•••quote:•••Originally posted by Darth Vader:
•Even if banks would allow you to purchase a home (which I don't think that they would, most of the times you need at least 20% down payment and you can't pay for the mortgage with student loans); I wouldn't recommend it for anyone who is only planning on living there a few years (4-8). The real estate fees alone are ~7%, and then you have bank fees and you have to go to the trouble of trying to sell the house X number of years down the road with no idea about how the market will be then making it all not worth it.•••••This is terrible advice. Buying a house was the best thing I ever did. My mortgage payment is less than my rent was plus I have a huge tax deduction. I was careful, I bought a house in a nice neighborhood within walking distance of the medical center. There is fairly high turnover with new residents comming in every year so selling it will not be too tough. There are tons of other advantages. I don't have to fight for parking, I don't have to worry about the idiots above me working on their carving project at 3 AM (oh my god the hammering), I don't have to worry about the pot smoke wafting from those who lived below me (an advantage for some of you no doubt).
Here's what you need:
1) In your area, is the price of a home low enough so that the mortgage payment is comparable to a rent payment? Don't forget to factor in taxes and utilities.
2) Do you qualify for an FHA loan which will allow you only to put down 3% (yes -- 3%)!?
3) Does someone love you enough (with an income and good credit) to co-sign the loan?
4) Are there good homes in a neighborhood where the market is stable and that has decent resale potentional?
5) Will the tax deduction be an advantage to you?
My wife and I will own our home for three years (unless I match here). We figure that we will break even on the house because the tax advantages will balance off the fees and closing costs.
Ed