Is Buying a Home a Good Idea If You're Moving in 2 - 3 Years?
All things being equal, it's almost always better to buy; however, if your move is short term, there are a few things to consider, such as will the market have completely stabilized and begin appreciating in value again in 2-3 years? With this in mind, it may be worthwhile to deal with a landlord for a while.
If you plan on renting out your home when you move and hold the property long term, you'll build equity and get to write off your mortgage interest, insurance, property taxes, maintenance, depreciation, etc.
Here are some pros and cons of renting:
Pros:
Flexibility (can relocate easily)
Can invest money elsewhere
No upkeep fees (dripping faucets, broken dishwashers, etc.
Cons:
No Equity Annual
rent increase could outpace inflation
Pros and Cons of Buying:
Pros:
Tax-break: deduct mortgage interest and property taxes
Potential tax-free capital gain
You set your own rules when owning your home, not the landlord
Cons:
Less flexibility should you want to move;
in very bad housing markets, you could be upside down.
Mortgage Costs
In Conclusion, if you plan on turning your home into an investment property, take the plunge and enjoy homeownership! If you plan on selling your home in 2-3 years, it may be best to continue renting. It's really hard to predict where home prices will be in the next few years. I believe the market has already somewhat stabilized and home values will begin to appreciate with inflation again, albeit we are in a deflationary period. The latest CPI released was -0.8% year over year, but on a higher note, it has risen 1.0% month to month.In translation, although we're in a pretty good recession, the economy as a whole is beginning to slowly recover.
|
Article Source: http://EzineArticles.com/?expert=Joey_Dodge |
