedroom. Rent is already high. So I'm thinking of buying a house/condo/townhouse so at least I'm not just wasting $24000+ a year on rent. The thing is my partner is a stay at home dad (my family is out of state and really no one we can leave our baby with daily) and I work nights about 160-180 hours a month. Buying a house would mean pinching for pennies, living paycheck to paycheck for about the next 9 years (student loans).

    It's probably doable with about 1500 bucks a month left for personal expenses/food,etc. I'm just afraid of what if my 160 hours become less? Or what if something happens and I can't make the mortgage payments. Right now, I am making a pretty decent income for the last 2 years. I just feel like the financial burdens would be on me, but it might be worth it to own a place.


    Do you guys think it is wise to buy or just rent for now?
    If buying I'd probably be paying about $1-1.3K more a month. Once I pay off my student loans, it would be so much easier and my daughter would be 9-10 years old by then.
    Unfortunately we can't really move too far either due to family situation.


    Do you guys think it is best to purchase and invest in a owning a property. Or it is more wise to rent?

  2. #2
    Platinum Member boltnrun's Avatar
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    Why can't you wait until your child is in school full time? That way your boyfriend can get full time employment and you won't be the sole wage earner and burdened with the full mortgage.

  3. #3
    Platinum Member Wiseman2's Avatar
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    Have you spoken to a CPA or financial adviser? A neural party (not banker or realtor) and not an emotional party (friends/family)? That may be the best way to navigate this and set some short term and long term plans. Home ownership is more than just mortgage payments.
    Originally Posted by Beautiful-Love
    I
    I have spoken to my boyfriend and also family members. Half think that I should, and the other half no. We just have a baby girl in July and now we need to upgrade to a two-bedroom. Buying a house would mean pinching for pennies, living paycheck to paycheck for about the next 9 years (student loans).

  4. #4
    Platinum Member smackie9's Avatar
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    Buy a place that has an extra suite that you can rent out. These are called mortgage helpers. Rents are high, so means you can be competitive and offer a lower price leaving you having NP finding renters. Also you can look at it as a short term investment if you bring in a familiy member to help out. Live in it for 5 years, and sell it before the mortgage needs to be renewed. Take the equity, and place it into a bigger place or use it as a bigger down payment, and repeat till you are mortgage free.
    Stay at home dad can start a babysitting business on the side for tax free income.

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  6. #5
    Gold Member SarahLancaster's Avatar
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    Originally Posted by boltnrun
    Why can't you wait until your child is in school full time? That way your boyfriend can get full time employment and you won't be the sole wage earner and burdened with the full mortgage.
    That's good advice. When your child is in school, your boyfriend can contribute to the expenses, unless you plan to have more children you can't afford.

  7. #6
    Platinum Member melancholy123's Avatar
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    I fully believe in owning a home, be it a house or condo. Investing in a home of your own will pay off down the road. A house goes up in value just by living there, as long as you take care of it. You wont likely lose with real estate.

    I became mortgage free at age 34 due to hard work and some luck. I like the idea of buying a place where you can rent out a suite be it in the basement or a separate bldg., something to help offset the monthly mortgage. Rent is money down the drain.

    Talk to a financial advisor, not a friend or relative who will be biased.

  8. #7
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    Why would someone need to watch your baby daily, if he is "a stay at home dad?" Isn't this why he is staying home?

  9. #8
    Platinum Member smackie9's Avatar
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    Another piece of advice is that you can consolidate all your debt into that mortgage, so you can have a doable payment that can also leave room for some savings for emergencies.

  10. #9
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    What line of work was your boyfriend in before baby?
    Is he a stay at home dad because he was unemployed or did you decide it made more sense for him to stay home?
    Before you look at buying, which you are right, you will have the equity should you decide to sell it - is there something he can do job wise. Lots of stay at home moms telecommute to be with baby or have an etsy shop if they had been in an artistic field, etc, or do freelance work to enable them to stay home with baby because they do it while baby is napping, or while their husband is home but they can still take breaks to spend time with him. Or they work weekends or evenings when their husband is home to care for the kids.

    Can he work using a combination of working when you are at home, and hiring a babysitter once or twice a week? Even if its not full time, it will be easier for him to go back to work when the child is in school and the budget will be more doable. There are many people who live away from families , even if he works one full day and a few evenings and you only really need a sister for a few hours on two days, it could be doable

    Also, I would put the house only in your name if you are not married, just FYI.

  11. #10
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    Originally Posted by smackie9
    Another piece of advice is that you can consolidate all your debt into that mortgage, so you can have a doable payment that can also leave room for some savings for emergencies.
    The only reason i would not consolidate the student loans into the mortgage as payoff rules may change over the years - the student loan may be able to be refinanced with different rules, qualify for partial forgiveness, etc.

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