My husband (28) and I (31F) are in the market to move. In the ridiculous amount of time I've spent researching places to rent, I've stumbled upon a few things that make it seem like buying a house and paying off the loan would be cheaper in the long run. A few things to note:
1) Hubby is a veteran, so we would get a low interest loan with $0 down payment.
2) We are looking to have a friend move in as a roommate for a few years.
3) We are fine with a mobile/manufactured home. I've got my eye on a 4/2 for $75k. (There are similar priced properties in the area as well.)
4) We live in FL.
5) We have tentative plans to move out of the area in a few years' time (3-5).
6) I'm not looking to make a profit, just to save money in the long run.
So here's what I've worked out (and please tell me if I'm missing something or overlooking a cost):
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The rent on 3x2 houses/apts is averaging about $1600/mo for the area. This isn't even counting most utilities. If we rented for just three years, that would be 57600 (and that's only if rent didn't go up, which it will.)
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Financing a $75k manufactured home for a 30 year loan comes out to about $358/mo in loan payments and $665/mo in lot rent (obviously that varies based on location). So $1023/mo. ($36828 for the same 3 years)
-If we decide to sell after only 3 years, (I used an online mortgage payoff calculator for this part), the lender would ask for around $70,874 for payoff. If we're lucky, the home has appreciated and maybe we make back some of our costs.
-Even in the very likely event it has depreciated 15% over 3 years, we might be able to sell for around $63750. We'd owe the lender $7124.
I'm aware these costs don't include utilities, insurance, selling fees, etc. However, my rental estimate doesn't include deposit, utilities, move in costs, and pet fees either. Id like to think a first and last month's rent upfront that we were already going to pay would be more than the fees on a mobile home.
But then again that's why I bring this hypothetical to you. Hit me with some reality. What am I missing?
Submitted February 04, 2021 at 06:19AM by Gloriousxchaos https://ift.tt/3aw2T5T
