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When did you all buy your first home? Is it a good idea to buy one while still in school?
When did you buy your first home?
- Thread starter Carly Ess
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Unless you are 1000% certain that you will remain in the same location when you're done school then no, it is almost certainly not advisable to purchase a home. Your external rotations may require you to not live in your house for months at a time and once you graduate, your desire to move may mean that you will have to sell your house quickly. That may or may not be an easy thing to do at that time.
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This question is loaded. There are lots of variables. Where is the house located?? Is it a good neighborhood? Is the economy strong in the community? Are there rental properties nearby? How committed are you to reselling a house after 4 to 5 years? Have you considered keeping the house as a rental property? Will you be able to find a renter? Will you be able to find a buyer?
Lots of questions to answer. Buying a house is a big step. Unless you consider all of the questions above and some I have not asked, I would not do it until you are sure of a stable job.
I had a couple of Optometry classmates buy homes while they were in school. One still lives in the same house....after 9 years and the other kept his as a rental property. Two good decisions, but they thought every detail out.
Good luck,
Dr. Gump
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We bought a house when we moved to Memphis. I can understand 100% why people think this is an incredibly stupid idea, but it was something we wanted to do. It's in a great neighborhood and it was a foreclosure so we got it for an excellent deal. I know we'll have to put it up for sale at least a year before graduation, there are a good number of houses for sale around here and we'll probably have some trouble selling it.. but I'm SO happy we're in a house!!
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This is a decision that should be discussed with your accountant. Staying in a house for such a short period of time is generally an unwise financial move because the purchase and sale of the house can generally involve the payment of:
1) Real estate agents
2) Upkeep of the home while in it
3) Taxes while owning the own
4) Transference taxes upon the sale of the home
5) Closing costs
6) Substantial interest since the overwhelming majority of a mortgage payment in the first number of years is interest
As always, consult your CPA.
lol
no offense, but the answer to your question, if given, will not be credible since the general population constituting these boards do not include mortgage specialists.
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ALWAYS go for a fixed rate so your interest rate doesn't skyrocket. Our mortgage is for 30 years, we wouldn't have been able to afford the payment if it was less than that. Definitely talk to a real estate agent or someone else who has expertise in the field, they'll give you the most help. Our mortgage was through a bank, then it got sold to another company but nothing changed.
and KHE you're absolutely right - most people advise against buying a home unless you plan on being in it for 5+ years.
monumentally bad idea.
is your spouse a stay at home? Is your spouse very handy? if not, get a condo, because the endless repairs, improvements, replacements etc are a pain in the rear when you are established. when you are stressing for finals, or studying for boards you don't need to be up at 2 am trying to find an electrician/plumber/contractor because your furnace broke down, or the roof sprung a leak.
Maintaining the lawn, cleaning the gutters, and all the basic chores need to be done.
You can probably pull it off if you put your mind to it, but from my own experience owning a home during OD school, i suggest that you rent for now, or if you buy, buy a condo so many of the day to day issues are taken care of for you.
my .02
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I spent about 5 years in loan origination before going back to school for pre-reqs. It definatly is not rocket science but there are some things to consider.
First there is the housing market. While you will see some good buys out there, you will have to know that they are good deals because no one is buying right now. So if you do have to sell it, how long will it take and what kind of loss (if any) would you have to take to do it. Like others have said, dont buy unless you are sure you will be working in that area for some time.
If you are sure of this, now is a good time to buy. The market will eventually rebound and the homes value will prob rise. In addition the interest rates are low, and it will probably only go up.
Fixed rate or variable rate? If you have a good credit score 680+, dont accept anything less than a fixed rate. If much lower, consider a loan with a into fixed rate which turns into a variable rate, while concentrating on raising your score so you can refi before the rate changes. There are many things you can do to raise your score, including disputing errors on your report, but you have to know what to do.
Buying a home while in school? I wont be when I start in Aug, but its not like Im not tempted to with the current prices. Others have mentioned the upkeep on the property taking up your time. That is a big reason I wont be buying as is I got out of that industry because of the headaches involved. If I wanted to be a rental property manager I wouldnt have spent the last 2 years taking science classes. Its not right for me, but maybe for someone else. You may do it and make some $, but you are at the mercy of the market so do you want to worry about that and all of the things that an Optom grad has to deal with?
First there is the housing market. While you will see some good buys out there, you will have to know that they are good deals because no one is buying right now. So if you do have to sell it, how long will it take and what kind of loss (if any) would you have to take to do it. Like others have said, dont buy unless you are sure you will be working in that area for some time.
If you are sure of this, now is a good time to buy. The market will eventually rebound and the homes value will prob rise. In addition the interest rates are low, and it will probably only go up.
Fixed rate or variable rate? If you have a good credit score 680+, dont accept anything less than a fixed rate. If much lower, consider a loan with a into fixed rate which turns into a variable rate, while concentrating on raising your score so you can refi before the rate changes. There are many things you can do to raise your score, including disputing errors on your report, but you have to know what to do.
Buying a home while in school? I wont be when I start in Aug, but its not like Im not tempted to with the current prices. Others have mentioned the upkeep on the property taking up your time. That is a big reason I wont be buying as is I got out of that industry because of the headaches involved. If I wanted to be a rental property manager I wouldnt have spent the last 2 years taking science classes. Its not right for me, but maybe for someone else. You may do it and make some $, but you are at the mercy of the market so do you want to worry about that and all of the things that an Optom grad has to deal with?
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