Buying vs Renting

[MoooShuuu]

I always thought I would rent a place during dental school but I recently came across money that I could use as a down payment on a home near school (death in family). My parents are really pushing this because they think it is a "waste" of money to rent and they are willing to cosign.
I have been working full time for a year and will continue to do so until July so I think I would be able to get approved for something, especially with cosigners.
I have heard of some people getting a three bedroom place and renting two rooms and basically those roommates paying the mortgage. This is the route I would probably like to take.

I'm wondering if you all could give your two cents as to how buying a place would affect me getting student loans (in state). (side note, I have no debt right now and great credit) And other negative things about owning a place (beside upkeep and taxes). With the market today I could buy cheap and hopefully not lose any money come four years later and I want to sell. I am from this area so I could possibly rent it out...

Thanks for your opinion

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[DROCKINDAHOUSE]

Pesonally, I'm renting an apartment for four years and not thinking twice about it. Your decision to enter the world of real estate should depend upon where you're attending school. For instance, in LA the housing market should remain relatively stable enough for you to view purchasing a home as a long-term investment. However, in smaller markets you may find that your decision will fail to be profitable and that you may be buying a money pit.

 

[buckleman]

I always thought I would rent a place during dental school but I recently came across money that I could use as a down payment on a home near school (death in family). My parents are really pushing this because they think it is a "waste" of money to rent and they are willing to cosign.
I have been working full time for a year and will continue to do so until July so I think I would be able to get approved for something, especially with cosigners.
I have heard of some people getting a three bedroom place and renting two rooms and basically those roommates paying the mortgage. This is the route I would probably like to take.

I'm wondering if you all could give your two cents as to how buying a place would affect me getting student loans (in state). (side note, I have no debt right now and great credit) And other negative things about owning a place (beside upkeep and taxes). With the market today I could buy cheap and hopefully not lose any money come four years later and I want to sell. I am from this area so I could possibly rent it out...

Thanks for your opinion

Well, really you need to give more information to attend your question. For example, if you live in California and going to attend UCSF dental, then I would say buy the house or apartment because then you are able to pay in-state tuition for the next 3 years, which is about 13,000 dollars less than out-of-state. Plus, you'll have a nice apartment in a very nice city. (My opinion)

Give more information and I'll give feedback.

 

[DrReo]

It's a buyer's market and a good time to buy. There are a lot of factors you should consider (I'm considering the same, especially if I do decide to do HPSP)... How difficult will it be to sell the property in four years- or is this a location you'd like to practice? If you buy an older house, things will break and need to be replaced($$$$$$). This needs to be calculated in. How much are property taxes, etc.

To be honest, it really depends on the house you can get, how old it is, location, and how easy of a sell it will be... Remember in a 30 year loan, the first years are simiply interest. If you make an extra payment each year for 19 years on a 30 yr mortgage, the house is paid off 11 years early...

So a lot of the cash you put it can be wasted as just as it was rent. The house must be in a promising area where its value should increase and who knows what the housing marked will be like in 2013. It could be a worthwhile investment, though.

 

[dentalmagnet]

IMO, everyone is saying it's a buyers market. That is not a good thing if you plan on going to dental school for 4 yrs and then moving away. What if you can't sell? Would you rent it out? How would you handle the repairs living in another city? I would just go through the pros/cons over and over.

 

[nydds25]

If this is NYU and you can get an apt or a co-op for a mil or so, I would definitely do it. It will be a great investment.

 

[DROCKINDAHOUSE]

If this is NYU and you can get an apt or a co-op for a mil or so, I would definitely do it. It will be a great investment.

Who wants to make that type of investment BEFORE going to dental school?

 

[Piston]

people with foresight would buy right now, it is a buyers market, but markets turn over and turn into sellers markets within a year or two. Its a cycle that rarely lasts for 4 years, and theres alot of hope for the american markets right now with the new president and all. Realistically if you look at it, even though the prices of most things are dropping during the recession, rent remains recession proof in big cities. So logically why would you pay the same amount of rent even though the value of the property has decreased dramatically. In times like this you should buy if that is an option for you. You dont have to sell it immediately after you leave dental school, if the market value is low, you can rent it out and the rent will afford your mortgage payments. As soon as the value increases you sell it. And in real estate if you have patience, in most cases you will see a return on your investments. And that return can be significant, the risk outweighs the reward right now.

 

[PikPocket]

If you have the ability to buy now I definitely would. Its really a no brain'er, rates are at an all time low, provided you have the credit score and the down payment. Like others have said its a buyers market which will return in time and if that time does not coincide with your dental school career, so be it you can either sell or rent but more importantly you will have protected your capital and more than likely increased it.

 

[C_BryantDDS]

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