Teach-Me-About-Renting-Vs-Buying Filter: I'm in my mid-20s and have been in my "grown up job" for about a year now, and it's about time to get my own place. What do I need to know, beyond just comparing rent and mortgage payments?
A friend of mine will be back in town this summer to start his job (the offer is already signed and accepted), and we're talking about renting a place together. Given the price of houses and rent (we're talking $80-$115k compared to a median $800 rent) in the suburbs of Milwaukee, it seems like it's worth taking a look at buying.
I know about the NYT calculator
, and with our numbers we get a break-even date of 6-8 years down the road.
-What other expenses do we need to consider? Is there a way to estimate maintenance and other owner-related costs?
-What exactly does the break-even point mean to us? What does the chart tell us about selling in a few year if our situation changes?
-What am I cluefully ignorant about that I should be asking? What sort of fees are involved with buying a house? Links to things for me to read might be helpful here. I know that 2 people buying a house together has its own special legal and social/relational considerations. I'm not asking about that yet.
-Neither of us have lived in traditional rental situations before. He's lived in dorms all through school, and I've lived at home except for one year at a school owned townhouse.
-We're both reasonably handy around the house
-Both of our jobs are pretty stable (as much as one can say that). Should anything change in that regard, I could most likely stay put, while he would most likely need to move out of the city, if not the state.
-My gut feeling is biased against renting, so any explanations about the financial pluses of renting could be helpful.