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Visitor
Shinygirl
Posts: 3
Registered: ‎02-24-2013
0

To buy or to keep renting?

We have been in LA nearly 4 years. We rent a home we love and are very happy in. Amazing views. Private..Amazing neighbourhood.

Also, not bad school near by which we can walk to, whitch we will need in  2.5 years.we havenever been happier in a home, aside from when things go wrong and the land lord tries to avoid fixing them..so we fix them ourselves now!!

Now my husbands company is starting the green card  process for us...should take ten months from now.we are delighted.

We hope we stay long enough to get those cards as we love living in this beautifulcountry.But the economy being what it is, no job is guaranteed. Until we have those cards in our hands, nothing is a given, and buying would be foolhardy. 

So we are so excited to buy a place once we are not just tied to one particular job,but keep holding off for those green cards.

However now we think about it , if we have the freedom of theUS maybe we will leave LA  for a place where houses are cheaper and schools are better...Montana or Colorado...and my husband seek a job some place else.

 

Our dilemma is, if say we get to stay in LA for another 5 years....for example, would we be better buying and selling in 5 years or renting for another 5 years.

I know, who has a crystal ball? In 4 years we have spent 100 k on rent already....just to give some numbers.

We would be looking at buying maybe a 500 k property Ina family area like Montrose,Glendale, and trying to keep home payment including tax around  2500 a month.....any more would be tough as I currently do not work.

Any one any thoughts on this please. I just feel another 4 years renting, means another 100 k plus down the drain....

But if we leave LA 4 to 5 years from now, will we struggle to break even, if we have to sell up....by break even I mean us being worse off than having spent 25 k eavh year on rent.we love LA, have amazing friends here, buthose house prices are off putting when there are so many other places that wefind beautiful, to live in  for so much less.we know we would make friends wherever we go.

Thank you in advance guys.

 

Contributor
site2thrive
Posts: 16
Registered: ‎12-18-2008

Re: To buy or to keep renting?

This is a good calculator to answer your questions. Just type your numbers in. Good luck!

http://www.nytimes.com/interactive/business/buy-rent-calculator.html

 

Visitor
Shinygirl
Posts: 3
Registered: ‎02-24-2013
0

Re: To buy or to keep renting?

Thank you- will crunch the numbers.

Trusted Contributor
Mortmain
Posts: 196
Registered: ‎10-29-2012
0

Re: To buy or to keep renting?

Do you mind me asking where you are from originally? If you came from a country with lower home prices, then LA will come as a bit of a shock, but if you came a few years earlier, you would possibly have left by now. We are in the throes of a saw tooth recovery, and buying a home in this market is more for people who are putting down roots. If you are possibly leaving in a few years, continuing to rent is possibly a better option, especially since you like your rental home. However, it won't do any harm to research the areas you like, and attend a few open houses to get a feel of what is happening in the market. One important development you need to be aware of is that the number of homes for sale has diminished quite a lot, and this has led to competitive bidding. Inpite of what brokers might tell you, this is not normal and frankly is best avoided. Be very cautious, wary, and take a lot of the upbeat talk with a grain of salt. Unlike some states, CA prices for the large part did not correct and while interest rates are enticingly low, many are concerned with what happens when interest rates eventually go back up. You will be told that if you see a home you like, and can afford it then buy it. Buying a home is a huge financial commitment, and the more research you do, the better informed you'll be to make good decisions. Take you time, have a good look around and follow your instincts not the hype. From what you've said so far, it appears your instincts are in tact. Preserve them.