We transfer every 3yrs. We are this time, moving to Cape Coral Florida. We found a home to rent, that is all inclusive(down to the utensils) for really cheap. We would be able to save a lot of money if we were to rent for 3yrs. Now, my only concern is that if we don't buy into the low market, we may never make our money back that we lost, selling in one. I am just nervous that if we do buy in the #1 ranked foreclosed city in the Nation.....we will not be sitting pretty in 3 yrs. How long does it take to recover from something like this? I know that area was hit hard, starting in 05. However, the prices are still declining. Should i rent or should i buy? What would be a financially smart move?
If we buy, we will still be able to save, as long as the house isn't a fixer upper. If we rent we could save a min. of 1k a mth.(that is without trying) And not living in a dump either, the houses we are looking to rent are ones we would def. buy. I am confused!f
If you can find a house to rent as cheaply as it sounds, and it's as nice as it sounds - I would go that route - and SAVE, SAVE, SAVE my money for the next time. You're only thinking about housing prices - in Florida, insurance is pretty expensive, too. It sounds like you have an excellent plan to come up with a GREAT downpayment (and then, lower mortgage) for the next house.... PLUS, I do think the prices there haven't quite stabilized, so I would - at this point in time - rent....
Posts: 3715 | Location: Northern Virginia, USA | Registered: May 29, 2003
Oh... one of my favorite places, Sanibel Island..just off the coast of Ft. Myers,Cape Coral..where the water is sky blue!
Look up "Plantation Resort at Sanibel" - maybe you could find something on the Island (lots of residential homes), shops, restaurants, dolphin cruises, etc. I would enjoy that experience and possibly treat yourself to rent one of their beach villas for a week.
Then....Maybe arrange a month to month with one of these sellers/landlords you are talking to to get settled and take your time shopping around. As you said find a home furnished, so you don't have to move your belongings until you find a home.
I would suggest buying by the end of the year/early next year, and if you can get on the water, with access to the gulf, that would be a plus.
Congratulations on the sale of your home, and remember to not make a committment on a new place... until you home is closed...for sure.
If you need any more search sites or questions, feel free to pm me.
No body has a crystal ball for the housing market....but I can tell you that the last housing downturn I experienced back in the early 80's took about 5 years in the area I was living in for housing prices to start rebounding. Personally I don't think I'd buy if I was only planning on staying for three years in this market.
Yes you can find some deals, and yes they may offset the loss you took on your current home, but that home may take longer then 3 years to turn around and may even decline in price further over the short term. Risky business, if you were staying for the long term, I'd say go for it and get a deal and ride out the storm, but for only 3 years I personally would rent in this market.
I agree with almost everyone here- just rent for the next three years and save, save, save every penny to make up for the loss you're taking now. It's a declining market- with a LOT of empty homes that will still need to sell even IF prices correct in three years. If I were in your shoes, I would get situated in the fabulous rental and then enjoy the next three years of my stay! Good luck!!
Here is another side too though. Whatever we plan to buy, we plan on holding onto(hopefully) if the price is right. We plan to retire down there in 11y. WE'll see. I appreciate all your advice.
I am in Florida in the Panhandle, here the properties are taking such a tumble you wouldn't believe. This is something that is not going to go away within the next 5 years or longer, There are many properties for sale and the owners are still holding on to the prices, I guess unless you are forced to sell they are not budging. In your position,I wouldn't buy at this time, let it go for the next three years, nothing is going to make this housing bust rebound so quickly that it would not allow you to make some changes in the future if you need to.
I am very pro buying and optimistic about the RE market... All that said, I would highly recommend that you rent in your situation. Three years is too short a time. Eleven years is a long time, too. Your plans may change.
This message has been edited. Last edited by: Meischa,
Posts: 1004 | Location: Southern CA (Southbay) | Registered: Nov 08, 2005
Well you can have somewhat concrete answer by doing the math, but since everyone I meet looks at me like a bug for suggesting anything to do with "math" I'll make it simpler for you:
The likelihood of overcoming the expense of maintenance, purchase and sale when a markets appreciation rate falls below the rate of inflation is pretty tough, assuming you rent for an equivalent price. If you rent cheaper it is much more of a no brainer (especially if you aren't in a high tax bracket).
If you were in it for the long haul, I would say buy. But seeing how it's short term, I'm not sure it would be a wise investment. I think you would be better to take a wait and see what the market does attitude.
From your situation, I'd have to agree with the others, rent for now. I would find an inexpensive place to live and sock away as much money as I could to purchase something in the future. Good luck to you!
Posts: 1126 | Location: usa | Registered: Sep 28, 2002
Having recently left Florida for a job transfer, I would say don't buy in Florida. Rent chealpy and save your money for a nice home wherever you end up going to in 3 years.
Renter's insurance is a darn sight cheaper than homeowners insurance, especially in an area that's already been hard hit by hurricanes. And, if you buy during hurricane season, you might just have a pile of trouble even getting homeowner's insurance.
When we moved to FL in 1999, there had been very few bad hurricanse for years, but none of the better quality companies would sell insurance to during hurrican season - and we were halfway between coasts.
My MIL is still in S. FL, and her insurance has more than tripled in the last couple of years.
katie
Posts: 40 | Location: south carolina | Registered: Jan 09, 2005
You mother in law needs to shop around for a better rate. When my major carrier tried to pull the same thing on me after the three hurricanes, I started to shop around.I live on bay water on the west coast of Florida and I now pay an increase of about $300 dollars.
On the insurance part-for homeowners(through USAA)-if we buy newer than 2000....it will be cheaper than what we pay now! That is right. I dont' know how they figure..but it is about 300/yr cheaper. That is with the added flood ins. Taxes for us will be cheaper down there too(supposively, we will pay 1% of the purchase price in taxes). For Tax purposes when it comes to filing, I can't figure out how much a mortgage affects how much we get back. I know I claim the interest paid, but I think we got like 1k more w/ a house, than without. ?!?! How much cheaper can houses get in Cape Coral? Their market plummited in 2005. It is 2008,and 300k homes are now on the market for 150k. hmmm...I don't see it going down anymore. I know that if we do buy, we have to put at least 10% down b/c we are buying in a "declining" market. That area(lee county) I think was ranked #1 in Foreclosures. 10% is no biggie. I can swing that. If the house we (might) buy is worth less than paid when we go to sell, well...then we won't sell it. All the reg. homeowners trying to sell(not a short sale or foreclosure) their homes are priced in the 300-400k price range for the style home we are looking at. I just don't know. Part of me says-awwwee what the *#&*.
REL - my MIL is in the Ft Lauderdale area, had over $60K in damages from hurricane Wilma, so recent large claim, and has shopped around, but not many companies selling insurance in FL right now. She's between a rock and a hard place at the moment.
I looked up the predictions for hurricanes for this season. They just increased the numbers in April. I know hurricanes aren't the only thing, but the season is about to begin. yuck.
katie
Posts: 40 | Location: south carolina | Registered: Jan 09, 2005
Florida insurance varies insurance broker to insurance broker (commissions). Keep shopping. if you pm me with a email address, I will help research for you by pulling out names of insurors on some of my closed files, as soon as I get time. The problem may be the fact that she had a large claim.... but we'll see.
REL Flood insurance in Fl is offered by the State and you buy it thru your Ins. agent, the prices are pretty steady about 350-375 per year. the other insurance, now that has really become a problem, and I am sure that you are well aware of that fact. Any where in Fl the homeowners insurance has double or triple since 2004. and you also know the battles that the State has with the Ins. companies trying to raise rates yearly. and what they have been doing like putting a freeze. Many Insurers have left Fl. and also many retirees that cannot longer afford these increases. Overall in Fl the property values are down, and the Ins. and taxes are up. There is no way of escaping those facts. As a realtor I can see you encouraging people to buy disregarding the circumstances. In the case of Florida bound, it would behove her to wait and see, rather than plunge.
I'm just curious. You say you relocate every three years so why bother with buying a home to just have to turn around and sell it again (if you CAN sell it). I'd rent, no worries.
Posts: 188 | Location: MO | Registered: Nov 30, 2002
I thought you lived in Florida? Recent bills passed during the second week of april protecting consumers from insurance rate hikes. The governor has actually frozen ability of some insurance companies who are not complying with the new laws. We have new property tax laws as well. Things are better here..in that department.
