weslmt
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Location: Tennessee
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| Small House vs Apartment |
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OK, I am moving to knoxville TN in the winter. I'm 20 and will be on my own for the first time.
I think I have saved enough money for a good saftey net, but im not sure if I need to buy or rent. I've looked at some small houses that are between $50,000-80,000 and an average apartment in knox is around 450.
Comments
Questions
Concerns
Let me know
Thx
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Tue Sep 16, 2008 7:44 pm |
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No-Brainer
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It depends on how industrious you are. Apartment living is pretty restrictive, but with my own house I remodeled a downstairs room to do workshops in that bring me extra money from training people that enter my side business. That's hard to justify when it's not your own place.
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Wed Sep 17, 2008 2:49 pm |
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docchamberlin
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Location: knoxville, tn
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I live in Knoxville and know the market pretty well. I moved here at age 24 and this is the strategy that worked for me:
I rented a two bedroom apartment. As I made friends I found a roommate to split rent with me. Once my lease ran out I then purchased a house and the roommate came with me and rented from me. My mortgage was $1000 a month and he paid me $450 (which included his utilities). If you can find a roommate while purchasing a house, this is the best way to reach a sizeable equity at low cost to yourself. I would recommend having a 20% down payment before buying a home for all sorts of reasons. ie. your interest rate will be best, no pmi, no high interest second mortgage, and no chance of some gimmicky baloon mortgage or ARM. I'm now 31 and have bought and sold 2 homes and currently rent until I find my next investment/home. The real estate market in Knoxville is still pretty good and you can still make a buck with the right property. (I just sold a home yesterday with sizable appreciation over 3 yrs) I do agree with the other contributor that it is best to rent awhile until you know the market better. ALWAYS treat your home as an investment. Hope this helps. Knoxville is a great place to live. Low unemployment and low cost of living....and no state income tax! You'll like it here. Good luck.
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Tue Sep 23, 2008 7:15 pm |
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donnieyen
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| hi |
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i prefer small house
as in my coutnry most house is freehold as
for apartment is diferent
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Thu Jan 08, 2009 11:21 pm |
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jodi
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If you are planning on living TN for long time, then buy a house. It is an investment too. You can sell it for a higher value if you don't want the house anymore.
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Sun Feb 01, 2009 6:00 am |
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Doublebase
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I usually say buy vs rent. Except in some circumstances. If you only plan on being there a year or two then maybe it would be better for you to just rent, build up your credit score, and save money. I would need more information to better answer this. Good luck.
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Mon Feb 02, 2009 6:18 pm |
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littleroc02us
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My suggestion would be to rent the least expensive apartment for a year. The steps below should only take a year at the most depending on how much debt you have.
1. Emergency fund in place first of $1000.
2. Second pay off your debt from smallest to largest.
3. Save up for a 20% down payment on a house.
4. Buy a house where the mortgage is no more than 30% of your net monthly income.
This process will put you in a powerful position financially. Wow! What I wouldn't give to be in your posiition at your age.
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Tue Feb 10, 2009 6:57 pm |
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ukey
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ur own calculation should play a more important part than whether to rent or buy.
While I support buying, its still a long term commitment that may impact any short term decision that you might have.
In my home country, I desperately want to buy a government subsidized flat, but the price is still too high for the moment, and the price is set to come down in the immediate future. So my choice is to rent, rather than staying with my parents.
Once the price reach a comfortable level for my wife and I to live comfortably on our operating income, we will buy. We are living at basic level now, as the rental of $1,500 eats into our other plans, while if I purchase now, it would be more like $600. Still, in our opinioin its worth it, as waiting 6 months allows us to get used to living at a lower level, and allow us to reduce our installments to about $500. It will help in our cash flow and financial management in the long term.
Whats your calculation?
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Thu Feb 12, 2009 7:00 am |
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maxmechgroup
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Hello
As par my suggestion small house is really good to bye compare to apartment.so purchase a small house is really good for u.
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Wed Aug 12, 2009 11:24 am |
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Moneybagz
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I really don't think it should be up to us whether you want to live in a small house or apartment. However, if you really want my opinion I'll suggest a small house. In apartments you're too near your neighbors and you hear everything.
I always prefer buy vs rent. So, if you want my opinion get a small house. However, $450 is pretty reasonable and you might wanna look into that.
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Fri Aug 14, 2009 8:08 pm |
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Offshore-Wealth.com
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| RENT OR OWN IS AGE OLD QUESTION |
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Interesting,
There are many issues to consider, but I would not purchase a home for another year or so as I don't see the bottom of market yet, not even close, especially in some areas. Of course, picking up a short sale or foreclosure property can absorb the potential further depreciation, but with foreclosures up 7% this month, and the worse to come with out of control unemployment in many areas, you are young, rent is my best advice.
In uncertain economic times like these, you never know when your job will be eliminated with all the downsizing, so unless you are in a rock solid industry and a rock solid company, you may find yourself having to move to another area, especially in this economic mess we are in. Again, rent, the rate quoted is far less than any mortgage payment and taxes, probably half the price to rent over purchase of an $80K home, so think long and hard about it before you decide to purchase.
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Sat Aug 15, 2009 1:39 am |
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Sime
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If they have thick walls and are spacious they might be worth going for.
There are some gorgeous reasonably priced apartments around, with balconies and some roof terraces.
So noise and accessibility are your only concerns. So providing you can overcome those obstacles an apartment could be ideal and a money saver.
Not all countries can afford... a lavish monarchy.
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Sat Aug 15, 2009 3:07 pm |
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shubh
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According to new property tax laws, the owner of a home appraised at $125,000 will pay $768.75 instead of the $878.13 required under the old rate. Policy & Communications Department facilitates activities related to administration - council relations, historic preservation, major capital investment projects, and public input processes for city projects and services, especially in the downtown area and adjacent neighborhoods.
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Sun Aug 16, 2009 11:40 am |
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sweethome
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I guess it is much better to buy than rent coz you will gonna spend more money in rental wherein you can have the house itself and whatever happens you can always sell it and its good investment too for all your hardwork
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Fri Sep 18, 2009 4:52 pm |
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