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Buys or rent?

I am staying in Iowa for a job for the next 5 years. I pay around 10,000$/year for rent right now. I am looking for a single family house around 180,000. I am not interested in taking loans and have the money to pay full price in cash (don't know if this is wise or not though). Would it be worth it to buy and sell in five years or spend another 50,000+ for rent and avoid the hassle of taxes, closing fees and selling the property?
  • May 13 2013 - Iowa City
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Answers (3)

Check option to get loan... Now days interest rate so low and it will be fixed rate any way so your cash money you could invest in other project. With respect Vitaly Petrov
  • May 30 2013
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IMHO, buying seems like a good idea unless the town is stagnant or declining in population without jobs to support housing. Good luck
  • May 30 2013
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If you are looking to move in 5 years, you are probably better off buying.  I have no idea what the property taxes in your area are, but you are probably still going to come out a little ahead if you are ONLY considering these factors.  If you take into consideration the potential appreciation, the tax deductions you will get from your closing costs and any potential home improvements you make...the purchase is probably a good idea.  Here's another thing to consider;  IF you purchase the home now, then in 5 years decide to keep it as a rental property, you are going to immediately cash flow.  Once you make that change, you will receive nice tax benefits by being able to depreciate the home, and every rental payment you receive is pure profit...and probably a whole lot more than you would make leaving that money in the bank.
  • May 13 2013
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