Good Investment?

[kentuckywildcat]

Advertisement - Members don't see this ad

Paying $500 rent for 36 months = $18,000

$60,000 small house down payment = $12,000
Monthly mortgage = ($250)
Roommate rent payment = $500
Monthly net = +$250

Doesn't it make more sense to purchase a condo/small house vs. renting during PT school? If you have the downpayment funds of course. I understand that there is a lot that goes into purchasing a home, but from a financial point of view, you're making $250 per month vs. paying $500 in rent.

Thoughts?

 

[pt2014mu]

clearly you don't live in california! Wish you could find a house for $60K near a PT school!

 

[Azimuthal]

clearly you don't live in california! Wish you could find a house for $60K near a PT school!

A studio condo near Fresno? lol

 

[nicolej5]

why be tied down to a house if you're only going to be living there temporarily?? House will have much more hidden costs and repairs. I'd go with an apartment. Leave the maintenance issues to management. Plus, in 3 years you won't have to worry about selling a house if you decide to practice elsewhere.

 

[VIllaHJF]

Paying $500 rent for 36 months = $18,000

$60,000 small house down payment = $12,000
Monthly mortgage = ($250)
Roommate rent payment = $500
Monthly net = +$250

Doesn't it make more sense to purchase a condo/small house vs. renting during PT school? If you have the downpayment funds of course. I understand that there is a lot that goes into purchasing a home, but from a financial point of view, you're making $250 per month vs. paying $500 in rent.

Thoughts?

If you could buy a better house it could possibly be a good investment, but probably not a 60k house.
No one will pay 500/mo to live in a crappy house with a roommate when they could pay the same price and split a really nice apartment. (1k/mo apt split two ways=500/mo)

You also did not figure in utilities which will probably be very high (especially electric) in a cheaper house. Size is not the most important factor in determining heating/AC costs.

If you get a nicer house (and no less than 3 bedrooms or you might have a harder time finding a buyer later), and get a roommate or two you still probably wont break even. That said, you will have to look at interest rate, home insurance, and taxes and see how much you would be losing per month. If you lose (pay) 4-500/mo that is cheaper than an apartment and you will be able to get the equity back when you sell the house and possibly profit.

 

[llr89]

Depending on your program, you maybe only be in that area for your year consistently. Lots of clinical placements are spread out around the country, and after the first year or so you probably switch between a semester at school and a semester on clinical.

 

[Litlwarrior08]

Paying $500 rent for 36 months = $18,000

$60,000 small house down payment = $12,000
Monthly mortgage = ($250)
Roommate rent payment = $500
Monthly net = +$250

Doesn't it make more sense to purchase a condo/small house vs. renting during PT school? If you have the downpayment funds of course. I understand that there is a lot that goes into purchasing a home, but from a financial point of view, you're making $250 per month vs. paying $500 in rent.

Thoughts?

I'm PMing you