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Rent before buying when relocating?
08-08-2011, 11:06 AM
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#1
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,206
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Rent before buying when relocating?
We are most likely going to relocate in the next few years, and the places on our short list are all cities we've never lived in. It certainly makes sense to rent first, months if not years, but the thought of moving twice within a few years (or less) and throwing away money on rent is hard to fathom. We rented an apartment once when we moved and built a house, it was a big hassle, but at least Megacorp paid for moving and storage - not this time of course.
Have any of you actually rented when relocating, and thoughts if you did.
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
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08-08-2011, 11:33 AM
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#2
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gone traveling
Join Date: Apr 2009
Location: Eastern PA
Posts: 3,851
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How about just renting a furnished apartment/home? Sure, the furniture may not fit your "style" and it's a bit more expensive than an unfurnished place, but assuming you will select the city before you sell your current home, you could just leave the bulk of your "stuff" in place in your current home while you review your options...
If your plan is to sell your current home first, put as much as you can in local storage and get it after you select your new residence. Don't drag the big stuff all over the country.
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08-08-2011, 11:35 AM
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#3
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Moderator Emeritus
Join Date: May 2007
Posts: 12,896
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Renting for a while would allow you to get a feel for the various communities around town. After a while, you will be able to determine which community best fits your needs. If you plan on staying at your new location forever, it may be worth getting it right.
We rented before buying at our previous location (yes moving was a pain but, in all honesty, we didn't have much back then). We bought immediately at our current location because DW grew up in this town and knew where the good stuff was.
I agree with rescueme. If it were me, I would rent a furnished place, bring only a few suitcases with me, and put everything else in storage. There is no way I would pack and unpack everything twice.
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08-08-2011, 11:39 AM
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#4
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Full time employment: Posting here.
Join Date: Dec 2003
Location: San Carlos, CA
Posts: 635
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I've always rented first when moving to a new area. The money you spend on rent is trivial compared with the money you could lose making a bad real estate purchase decision.
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08-08-2011, 12:17 PM
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#5
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,474
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I would rent first too, and when we were planning to move to Springfield I had even checked out apartments that might suit us.
You probably have some idea of where you would like to buy, so I would suggest renting in that neighborhood. That way you can "test drive" the neighborhood, and find out more about the plusses and minuses of living there.
Renting a furnished apartment while putting your things in storage, is a great idea. You might want to check out places like Extended Stay America to see if they would suit your purpose.
Quote:
Originally Posted by Peter
The money you spend on rent is trivial compared with the money you could lose making a bad real estate purchase decision.
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That is a good point. The cost of renting an apartment for a year could be mentally categorized as part of the moving costs.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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08-08-2011, 12:27 PM
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#6
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Recycles dryer sheets
Join Date: Nov 2004
Posts: 245
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Quote:
Originally Posted by Midpack
...but the thought of moving twice within a few years (or less) and throwing away money on rent is hard to fathom. ...
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Midpack, I suggest that you look at the situation another way. Yes, I appreciate the annoyance of having to move, so I’m not quibbling about that, but your comment that you’d be “throwing away money on rent” is not the correct way to view the situation in my view. After all, you have to live somewhere. I suspect that the cost of renting down there will be substantially less then the combined costs of taxes, insurance, and the cost of your money (rarely considered during these discussions).
Further, had you made this move a year or so ago, how would you have felt had your newly purchased home fallen in value by 20%. No, renting would be a prudent thing to do until you find “your” place.
Best of luck,
Rich
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08-08-2011, 12:32 PM
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#7
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Gone but not forgotten
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 11,447
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We did rent for just about a year when we moved from New Jersey to Florida . Six months would have been plenty as it did not take us long to check out the neighborhoods and find a great house . We sold lots of furniture and tossed out a lot before the move so that helped . We rented a place with a garage so a lot of our boxes were stored there .We just unpacked the necessities .The second move while annoying was easier because we only had them move the furniture .We moved all the boxes in our cars . The thing that I found was the biggest help was getting the local newspaper for six months before the move . It helped us narrow down the neighborhoods. I absolutely hated renting . It seemed so temporary . If I had to do it again. I would rent for the shortest time possible .
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08-08-2011, 12:36 PM
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#8
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Recycles dryer sheets
Join Date: Jul 2005
Posts: 216
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W2R, what made you pick Springfield,MO as a place to live?
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08-08-2011, 12:45 PM
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#9
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,474
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Quote:
Originally Posted by Dancer373
W2R, what made you pick Springfield,MO as a place to live?
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No hurricanes, low crime compared with New Orleans, big enough town for me but small enough for him, good medical facilities, and most of all, very low cost of housing and low cost of living. Oh, and not too cold! We eliminated the far northern states right off the bat.
We searched for a location and by 3-4 months after Hurricane Katrina had selected 3 places that met our criteria - - Springfield (MO), Huntsville (AL), and Fayetteville (AR). We visited all three and loved Springfield. It also happens to be where my grandparents lived, although I have no relatives or acquaintances there now. In the 50 years since I had last been there as a child, it has changed drastically and for the better. After vacationing several times a year to Springfield from 2005-2010, we decided it was the one.
However, we have put that plan on hold for at least 5 years. New Orleans seems to be recovering, and our memories of the Katrina nightmare are fading. Also, F. thinks he may need a part time job, and could find one here more easily than in Springfield.
Springfield is still our "backup location", though. If we end up wanting to move, we will move there.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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08-08-2011, 12:55 PM
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#10
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,592
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Quote:
Originally Posted by Midpack
We are most likely going to relocate in the next few years, and the places on our short list are all cities we've never lived in. It certainly makes sense to rent first, months if not years, but the thought of moving twice within a few years (or less) and throwing away money on rent is hard to fathom. We rented an apartment once when we moved and built a house, it was a big hassle, but at least Megacorp paid for moving and storage - not this time of course.
Have any of you actually rented when relocating, and thoughts if you did.
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We rented before buying in South Florida and it made a difference. I think the cost is marginal, because while you are paying rent you are not paying property tax, house maintenance or mortgage interest. The benefit to us was we had time to get to know different towns, get a feel for the traffic, get to know the areas we would be spending our time (and $$).
If faced with the need to move I would do it again.
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08-08-2011, 01:18 PM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2006
Location: Washington, DC
Posts: 11,318
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I'm jumping on the rent bandwagon. Getting to know is city can make all the difference in the world, both on where to live and whether to stay.
__________________
Idleness is fatal only to the mediocre -- Albert Camus
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08-08-2011, 01:53 PM
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#12
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Recycles dryer sheets
Join Date: Sep 2010
Posts: 250
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Quote:
Originally Posted by W2R
No hurricanes, low crime compared with New Orleans, big enough town for me but small enough for him, good medical facilities, and most of all, very low cost of housing and low cost of living. Oh, and not too cold! We eliminated the far northern states right off the bat.
We searched for a location and by 3-4 months after Hurricane Katrina had selected 3 places that met our criteria - - Springfield (MO), Huntsville (AL), and Fayetteville (AR). We visited all three and loved Springfield. It also happens to be where my grandparents lived, although I have no relatives or acquaintances there now. In the 50 years since I had last been there as a child, it has changed drastically and for the better. After vacationing several times a year to Springfield from 2005-2010, we decided it was the one.
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We are considering Fayetteville though we have never been there (been trying to get down there for about a year now for a visit). We have only driven through Springfield on the way to somewhere else (we have lived in St Louis most of our lives.) I think we might have stopped a couple of times to eat.
Do you mind me asking why, in particular, you like SPringfield better than Fayetteville? We were thinking the recreation opportunities would be better in Fayetteville and the climate might be a tad bit better though we might be kidding ourselves on that one.
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08-08-2011, 02:05 PM
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#13
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,474
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We liked Fayetteville better on paper. But once we were there, we just liked the way Springfield was laid out better. Also, some of the hills in Fayetteville are quite steep. There's absolutely nothing wrong with Fayetteville, though. It's a very nice town too.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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08-08-2011, 03:02 PM
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#14
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,206
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I know you didn't ask me, but climate is of course a personal preference. We lived in Florida for 3 years and Texas for 7, and we'd never live that far south again. We like 4 seasons. We're near Chicago now and spring, summer and fall are wonderful - but winter is admittedly tough. We're thinking Virginia or North Carolina. I suspect Springfield is 4 seasons with moderate winters too.But Fayetteville is the perfect place for others, I don't dispute that at all...
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
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08-08-2011, 03:33 PM
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#15
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Administrator
Join Date: Jul 2005
Location: N. Yorkshire
Posts: 34,057
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Quote:
Originally Posted by Midpack
Have any of you actually rented when relocating, and thoughts if you did.
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We did this several times with megacorp moves, and DD and SIL are in the process of moving to the Seattle area from Texas and are also planning on renting for several months before buying.
You know it makes sense ....
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Retired in Jan, 2010 at 55, moved to England in May 2016
Enough private pension and SS income to cover all needs
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08-08-2011, 04:28 PM
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#16
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2006
Posts: 12,880
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We considered this when moving from the city to the country. We might have rented, but we were quite sure we would be happy here (we are), and we found a good house before we had to make the move. I hate moving, and storage and renting is expensive and troublesome.
Could you take a long vacation somewhere before moving? Perhaps two weeks in the new location would be enough to know.
I'd suggest making a list the things that might make you not like a particular location. How many of those could you not learn about in a few weeks?
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Al
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08-08-2011, 04:46 PM
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#17
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,474
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Quote:
Originally Posted by Midpack
We're thinking Virginia or North Carolina.
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Good choices! Those states have a LOT of natural beauty, IMO, even though their eastern shores can be hard hit by hurricanes.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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08-08-2011, 05:24 PM
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#18
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Full time employment: Posting here.
Join Date: Apr 2008
Posts: 702
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I think that renting is an excellent idea. I would do the same thing. My parents rented when they first moved to Florida years ago. My daughter took a job in another state and is renting for the first year.
I have friends who did this. They put many of their things in storage and rented a smaller town house for a couple of years. Eventually a dream house was purchased and they only had to pack up the things that they did not put in storage.
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08-11-2011, 09:19 AM
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#19
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Location: Leeward Oahu
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If it's not too late to jump in here, I'll give the perspective of one who bought instead of rented. You can draw your own conclusions.
First, the reason we bought was to "reserve" a place at a time we could afford to buy (1983 Hawaii). We were able to assume a VA loan at a good interest rate. Since we didn't plan to move for at least 20 years (turned out to be 25) we figured that we would at least be "participating" in the local housing market. i.e., if prices went way up, we would have a place to start out and/or "exchange" for another place.
So, we think it made sense (and still think that) to buy instead of waiting to rent.
BUT! Let's pretend that we just purchased the place when we first moved and see what can happen. When we arrived, we no longer liked the place as much as we did at the time of purchase. Our tastes had changed. We had more expensive tastes - or else the willingness to "sleep-on-the-beach-if-that's-what-it-takes-to-move-to-Paradise" mentality had evolved to "we-need-a-PLACE-on-the-beach". So, from almost the time we moved, we began looking for the "better" place. Took 2 years to find.
Now, the story could have had an unhappy ending, but it did work out due to the capriciousness of the housing market(s) in Paradise. We were just about able to "trade" for the place we wanted.
So, my recommendation is to either be "lucky" as we were or else rent first to get the lay of the land. Naturally, YMMV.
__________________
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Anything which can be used can be misused. Anything which can be misused will be.
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08-11-2011, 09:45 AM
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#20
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,206
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Quote:
Originally Posted by Koolau
So, my recommendation is to either be "lucky" as we were or else rent first to get the lay of the land. Naturally, YMMV.
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Clever ending, and I'm glad it worked out well for you. I don't think real estate has stabilized yet, though I don't think most markets have far to fall. There will be bargains for years to come IMO, with appreciation unlikely and low interest now almost guaranteed until 2013...
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
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