Having trouble thinking this through... thoughts?

odusgolp
odusgolp Posts: 10,477 Member
edited October 2024 in Chit-Chat
I have to move by Oct 15th (end of lease).

I can not buy due to circumstances in my divorce (although it was final 3 years ago). My IDEAL situation was to find a single family home I could rent, and then purchase once the legal formality is over (18 months from now). So, rent-to-own or land contract.

Unfortunately, I only found one house/owner willing to do so at a house I liked (I'm not going to buy just anything).

Now I have to decide:

1. Land contract this house - it's a tri-level, so no real basement, but I am fine with it (I don't need a basement at all). More, difficult to re-sale in this area b/c of that, however. I believe the owner wants about $4,000 more than it may be worth. I need to make an official offer to see what he comes back with. This is VERY short notice and I'm feeling pressured to make such a large committment. BUT, it enables me to stay put, own, get the tax benefits. I personally like the house, but I do wonder about it's resale?

2. Rent a condo. Face having to move again in 18 mos.

The price on either place would be the same. One an "own" for tax purposes, one a rent.

Any insight for me?
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Replies

  • Qarol
    Qarol Posts: 6,171 Member
    Yikes. I do not make snappy decisions. We viewed this house about 10 times before we decided to buy. If it were me under a time crunch, I'd rent until things were more settled to give me time to sort things through mentally.
  • ThePhoenixRose
    ThePhoenixRose Posts: 1,978 Member
    I'd say buy. Don't worry aobut resale, unless you're planning on selling within 7 years. If you are, maybe a condo would be better for you. My husband is a math teacher, and has figured out that, in general, (without knowing specifics) staying put for 7 years is kind of the tipping point for buying/renting.

    Good luck!
  • Iamfit4life
    Iamfit4life Posts: 3,095 Member
    I'd buy

    Chances are due to the divorce you aren't moving far anytime soon, correct?
  • kennethmgreen
    kennethmgreen Posts: 1,759 Member
    Buy. If it's something you like and can afford, don't let the need for a good deal force you into settling. I've watched so many of my friends wind themselves into a frenzy about making sure (dammit!!) they get the absolute best deal they could, then losing out on things they really wanted. Think of it this way. Even if the price is $4K more than you think its worth, would you pay the asking price? Is it a place you would like to live in for awhile? Is a place that feels like "home" to you? If you are going to stay for awhile, getting too caught up in resale value can be tricky, too. Who knows what the market will be like in 5 years. Obviously, don't throw your money away. But do what makes you happy.
  • Kaycurrier
    Kaycurrier Posts: 231
    Personally,I would rent a condo or something until the divorce is done. It gives you time to save and look around. You don't want to be locked into anything you don't want later or if you see something for a better price or that you like better later. Renting is cheaper, less responcibility of the home/land, and gives you time to save and think.
  • starwhisperer
    starwhisperer Posts: 367
    condo, but I am pretty use to moving, it becomes second nature. I would say any second thoughts on something huge like a house you want to own for the long term means it might not be the house for you.
  • odusgolp
    odusgolp Posts: 10,477 Member
    As a single mom it's so HARD to say where I'll be in 7 years? What if I actually meet a man and get married? I know... unlikely... *LOL*

    My parents are pretty set on me NOT buying this place... that I can do better once I can obtain my own direct financing.

    I just don't know... ugh.
  • odusgolp
    odusgolp Posts: 10,477 Member
    Personally,I would rent a condo or something until the divorce is done. It gives you time to save and look around. You don't want to be locked into anything you don't want later or if you see something for a better price or that you like better later. Renting is cheaper, less responcibility of the home/land, and gives you time to save and think.

    To be clear, I AM divorced. Have been for three years. And thusly have also been renting for three years.
  • auntiebabs
    auntiebabs Posts: 1,754 Member
    I'd say buy. Don't worry aobut resale, unless you're planning on selling within 7 years. If you are, maybe a condo would be better for you. My husband is a math teacher, and has figured out that, in general, (without knowing specifics) staying put for 7 years is kind of the tipping point for buying/renting.

    Good luck!

    I've had a friend who recently went thru a divorce .... his plans have changed about 42 times in the past 2 yrs. I don't know your personality or your circumstance, but when rebuilding you life lots of things come up that you don't expect... flexibility may not be such a bad thing If you still need some time to get your footing.
  • jamk1446
    jamk1446 Posts: 5,577 Member
    I'd say rent. That business due to the divorce is an estimate, you don't know how long it will actually take to get straight.
  • gdr1976
    gdr1976 Posts: 460 Member
    I'd say rent for now. Moving sucks, but then once all the legalities are over you can buy what you want.
  • odusgolp
    odusgolp Posts: 10,477 Member
    I'd say rent. That divorce business is an estimate, you don't know how long it will actually take to get straight.

    I am divorced for three years now... so that stuff is all as final as it gets :)
  • sjtreely
    sjtreely Posts: 1,014 Member
    I can't imagine ANYONE asking a price more than the value of a home much less than actually getting it. In this market, you should be able to find what you're looking for. It's a buyer's market. The price for my home has dropped 44K and it still won't sell. There's got to be something out there.

    For me, I'd go condo in a heart beat. The time you'll save in lawn care, etc. would be worth it. But I'm trying to down size and simplify. You, on the other hand, may have a need for a yard with your child.

    Best of luck.
  • RJSuperMan
    RJSuperMan Posts: 52 Member
    Condo. Never buy anything when you feel pressure. Not the mention, you've already given every reason why shouldn't buy it. You're looking for an accomplice, aren't you? :)

    (Those who ask for advice are usually asking for an accomplice) ~ Unknown
  • odusgolp
    odusgolp Posts: 10,477 Member
    I can't imagine ANYONE asking a price more than the value of a home much less than actually getting it. In this market, you should be able to find what you're looking for. It's a buyer's market. The price for my home has dropped 44K and it still won't sell. There's got to be something out there.

    For me, I'd go condo in a heart beat. The time you'll save in lawn care, etc. would be worth it. But I'm trying to down size and simplify. You, on the other hand, may have a need for a yard with your child.

    Best of luck.

    My appeal of the house is having a yard, a garden, letting my dog out, being on the "first floor" whereas in the condo i'm on the second floor and have the stairs no matter what.

    Then again... no yardwork.

    Ugh. This decision is so not as black and white as I wish it could be!
  • taso42_DELETED
    taso42_DELETED Posts: 3,394 Member
    Rent until you find The Perfect Place. Then buy it and break your lease.
  • 99clmsntgr
    99clmsntgr Posts: 777 Member
    If you don't have a basement where are you going to hide the bodies?
  • odusgolp
    odusgolp Posts: 10,477 Member
    If you don't have a basement where are you going to hide the bodies?

    The shed out back. I definitely thought that through.
  • wendywright10
    wendywright10 Posts: 8
    If I were you, I would look for a forclosed home. For one, they are much cheaper than a big fancy house. If you were to find a desent place for about $89,000, your payments would only be about $600 a month. Also, you can fix it up to your liking and be able to sell it for more than what you bought it at. The market is still down, and who knows if it will go back up soon. Therefore, you want to find a place with nice location and something that is fixable! Tell your realtor to look up some forclosures for you that are in your price range. You will be amazed with what you can find out there!
  • jknops2
    jknops2 Posts: 171 Member
    My opinion, rent, looking at the housing statistics, prices are not going up. rather down in the next two years. But the who knows, your call.
  • sjtreely
    sjtreely Posts: 1,014 Member
    If I were you, I would look for a forclosed home. For one, they are much cheaper than a big fancy house. If you were to find a desent place for about $89,000, your payments would only be about $600 a month. Also, you can fix it up to your liking and be able to sell it for more than what you bought it at. The market is still down, and who knows if it will go back up soon. Therefore, you want to find a place with nice location and something that is fixable! Tell your realtor to look up some forclosures for you that are in your price range. You will be amazed with what you can find out there!

    Great idea!
  • odusgolp
    odusgolp Posts: 10,477 Member
    If I were you, I would look for a forclosed home. For one, they are much cheaper than a big fancy house. If you were to find a desent place for about $89,000, your payments would only be about $600 a month. Also, you can fix it up to your liking and be able to sell it for more than what you bought it at. The market is still down, and who knows if it will go back up soon. Therefore, you want to find a place with nice location and something that is fixable! Tell your realtor to look up some forclosures for you that are in your price range. You will be amazed with what you can find out there!

    Great idea!

    We apparently missed the part, however, where I said I can not buy :)
  • ninerbuff
    ninerbuff Posts: 49,050 Member
    First I'd figure out if I was going to stay long enough in the area. If you are then the next thing is to low ball the house. I'd shoot for $7,000 to $10,000 under. It sounds ridiculous, but you don't want to pay more than what it's worth. The owner may come down if they are serious enough about selling.
    Buying a house today has so many options because prices are way down right now.
  • ninerbuff
    ninerbuff Posts: 49,050 Member
    If I were you, I would look for a forclosed home. For one, they are much cheaper than a big fancy house. If you were to find a desent place for about $89,000, your payments would only be about $600 a month. Also, you can fix it up to your liking and be able to sell it for more than what you bought it at. The market is still down, and who knows if it will go back up soon. Therefore, you want to find a place with nice location and something that is fixable! Tell your realtor to look up some forclosures for you that are in your price range. You will be amazed with what you can find out there!
    Dang, I bought my house for $605,000 last year. How big is a house for $89,000 where you live?
  • BondBomb
    BondBomb Posts: 1,781 Member
    Just move in with me. Our kids can be playmates.
    Honestly I have moved 18 times in 20 years. It's ridiculous. I want to be settled but I hated being a homeowner. It's something that you really have to be ready for in every way. 18 months isn't that long to wait for a situation that better suits you.
    I have a huge decision about my living situation too. It all sucks.
  • cantjustcant
    cantjustcant Posts: 1,027 Member
    if you really like the house, rent it for a year with the option to land contract at the end of that period. In the year you can find anything wrong with the house that you wouldn't discover before! Plus you can get any repairs that need to be done on the landlord's dime! That is what we are doing in our house right now.
  • odusgolp
    odusgolp Posts: 10,477 Member
    I've been a homeowner since I was 23, and I'm an accountant :) So that doesn't scare me at all... It's impossible for me to say where I'll be in 7 years. Still in my city YES, but meet a man? lose my job? something else... who knows.

    And as far as market price - it depends on where you live :) Here a 1500 square foot home is about $150K. A 2500 square foot home about $300K.
  • odusgolp
    odusgolp Posts: 10,477 Member
    if you really like the house, rent it for a year with the option to land contract at the end of that period. In the year you can find anything wrong with the house that you wouldn't discover before! Plus you can get any repairs that need to be done on the landlord's dime! That is what we are doing in our house right now.

    That is what I'm going to propose! Rent for 9 mos (he can then list in summer months) with a revisit of the land contract then. Problem is, he doesn't want to be a landlord... which I get... But I can at least ask!
  • odusgolp
    odusgolp Posts: 10,477 Member
    And for the record, I really really thank you for your input. I'm really struggling with two very different situations with pluses and minuses to both and appreciate helping me think about the options.
  • odusgolp
    odusgolp Posts: 10,477 Member
    Well, my decision was made for me when the condo rented this morning to the first party to even go see it *LOL*

    Guess the house is the way to go... At least I hope...
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