|
  Dear
Steve,
Due to a federal job offer, I relocated
with my family 15 months ago from New Jersey to North Carolina
after selling our condo and making a good return. Although
I like the job very much, we don't really like this area.
So I plan to take another position in two to three years --
maybe shorter or longer -- in another state. Would it be wise
to buy a home in North Carolina or keep paying rent?
-- Unsettled in N.C.
 Dear
Unsettled,
The uncertainty with your career and your family's apparent
unhappiness with the area seem to immediately skew the equation
in favor of renting. As much as I hate to see money vanishing
into that great rental vacuum, it's apparent that you need to
give yourself maximum flexibility in anticipation of that day
when the right job offer comes along. Renting will give you
that. Leases are short and if you have to pick up and leave
in the middle of one, the most you have to lose, generally,
is your deposit.
From a financial perspective, you'd probably
fare poorly by buying, largely because of all the front-loaded
expenses. The weighty closing costs and agent fees would be
tough for you to recoup in a short span, unless the housing
market is just going crazy where you live, or you found an
incredible bargain.
Not only would you fork out a hefty down payment
and have a mortgage payment, you'd also have to pay interest,
property taxes and homeowners insurance as well, plus you'd
be doing all your own property maintenance. You might also
need to buy a few major appliances for a house and then have
to pay extra to move them when it's time to go. All told,
you might lose as much money as you'd pay in rent or even
more, if you bought a house and then sold it quickly.
Yes, it's true that you are at the mercy of
the landlord on rent increases, and you can't do what you
want to do with your place while in rental housing. It seems
those are relatively minor trade-offs if you're only planning
to be around another year or two.
You might consider putting the money you would
have used for a down payment on a home into a conservative
investment. Practically any kind of return would likely be
higher than what you would have earned (or lost!) from a short-term
home purchase.
I hope you find the right job and the
right habitat. Good luck.
|
