Results 1 to 23 of 23
  1. #1
    Join Date
    May 2007
    Location
    Missouri, USA
    Posts
    2,640

    Renting & Buying

    (ps. im putting this in this forum because i wasnt sure where it should go. Todays living seemed appropriate)

    Me and hubby have been trying to buy his grandmas trailer home but my credit score and employment history in the UK cant be transfered to this country and so no lender or bank are willing to touch my income (ive only been working here for 3 months)

    because of this they would only work with my husbands income and unfortunatly $20K on a tax return isnt enough to get anything over $40,000 loan. The trailer is $40K but the other problem is no banks will give out loans for trailers/manufactured homes right now.

    so basically we couldnt get a loan for a trailer, and the highest loan for a house we could get approved for was $40k.

    We've decided to give up trying to buy a house I think, which is a great shame as its what we both wanted. we even found a great deal for $52k but we just cant get a bigger loan to buy it

    so we're looking at renting, its not cheap, its gonna cost $630-$700 for a 2 bed apartment, and we cant have a 1 bed apartment because of the baby on the way and the maximum occupancy limit for a 1 bed apartment is 2 people.

    its so frustrating trying to get anywhere to live!

  2. #2
    Join Date
    Mar 2005
    Location
    The Cloud of Unknowing
    Posts
    17,425

    Re: Renting & Buying

    I can relate PC. In South Africa it is not much better - as my girlfriend, a qualified architect found out, as we were looking into buying / building our own home. It just is not doable. The only people who can?

    Lawyers, bankers, and the like - the same people who are responsible for the whole economic bust - yet they seem to not negatively affected, in terms of lifestyle by their own idiocy.

    The butterfly counts not months but moments, and has time enough. - Rabindranath Tagore

    Keep true to the dreams of your youth. - Friedrich Schiller

    The only philosophy which can be responsibly practised in face of despair is the attempt to contemplate all things as they would present themselves from the standpoint of redemption. - Theodor Adorno

  3. #3
    Join Date
    Dec 2004
    Location
    oklahoma
    Posts
    6,161

    Re: Renting & Buying

    renting is probably better, once you add all the extra fees owning is more expensive, right now i rent for $830 a month and my roomate wants to buy a house, and the total cost for a 80,000 home ends up being nearly equal to what we pay to rent.


  4. #4
    Join Date
    May 2007
    Location
    Missouri, USA
    Posts
    2,640

    Re: Renting & Buying

    Quote Originally Posted by darkangelism View Post
    renting is probably better, once you add all the extra fees owning is more expensive, right now i rent for $830 a month and my roomate wants to buy a house, and the total cost for a 80,000 home ends up being nearly equal to what we pay to rent.
    I dont agree. This is what we worked out:

    Rent: $630
    Electric: $70-$90
    Pet rent: $50
    Cable: $100
    Insurance: $20
    Water/Sewege/Trash: $45
    Total: $935 per month

    for the house this is what we worked out:

    Mortgage: $385
    Electricity: $100
    Cable: $100
    W/S/T: $45
    Insurance: $30
    Total: $660 per month

    Also I like the idea of owning, paying all that money in rent means saving up for a house would be impossible once the baby arrives. With the money we'd pay on rent for an apartment would almost be as much as everything for owning a house which is insane but thats life.

    Its just trying to get a house. A friend of ours who is in the real estate business is helping us to look, with all those foreclosures maybe we'll get lucky. Theres a lovely house for $52K but we can only get approved for $40K right now. He said offer the $40K and see what happens. maybe we will.

    for now we'll keep looking!

  5. #5
    Join Date
    Mar 2005
    Location
    The Cloud of Unknowing
    Posts
    17,425

    Re: Renting & Buying

    Can't you or FB get access to some family money? Add it in to a deposit for the mortgage, and then (underhand) pay back the money to said family member? With the amount of money you seemingly would be saving, that should perhaps be possible?
    The butterfly counts not months but moments, and has time enough. - Rabindranath Tagore

    Keep true to the dreams of your youth. - Friedrich Schiller

    The only philosophy which can be responsibly practised in face of despair is the attempt to contemplate all things as they would present themselves from the standpoint of redemption. - Theodor Adorno

  6. #6
    Join Date
    Dec 2004
    Location
    oklahoma
    Posts
    6,161

    Re: Renting & Buying

    down payment, on a house you are needing to put down 20% or more, so they need $10,000 cash upfront. Also when they own they have property taxes, which is another $50 a month. Also depending on where they rent, water,trash may be included, it is at my place. So that narrows the gap a bit on the monthly costs. And that is still assuming no repairs, in an apartment maintenance takes care of that, owning a house they need to have money for it.

    It may still work out cheaper to buy, but not by a large amount.


  7. #7
    Join Date
    May 2007
    Location
    Missouri, USA
    Posts
    2,640

    Re: Renting & Buying

    Quote Originally Posted by Vautrin View Post
    Can't you or FB get access to some family money? Add it in to a deposit for the mortgage, and then (underhand) pay back the money to said family member? With the amount of money you seemingly would be saving, that should perhaps be possible?
    Sadly not a possibility, my own family back in the UK have just bought 2 other properties they are doing some extensive work on, so they have no money spare right now. my MIL also has no money spare she can borrow to us right now as her boyfriend recently took a loss in work at his job.


    Quote Originally Posted by darkangelism View Post
    down payment, on a house you are needing to put down 20% or more, so they need $10,000 cash upfront. Also when they own they have property taxes, which is another $50 a month. Also depending on where they rent, water,trash may be included, it is at my place. So that narrows the gap a bit on the monthly costs. And that is still assuming no repairs, in an apartment maintenance takes care of that, owning a house they need to have money for it.

    It may still work out cheaper to buy, but not by a large amount.
    down payments are normally 5%, at least thats what every bank/lender has told us so far. The largest downpayment we got quoted was $4,000, but generally it'd be $2,000. I have no idea where you got 20% from, you might wanan go read up on that.

  8. #8
    Join Date
    Oct 2004
    Posts
    3,288

    Re: Renting & Buying

    I'm still renting without much of a prospect of buying. It's the insecurity with a family that is difficult. Don't overstretch yourself, pepsi, but it is worth making what sacrifices you have to in order to buy if you can. Good luck

  9. #9
    Join Date
    May 2007
    Location
    Missouri, USA
    Posts
    2,640

    Re: Renting & Buying

    Quote Originally Posted by Meanon View Post
    I'm still renting without much of a prospect of buying. It's the insecurity with a family that is difficult. Don't overstretch yourself, pepsi, but it is worth making what sacrifices you have to in order to buy if you can. Good luck
    Thankyou, my husband says we should put the cats to work lol

  10. #10
    Join Date
    Feb 2010
    Location
    Roundabout
    Posts
    78

    Re: Renting & Buying

    I assume your looking to purchase in the US? Did you look into government sponsored first time home buyer loans?

    I've rented, owned, and I've been a landlord. IMHO owning is much better than renting if you plan on staying in the same area for a good period of time.

  11. #11
    Join Date
    Dec 2004
    Location
    oklahoma
    Posts
    6,161

    Re: Renting & Buying

    Quote Originally Posted by PepsiChic View Post
    Quote Originally Posted by Vautrin View Post
    Can't you or FB get access to some family money? Add it in to a deposit for the mortgage, and then (underhand) pay back the money to said family member? With the amount of money you seemingly would be saving, that should perhaps be possible?
    Sadly not a possibility, my own family back in the UK have just bought 2 other properties they are doing some extensive work on, so they have no money spare right now. my MIL also has no money spare she can borrow to us right now as her boyfriend recently took a loss in work at his job.


    Quote Originally Posted by darkangelism View Post
    down payment, on a house you are needing to put down 20% or more, so they need $10,000 cash upfront. Also when they own they have property taxes, which is another $50 a month. Also depending on where they rent, water,trash may be included, it is at my place. So that narrows the gap a bit on the monthly costs. And that is still assuming no repairs, in an apartment maintenance takes care of that, owning a house they need to have money for it.

    It may still work out cheaper to buy, but not by a large amount.
    down payments are normally 5%, at least thats what every bank/lender has told us so far. The largest downpayment we got quoted was $4,000, but generally it'd be $2,000. I have no idea where you got 20% from, you might wanan go read up on that.

    Yeah they will give you a 5% down with an FHA government loan, but it needs to be FHA approved housing. Also the bankers want you to because its thousands of dollars in profit for them. Also your rates will be much higher. Also with only 5% down the risk of getting underwater on the loan is high, where the loan amount is more the the value of the home, then if you had to sell you owe money still. Its the same thing my roomate went through when he went to look, they promised him a 150,000 loan with 3% down.

    The Down Payment Hurdle: Mortgage Center - Yahoo! Finance

    Also im not trying to be discouraging, just want to make sure you don't end up being screwed by the banks


  12. #12
    Join Date
    May 2007
    Location
    Missouri, USA
    Posts
    2,640

    Re: Renting & Buying

    Quote Originally Posted by Ecliptic View Post
    I assume your looking to purchase in the US? Did you look into government sponsored first time home buyer loans?

    I've rented, owned, and I've been a landlord. IMHO owning is much better than renting if you plan on staying in the same area for a good period of time.
    Yes we were trying to purchase a home in the USA, however today we finally gave up after our last hope turned us down and said "come back in 12 months".

    Our biggest hurdle was trying to overcome the income to debt ratio. With no credit score and no employment history in this country, o bank or lender would look at my income so were basing everything off just my husbands income. Sadly we dont pass the income-debt ratio just on his income.

    So back to view the apartments we looked at last monday again on thursday and decide between the two we like the most. Its a shame but maybe after 12 months we can try again and I'll have 12-15 months worth of employment under my belt.

    Quote Originally Posted by darkangelism;126897
    Yeah they will give you a 5% down with an FHA government loan, but it needs to be FHA approved housing. Also the bankers want you to because its thousands of dollars in profit for them. Also your rates will be much higher. Also with only 5% down the risk of getting underwater on the loan is high, where the loan amount is more the the value of the home, then if you had to sell you owe money still. Its the same thing my roomate went through when he went to look, they promised him a 150,000 loan with 3% down.

    [URL="http://loan.yahoo.com/m/finance8.html"
    The Down Payment Hurdle: Mortgage Center - Yahoo! Finance[/URL]

    Also im not trying to be discouraging, just want to make sure you don't end up being screwed by the banks
    Majority of homes are FHA approved as we found out, some even fall under the rural housing loan approval, infact every house in this town (hillsboro, Missouri) does as its classed as rural. So we had two options open to us.

    Also the loan amount we asked for was never more then the house, we wanted $40,000 to begin with, and upto $50,000 if we could get approved for it. The interest on it was fairly good, the payments were quoted at about $350-$400 a month. And most of the properties we looked at were foreclosures or property that needs some work doing to it. This would mean that if we did sell it should sell for more then we bought it.

    However, thats al being put aside for the next 12 months while we apply for an apartment by the end of this month. We decided that although we have 1 pre-aproval for $40,000 we dont think it will pass the underwriters approval as thats where our application always seems to get stopped.

    Now to pick which apartment, Hubby likes one place and I like the other! We'll take our roommate with us on Thursday and get his opinion and then hopefully sign a lease!

  13. #13
    Join Date
    Dec 2004
    Location
    oklahoma
    Posts
    6,161

    Re: Renting & Buying

    yeah i need to look at apartments too, or negotiate a lower rent


  14. #14
    Join Date
    May 2007
    Location
    Missouri, USA
    Posts
    2,640

    Re: Renting & Buying

    ok we picked a nice apartment in a complex area set on a bunch of nice private land, swimming pool, tennis courts, basketball courts, laundry room, community room and the apartment we got over looks a big field and woods.

    Everyone is security checked, criminal background checks, sex offender list gets checked every month and updated too. so im happy with the choice, its a friendly and safe place to bring up the kiddo for the first year of his life.
    $610 = rent, water, sewage ,trash and pet rent.
    electricity is going to be $70-$100 a month
    and cable is $50-$100 a month

    so $800ish in rent a month, we have a roommate too who will be paying half so that makes it a lot easier.

    18 month contract so it should help build up my credit and employment history to try for a mortgage again once the lease is up.

  15. #15
    Join Date
    Oct 2004
    Posts
    3,288

    Re: Renting & Buying

    Good luck, pepsi

  16. #16
    Join Date
    Feb 2010
    Location
    Roundabout
    Posts
    78

    Re: Renting & Buying

    Sounds like a great place.
    “Be who you are and say what you feel, because those who mind don't matter and those who matter don't mind.” - Dr. Seuss

  17. #17
    Join Date
    Jul 2004
    Posts
    1,867

    Re: Renting & Buying

    In this collapsing economy, it is much better to be a renter than an owner.

  18. #18
    Join Date
    Mar 2005
    Location
    The Cloud of Unknowing
    Posts
    17,425

    Re: Renting & Buying

    I agree Paul. Especially if you are living in an area in which the prices of houses are still to drop significantly. A mortgage might result in you owning a house which is not worth as much as you are paying for. It also cuts down on flexibility; unless you can pay off the mortgage you'll be stuck where you are, and with the economy as it is, that may be a very bad thing.
    The butterfly counts not months but moments, and has time enough. - Rabindranath Tagore

    Keep true to the dreams of your youth. - Friedrich Schiller

    The only philosophy which can be responsibly practised in face of despair is the attempt to contemplate all things as they would present themselves from the standpoint of redemption. - Theodor Adorno

  19. #19
    Join Date
    Jul 2004
    Posts
    1,867

    Re: Renting & Buying

    It is a difficult situation for homeowners, I really feel for them. It must be disheartening to watch your home value plummet as the bills pile up and some face eviction. I really like what the Occupy movement is doing to help bring awareness to people who are being foreclosed upon, and helping them to stay in their homes. We need more of that community spirit of working together in opposition to the utter disregard for people practiced by Wall St.

    That being said, IMO I have to reiterate that it is completely nuts to buy anything right now. If I were optimistic about the future, and I am not, I would at least say wait until the bottom has fallen out of the market and things have stabilized before purchasing a home. The problem is that we are not there yet, and in my personal opinion, not by a long shot as it is going to get a lot worse before it gets better. I wish/hope I was/am wrong.

  20. #20
    Join Date
    Jun 2005
    Location
    Somewhere over the rainbow!
    Posts
    26,558

    Re: Renting & Buying

    Quote Originally Posted by Paul View Post
    In this collapsing economy, it is much better to be a renter than an owner.
    Actually there was a News item here not too long ago saying the exact same thing.
    Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around.


    True love is wanting to give to another person without any thought about
    who’s getting the better of the deal.

    Love always creates, it never destroys. In this lie's man's only promise

    ~All quotes by Leo Buscaglia


  21. #21
    Join Date
    Jul 2004
    Posts
    1,867

    Re: Renting & Buying

    Interesting! While I do not swallow everything I read from the mainstream media, this just seems like common sense at this point. It will eventually reverse but we are not there yet.

  22. #22
    Join Date
    Mar 2005
    Location
    The Cloud of Unknowing
    Posts
    17,425

    Re: Renting & Buying

    Even that is far from a certainty. I would not even bet going back to 19th century practices, certainly not if the bankers keep getting their way.
    The butterfly counts not months but moments, and has time enough. - Rabindranath Tagore

    Keep true to the dreams of your youth. - Friedrich Schiller

    The only philosophy which can be responsibly practised in face of despair is the attempt to contemplate all things as they would present themselves from the standpoint of redemption. - Theodor Adorno

  23. #23
    Join Date
    Jul 2004
    Posts
    1,867

    Re: Renting & Buying

    Eventually can encompass a long time

    I basically agree with what you are saying. If you are interested in watching a great documentary on the subject, I recommend checking out "Collapse" by Michael Ruppert (the link is to a streaming copy of the documentary).

    I have had a free membership in exchange for blogging on his site, for almost a year now: Collapse Network

    That whole subject is an interesting discussion that might require its own thread though...

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. buying furniture
    By darkangelism in forum General Discussion
    Replies: 8
    Last Post: 07-04-2006, 03:17 PM
  2. Renting U-Hauls
    By Luba in forum Entertainment
    Replies: 2
    Last Post: 10-28-2005, 10:47 PM
  3. Kid's Buying Christmas Gifts for Friends
    By Merika in forum General Discussion
    Replies: 13
    Last Post: 12-19-2004, 01:31 PM
  4. Compulsive Buying
    By Stone in forum General Discussion
    Replies: 11
    Last Post: 10-18-2004, 08:33 PM

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •