From: richgr@panix.com (Rich Greenberg)
Newsgroups: misc.consumers.house
Subject: Re: Newbie needs help -- house-buying decision
Date: 3 Dec 2004 14:44:59 -0500

In article <559ac2fa.0412031137.133e14e0@posting.google.com>,
S. S.  wrote:
>I need your help in assessing the options for me. Here is the
>background information --
>
>Husband and wife; both 28 years old; no kids; both working full time;
>currently renting a one bedroom apartment in Boston suburb; monthly
>rental slightly over $1,000;
>
>Each month, after tax, car loan, rental, 401k, utility, and other
>misc. expenditures, can save about $3,400. At this rate, in 3 ~ 4
>years, will reach over $200k in saving. At that point, plan to buy a
>house at about 500K ~ 600K (which probably would be average in a good
>Boston suburban town at the time of 2008). Have to wait until that
>time, because (1). do want to put 20% down payment; (2). do want to
>have enough money for overhead housing expenditure and emergency fund.

Wise choice.

>Right now, need to move to a bigger place. So either can rent a
>two-bedroom apartment (monthly rental will be around $1,300), or buy a
>condo or a townhouse at over $200k (once again will put 20% down
>payment) in this area. But given that we plan to buy a single house
>in, let's say, year 2008, we cannot decide whether the benefit is any
>bigger to buy a condo/townhouse and then sell it in the 4th year. If
>renting a two-bedroom for 4 years and holding a two bedroom for 4
>years yield the similar financial outcome, then we'd rather avoid the
>hassle of owning a unit. Can you help me assess the options? Thank you
>very much in advance!

General rule of thumb is that less than 5 yrs, rent.  5 or more, buy.

Like most ROTs, should be taken with a large grain of salt.
Evaluate the costs for both alternatives, not forgetting taxes and
insurance and see which looks better.

-- 
Rich Greenberg N6LRT Marietta, GA, USA richgr atsign panix.com + 1 770 321 6507
Eastern time zone.   I speak for myself & my dogs only.     VM'er since CP-67
Canines:Val, Red & Shasta (RIP),Red, husky                   Owner:Chinook-L
Atlanta Siberian Husky Rescue. www.panix.com/~richgr/   Asst Owner:Sibernet-L