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Wise to buy home now in Long Island NY if only going to be there for 3-4 years?

My husband and I don't want to miss the boat with a buyer's market, low interest rates&govt stimulus.  We are tired of paying rent ($1650/mo) and just want to settle in to our own first place.  We don't want to get in over our heads and we want to be able to sell the property when we leave without hassles.  We have 20% to put down, and do we even put all of it down? We hope to update an older home and would like to gain some equity. Is it a good idea?
  • February 07 2009 - Floral Park
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Answers (2)

I've heard from watching too many hours of cable television that it's recommended that if you are buying a home today, plan on holding onto it for at least 5 years if not more.

But if you get an exceptional deal, particularly on a foreclosed home that requires sweat equity (and YOU can do the work) that might well be the exception to the rule.
  • February 07 2009
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your husband and you have obviously taken in way too much brainwashing from REIC advertising...

1. "miss the boat." do you mean the Titanic?
2. wasting money on rent. $1650. Do some quick math. I'm not familiar with tax rates on long island, but I seem to remember them being real high.  1650*12 = 19800 a year. I'm just going to guess $6000 a year for tax/insurance/maintenance, which is probably low. That leaves you 13800 for mortgage payment. That will finance a loan of about $200K. You also lose the use/investment return on your downpayment, etc. but just for rough figures, could you buy a home as nice as what you rent for say maximum $240K?

Now, 3 or 4 years is a very short timeframe. The home would need to go up by maybe 8% over that timeframe for you to break even with sales costs/commissions.

In conclusion, it seems like a huge gamble, and big headache for likely no or negative return.

  • February 07 2009
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