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Originally Posted by ken0042
So for everybody saying to buy- what happens when she wants to move at the end of school? The realtor costs involved in selling would kill any amount gained in mortgage payments. Sure- she could rent it out after; which brings about a new set of challenges.
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It's an investment and the OP will be really happy in 20 or so years when he has the condo paid off and it is worth 400K or more. Will be a nice little retirement plan while still looking after his kids.
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I'd go with renting. You are not "throwing money away" by renting; contrary to what so many people would have you believe. You are paying to have a place to live; without having a long term commitment. Plus the added value I find with renting is it gives you the chance to try out different styles of homes, and find what you like. I have seen so many people "throw money away" by buying the wrong home for them too quickly, and then moving within 2 years.
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I would never advise people to rent IF they can afford to buy (whatever that means, because you are usually paying more to rent than you would to buy in my experience).
And you are 'throwing away money" by renting. If you bought, you'd be contributing to your mortgage instead of the home owner's mortgage. Sure there is a potential to lose money if home prices drop but the way the housing market is going it is not likely at all.
And you're right you do get to try out homes if you rent but I don't that is worth the amount of money you put into someone else's pocket. Rental units are long-term investments. If he wants to sell it as soon as his daughter leaves school then yeah it might be better to rent but he can also keep it for 25 years and let a company handle the dirty work while not having to do anything himself and still make a profit down the road.
Not many homes going on the market and an abundance of buyers means you'll likely see the prices go even higher. I bought a rental house a year and a half ago for $210,000. I could get $300,000 for it right now easily. Even after Realtor fees you're still making a nice profit without doing much. Home prices are going up and the people who own houses will be the ones who benefit.