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Buy a house or...?

We have a rare opportunity to buy the house we currently live in for $40,000. By the time we've paid on it for 3 years we'll only have to get a mortgage for $24,000. The house is a little smaller than we may need (3 bedroom, we have a roommate, and I'm pregnant) We could have it paid off in 7 years from today. If we have another boy they could share a room, but if we have a girl I know we'll have to move. The question- if you were in a similar situation (and had 2 boys or 2 girls) would you rather stay in a cheap house for 7 years, then move and sell/rent it, or move in 2 years and lose the investment?

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Annabel1809Lee

Asked by Annabel1809Lee at 8:53 AM on Nov. 2, 2010 in Money & Work

Level 17 (3,872 Credits)
Answers (11)
  • You really should not buy a home unless you plan to stay in it at least five years because of all the fees involved in buying it. And in your situation I would wait and see what the sex of the baby is going to be first.
    elizabr

    Answer by elizabr at 8:56 AM on Nov. 2, 2010

  • Why not just buy it now and sell it when you are ready for a bigger house? You don't need to wait for it to be paid off to sell it and it will be great investment.
    shanlaree

    Answer by shanlaree at 8:56 AM on Nov. 2, 2010

  • this is a buyer's market. if you have the opportuniity, do it. will your roommate also be buying? if not, maybe she'll be the one to move in a couple years and even if you have a girl, your kids can have thier own rooms. my 4 year old son and my 1 year old daughter share a room and it's fine. they only use the room to sleep, for the rest of the day they are in common areas of the house. if i had my way, our whole family of 6 would have one bedroom to sleep and the rest of the house open so we can spend more family time. but that's just me. GL
    keisha613

    Answer by keisha613 at 8:57 AM on Nov. 2, 2010

  • I would buy it. Really it sounds like you would have the space you need, your roommate would just need to move on. If you do feel you need to move up, sell the home when you are ready and buy a bigger one.
    scout_mom

    Answer by scout_mom at 9:02 AM on Nov. 2, 2010

  • I agree, that you should never buy a home unless you plan to live in it for more then five years. It wouldn't be a smart investment if you were to just up and sell after you gave birth. Not only is the market not prepared for another house on the market, but you wouldn't be getting the worth of the home when you did try to sell so soon. A home should be a longterm investment and that means through growing family and whatever else. If you can't forsee that, that home is a longterm investment then you shouldn't purchase it. Even if you are getting a bargain and will be able to pay it off in 7 years. There are TONS of homes on the market for the same price you're being offered, and some are even bigger then where you're currently living. If you can afford to buy a home right now then you should look for a home that you'll be calling home for more then 5 years.
    JazzlikeMraz

    Answer by JazzlikeMraz at 9:28 AM on Nov. 2, 2010

  • Definitely buy it - I agree with other posters. For a mortgage that small, I would DIE! So everyone will be cramped for a little bit, but you can save so much money and when it comes time for the kids to be grown up, you can buy an even bigger house and have the money to show for it!
    SweetPieMama24

    Answer by SweetPieMama24 at 9:36 AM on Nov. 2, 2010

  • buy the house...intrest rates are low right now and you can sell it when your ready for a bigger house
    MelSwim7

    Answer by MelSwim7 at 9:36 AM on Nov. 2, 2010

  • It's really up to you, but I will tell you one lesson we've learned repeatedly, the hard way. Any time we say we can "make it work", we end up regretting it and spending more money. Now we're just starting the process of building a house, and we're being greedy on everything. Much bigger lot than we need, much bigger house than we need, more bathrooms than we need, etc. We just bought this house two years ago and we've already outgrown it. I don't want it happening again.
    JulieJacobKyle

    Answer by JulieJacobKyle at 11:31 AM on Nov. 2, 2010

  • I'm going to add something else to my above answer... If I'm understanding this correctly, you have already invested $16,000 into this house through lease to own or something similar, correct? For those saying it would be a bad investment if you were to sell it in less than 5 years, I feel that losing the $16,000 would be worse. Even if you were to buy and sell it within a few months, you would still be able to recoup some of that money back, rather than letting it go and losing it all. We are living in our 3rd house that we have bought, our first 2 we were only in for 3 and 2 years and sold it for well over what we paid. It does depend on what part of the country you live in, but for the most part since you have already invested so much, the smart thing would be to buy it, no matter how long you plan on staying in it.

    shanlaree

    Answer by shanlaree at 11:48 AM on Nov. 2, 2010

  • You have to stay in a house 5-7 years to make back your investment before selling. You have to ask yourself if you'll stay that long, good deal on the house or not.
    HotMama330

    Answer by HotMama330 at 1:05 PM on Nov. 2, 2010

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