To buy a house, or not to buy a house

[verygoodthings]

Just a comment, since original poster seems very comfortable with the "immediate" equity of a short sale.

As other people posted, this may or may not be the case. I think realtors and people in the industry try to suggest that shorts are priced below market (I've heard 15%, I've heard 10%). On any case by case basis though, you really don't know for sure.

Don't forget the closing costs to buy.

And don't forget the costs to sell (realtor fees amongst other things that will pop up).

Equity isn't a number that you can easily calculate. If you get into a house and decide its not for you, or your employment picture changes (Referring to Nords words of caution), you are probably going to come out a loser in the short term.

Keep playing with numbers, you sound like you are approaching this very sensibly. Just try not to have too optimistic of an outlook, it could bite you.

 

[eridanus]

Get a roommate. That'll split the utilities and give you a little extra cash each month for the inevitable repair.

 

[In-control]

Location, Location, Location. Some places are very depressed and purchasing a home may be a bargin compared to renting. Others not such a good deal. If you are married and starting a family you will quickly find that you will be considering things like schools, nieghborhoods etc over a tax deduction. Those things may be mutully exclusive as a depressed area has lower tax revenue and are cutting services like school programs. For us it is was hard to find a 3 bedroom rental that was less then a morgage, espeically when you want to stay put for 20 yrs.

We found it hard to retire early with a morgage and the many unforseen expences that home ownership can bring. Are kids are almost all in college and we will be renting a 2 bedroom that includes heat and hot water in an area with a low population. That way we can utilize the equity in our house and have the flexibilty that retiring early can bring.

I also like the idea of having a consistent expence that is all inclusive to control your budget.