Short term job promise_ should I buy or rent?

By
Real Estate Agent with Hale Real Estate

May I answer by asking you a few questions that you ought to consider before making a decision?

1) What is available to rent here in this aera that you would consider living in? At what rent $$?

2) How does rental cost compare to monthly costs on purchase of a similar property? did you factor in the tax benefits of homeownership? what about the closing costs of buying --spread over 2, 3 or 5 years?

3) Is your employer subsidizing your move? paying some or all of your closing costs? If they are, will they make a lump sum settlement to you if you do not buy, or is that money lost to you if you rent?

4) What is your risk tolerance? If it is not high you may consider rental more favorable, even in a stable, slowly increasing market.  People who make the decision to buy in this market may look VERY VERY SMART 2 or 3 years from now.  Real estate has certainly made a market correction from the peak prices that we hit in late 2006. Whether it is the absolute bottom before the next upswing we will only know AFTER the upswing.

5) Are you planning to take advantage of the great interest rates and minimum downpayments that are available now ? YES! THERE IS MONEY AVAILABLE IF YOU HAVE REASONABLY GOOD CREDIT!!  Try FHA 95-97% financing, for instance.

6) How sure are you that the job will end at 2 years?
6b) Would you consider renting the property after you move from this area. (You might have a very attractive interest rate to carry the property on if you jump in at todays record low rates ;.)

As an experienced Realtor here in the Cumberland Valley of Pennsylvania, I help my clients look at what is best for THEM, and that can only be done by asking the right questions and getting more facts of their situation than are typically included in a public forum.

Do yourself a favor! Get experienced, personal assistance when you are making such a big financial decision. It'll give you a great rate of return on investment!
Hope that helps. Mim Heisey
REALTOR GRI
HALE REAL ESTATE

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