Is it better to rent or buy right now?
$190,000 3 bed, 2 bath, 1580 sq feet
This one is in a great neighborhood, with a great elementary school, but a TOTAL fixer upper.
3 bed, 2 bath, 1085 sq. feet $189,000
This one is in our current neighborhood and is pretty much the norm. Dallas is just soooo expensive, it is out of control. We looked at one house that was 890 sq. feet for $179,000. That is pure craziness.
The American dream tells us that we should own a house. Before we found our new rent house, we debated whether or not this was the right choice for us. Would it be better for us to continue to rent for now, or buy a house? We’ve looked at houses, looked at our options, and decided that for now, it is better for us to rent.
We want to save up a 20% down payment, so that we don’t have to pay P.M.I., and because that’s what Dave Ramsey recommends. Well actually he recommends paying cash for a house, but that is unfortunately unrealistic for us. If you can’t do that, Dave recommends paying 20% and doing a 15 year fixed rate mortgage, and then pay it off early. The interest you pay on a 30 year mortgage is seriously out of control. I’m excited that we are taking it slow and waiting for the right time, but I’m impatient. I want to have my own house and decorate it to my taste! Other factors for us include:
We don’t know how long we want to live here. Don’t get me wrong, we like it here, we just don’t know what the Lord has for us long term.
We don’t want to use our emergency fund for a down payment.
Dallas real estate prices haven’t really gone down at all, and are still really crazy high (in my opinion).
Want to find out if you should rent or buy?
The calculator above is pretty useful.
For discussion: Do you rent or own?
If you own, what made you take the plunge?
Is there anything you wish you had done differently?