Anyone buying instead of renting?

[DeltaTauKyle]

I'm looking at the option of buying vs. renting.  Is anyone else contemplating this?  Have any of the older students gone this route?  I've crunched the numbers, and it seems to be a financially wise decision.  However, any advice would be great.

Thanks!

[be10dwn]

We bought a house in Fayetteville instead of renting.  It is such a hot market right now there that it makes a lot of sense for us.  The house we bought sold for 97,000 2 years ago and we're buying it for 129.  That's like 30% in two years.  And even if we don't make money on it it's better than throwing away money renting.

[1styearlawstudent]

I am trying to find the right property to purchase instead of renting also. It all depends on whether I find the RIGHT property and can close prior to the start of school.  You have to approach the purchase like any other investment. If it doesn't make financials sense, then just rent until you find something that does. It sounds like the gentlemen that is paying PITI while a 1L chose a property that needed renovations, I don't think that is a wise choice considering the time constraints you will have while in school. I am looking at a few duplexes where the rental income will offset the mortgage. And if not a small 2BA/1BS townhouse or  single family detached home. I intend on renting the property out when I finish law school and move on so as long as the cost and terms are right it makes sense for me.

[Bhoutros]

yes - we plan to buy a place.  The payment will be lower than my current rent.  It is a long story, but I rent and my hubby lives 1600 miles away where we have a house.  We are calling my law school house a "2nd Home" and if we sell it in 3 years for what we buy it for the tax advantages will be worth it.  If we can't sell it we may rent it or keep it as a vacation home, and it is in an area we like.

Before law school I worked in mortgage banking/real estate, so I think we have a good idea of the risks involved.

[DeltaTauKyle]

Good Lord!  1886 sq ft for under 240,000?

The condos in boston I'm looking at are $250k for 650 sq ft.  Ugh, city prices

[othius]

My wife and I will be closing on our new home in 8 days. We decided to buy because the market around the school is really hot and it's next to impossible for it to go down.

The house is 3 miles from my school, so I'll be biking.

In my opinion it all depends upon how much rent is compared to a mortgage?  Also for us, we had about 30K invested that made it impossible to get gov't grants. By sticking the $ in a house it's not counted against you. Next year with only one salary we should be sitting pretty nicely come FAFSA time.

To me it really depends on the market. Buffalo, NY... Rent. The prices are low but they probably won't rise.. and you can rent a nice place for dirt cheap.

My 2 yen.

[Duner]

buying is way better than renting. I bought my house before i started school. I rent out a room and it basically costs me 500/month to own a home 2 miles from campus. The appreciation on the house should cover my law school debt when if i sell it after graduation. But i'll probably rent it b/c the people in my neighborhood renting the homes are getting 50% more than the mortgage each month...maybe i'll be a slumlord.

[clark40]

A school is an institution designed for the teaching of students (or "pupils") under the supervision of teachers. Most countries have systems of formal education, which is commonly compulsory. In these systems, students progress through a series of schools. The names for these schools vary by country (discussed in the Regional section below), but generally include primary school for young children and secondary school for teenagers who have completed primary education

testking 640-553 | 640-802 | 640-822 | 640-816

[Thane Messinger]

I'm looking at the option of buying vs. renting.  Is anyone else contemplating this?  Have any of the older students gone this route?  I've crunched the numbers, and it seems to be a financially wise decision.  However, any advice would be great.

This can be a great move, with a few serious caveats: 

Yes, location is a very serious qualifier.  Prices have fallen in Boston, and elsewhere, but even so prices are borderline exorbitant in most coastal cities, minus Florida and now the Gulf.  (I got in trouble in Boston with my bad attitude--imagine that!--when I was appalled at how expensive most homes were for what I considered to be far less value than elsewhere in the country.  Sure, there were great properties in Newton and Sudbury and Weston and hidden away in every town, but much of the living was really rather crowded and noisy and dirty, all at high prices.) 

More importantly, are you absolutely, positively going to stay in Boston?  If so, maybe.  If not, beware.  If the market improves, then you'll of course do well in being able to sell at a profit, or at least (minus costs), even.  If the market falls, however, you can find yourself stuck.  Because of my reaction I decided not to even consider buying, and I'm glad I did.  Now, it would be an easier case to make for buying.

Finally, unless you're buying an apartment with zero maintenance, the last thing you need to worry about in your first year is a busted boiler, leaky roof, and so on.  If your spouse or significant other will take care of that, okay, but don't sign on for a troublesome property (especially if you  have to because of cost).  Your first priority in law school has to be law school.