Rent vs. Buy

[inanna]

Well... i think, unless miracle appears, we will be moving to another rental when we leave this house.

1) wingedelf will be renegotiating salary w/ Virtuoso in a year... if, at that time (after he has proven himself in the position and taken as many "certification" classes as they offer) they are unwilling or unable to bring his salary more in line with local median pay for the job description, he will likely be looking for another job. Which means the liklihood that his job will NOT be next to the one he has now... so if he should change jobs we could be (if we bought) stuck with a house for 4+ years that is not near his job.

2) By waiting a year we will be 5+ years our from our bankrupcy.

3) By waiting we will have another year of good credit information on our credit report.

4) By waiting we will have the opportunity to save up a decent amount of money (especially if we rent on the cheaper end of our spectrum) for down payment/closing costs/etc.

Yes... i know things will only get more expensive... but i just don't see us having the savings to afford to buy - and our budget is still too tight to afford $2000/month for mortage easily... and there is little in Seattle that would come in under that with our credit history.

i just called on a place in Shoreline.... $995 for 3 bedrooms.... and emailed about another that is $1600 for 5 bedrooms (roommate maybe??) in W. Seattle.

Comments

[hottoastermama.livejournal.com]

Shoreline, Lake Forest Park, Edmonds....they are really good areas. The rent seemed cheaper since it was a bit out from downtown, but it's still fairly close to everything and family/kid/pet friendly in general.

[inanna.livejournal.com]

*nod* Just South/South East or North of the city seems cheaper. :)

[hottoastermama.livejournal.com]

It is a nice area too, and I felt safer in LFP than in the little "cozy cottage" behind you. It was fine to start out in, but I felt very insecure being there just me and a kid. The fire bombers were going through our neighborhood June/July of '04 when I was there. (Ok, I was more terrified of the spiders. And you know terrified is putting it mildly. I'm getting better, and there are no giant spiders of doom around here - I don't want to hear about poisonous ones, ignorance is bliss lalalalalala).

[singingnettle.livejournal.com]

Rents are sort of scary now. Kirkland actually has very nice values IF you can share; the houses are of a more share-able size than you typically find on the other side of the lake.

[inanna.livejournal.com]

If it is just our family, we NEED 3-4 bedrooms, 3 minimum, 4 to be nice. If we shared with someone we would have to have 5 bedrooms... which gets more difficult to find. We do have a friend with whom we've discussed housesharing... but, while i know she likes us/our kids, i am afraid of losing her friendship as she is childless and our monsters really are the center of our life most of the time.

Still... if you see sharing sized houses (up to about $1800-1900) - or smaller ones) please do let us know. Thanks!

[singingnettle.livejournal.com]

Actually, lots of them around here in Kirkland. They are often deceptively listed because they have basements or dens or other kinds of bonus rooms that can be used as bedrooms.

Also the U Dist but those houses won't be available 'till July.

I'm not actively looking at ads so I might not see anything, but I'll keep my eyes open. There is one across the street from me for rent...but I think it's 3 bdrm plus maybe a bonus room for $1900 or so. I will inquire, though.

[ravenlaughing.livejournal.com]

Ahem. Your children are NOT monsters. They are very intelligent and perfectly normal kids, with all the pains and smiles there entailed. I am childless by choice, but that doesn't mean I don't adore yours. ;) Remember, I've seen them screamy, cranky, and sick as a dog, and I still come over...

*hugs*
You'd never lose my friendship, love.

[arienm.livejournal.com]

Sounds like a fairly reasonable decission. Most people think that buying is the end-all, and once you buy you don't need to worry, but keeping in mind that he might well be changing jobs, the idea of holding for a year might very well pay off, as you will have much, much better flexibility. Which, when job hunting, pays.

*hugs* to all of you, and hopefully things will work out for the best. Just remember to keep some time aside for relaxing, moving is very stressful.

[inanna.livejournal.com]

*nod* And yes, it can/is. :) i can't wait to own a place...but i can wait until it is a good time.

[emmacrew.livejournal.com]

wrog is positive real estate prices are going to go down soon. Of course, he's been saying that for a few years, but he's usually fairly accurate about other financial-ish stuff. So waiting might be the fiscally sound thing to do, too.

[inanna.livejournal.com]

i have heard from a couple sources that the housing market will soon slow, if not go down.

Of course, reading his blog reminded me of Jennifer Government... so i have started a new nationstate :)

[emmacrew.livejournal.com]

Sadly, I let my nationstate die. :-( I think he'd be amused by the observation... I'll tell him when he gets home from running errands. :-)

[singingnettle.livejournal.com]

We just went through the same sort of decision process. Even when you know it makes good sense, it's a little painful to put aside the dream, no?

Everything does say the housing market will slow down in areas that are currently overvalued. (I think some areas that are currently undervalued, like Renton and Delridge and White Center, will appreciate.) I don't expect things to drop, but maybe they'll at least hold.

We can hope, anyway.

[white-wolf-wmyn.livejournal.com]

It's ok not to buy. When I owned my own house, I nearly went bankrupt trying to keep it all together. There are so many more expenses and responsibilities that are not looked at with the mortgage and taxes.

Things will be better later. Trust that it will work out fine, and it will.

I love you, Sister. Hang in there!
*HUGS*