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I am in the military and moving to Offut AFB, NE in September. I will be stationed there for exactl

  • March 08 2012 - Papillion
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Answers (8)

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Profile picture for the_country_hick
Take a look at the links below. They show how to decide this for yourself. As a general rule it takes longer than your time there to break even buying a house.

"Does it make more sense to buy, or to rent? Here is the way to find out for sure."

"Why rent if you could buy for less money? Valid reasons inside."

"Do low interest rates really make it a good time to buy a house?"

Look at what happens to buying power as interest rates rise. If you have a $500 a month mortgage (only) payment capability here is what happens.

A 30 year $106,000 mortgage costs $493.91 a month at 3.8%.
A 30 year $100,000 mortgage costs $491.94 a month at 4.25%.
A 30 year  $82,000 mortgage costs $491.63 a month at 6.00%
A 30 year  $80,000 mortgage costs $492.57 a month at 6.25%
A 30 year  $69,000 mortgage costs $494.32 a month at 7.75%
A 30 year  $67,000 mortgage costs $491.62 a month at 8.00%
A 30 year  $56,000 mortgage costs $491.44 a month at 10.0%
A 30 year  $48,000 mortgage costs $493.73 a month at 12.0%

Renting the house after you buy is a possibility. The question is what is the vacancy rate in that area? How much would it rent for compared to PITI (Principle, Interest, Taxes, and Insurance) costs? Then if you move away you will have to pay a management company to take care of the house for you.

You also want to figure that 1 month each year will be an empty rental with no income. There is more to consider I can not help you with. It is a possible way to build wealth. It is also a possible way to eat wealth and give you a lot of headaches.

One other thing to consider is that house prices are still falling in most of the country. If you buy now and sell in 4 years at a $10,000 loss (as an example) before realtor fees and selling costs of around 10%when you also look at your PITI costs and potential repairs you may face would you spend more or less by renting a house yourself?

Remember to use an online mortgage calculator and look at the amortization table for the fixed rate mortgage you would get. You can see how much money goes to the bank and how much goes into the house. The first few years almost nothing goes into the house it is almost all interest cost.
  • March 09 2012
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Profile picture for user375658

Thanks Dan.  Right now we save about 1400 a month into retirement account and other savings account.  I think we are just going to end up renting.  We really want to own a home, but have no intention on ever living in NE once we leave.  My wife does not work right now, but she is going back to school.  I think we will just wait until she starts her career that way we can get more house counting on some of her income.  Maybe we will be stationed somewhere we would like to retire.  I only have about 9 years left until I can retire from the military.  I just dont see how it can be worth it after only four years.  After paying closing cost, interest, and selling cost it would eat any profits we made and that would be best case situation.

  • March 10 2012
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Profile picture for user375658
Sorry my question got cut off.  I was wondering if I am there for four years would it be worth it to buy a house?  I am afraid if I sold a house after four years I would basically break even after closing cost x2 and only paying mortgage for around 4 years, and that would be best case scenario.  I could also maybe rent once I left?  It just makes me sick that I may pay 60K in rent.  I know the old rule of thumb is you shouldnt buy unless you plan to live there 4-5 years, but I was wondering if that has changed in recent years.  Omaha's unemployment rate is 4% with the national average about 8%.  Also the midwest housing market seems more stable than most.
  • March 09 2012
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Profile picture for the_country_hick
How long will you8 be stationed there? What did you want to learn here? What was your question? It was cut off originally.
  • March 09 2012
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Profile picture for user375658
Our family income is about 50K a year and we were looking at spending about 135K.  The only debt we have is two car payments, insurance, and cell phones.  What more information can I provide?
  • March 09 2012
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Thank you for your service to our country!  I have 2 sons serving overseas right now.  I work in this area and I would love to help you find a home.  I also can connect you with a good lender who is very familiar with VA loans.  Let me know if I can help.  [phone number deleted by Zillow moderator. Please see our Good Neighbor Policy]
  • March 09 2012
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Let me suggest contacting a Realtor who services this region. You can find them on the professionals tab above. They can assist you with anything you need there. Since they have access to the mls for that region, they are your best bet for assistance. Thanks and Good Luck
  • March 08 2012
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  • March 08 2012
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