People keep sayin why, rent, buy a house....someone explain
12-19-2004, 03:56 PM
#1
OK, so for the past while i've been lookin to rent a house with my bro and probably a couple other people. Through out it all and even before people have been sayin why rent, buy.
And that does sound like a pretty sound idea. But i know jack about it, or how it'd all go down.
I'd like to think i've got pretty decent credit n stuff although i do have a student loan and stuff still.
None the less, what can you guys all tell me about this? What all is involved etc. What should i know or be careful of? What do i even have to do?
And that does sound like a pretty sound idea. But i know jack about it, or how it'd all go down.
I'd like to think i've got pretty decent credit n stuff although i do have a student loan and stuff still.
None the less, what can you guys all tell me about this? What all is involved etc. What should i know or be careful of? What do i even have to do?
12-19-2004, 04:12 PM
#2
A Realtor will gladly walk you through all the details you should know. If you do end up wanting to buy a house...get a house inspector to check it out...and don't use the one the real estate company offers...drop $200-300 and hire an outside inspector. He'll find all the crap that's not right with a house so you know exactly what you're buying.
That being said...buying a house with friends or other people isn't wise IMO. To many problems...I'm gonna go against the grain here and suggest you rent a house for a while 'till you know how it is living with these guys.
That being said...buying a house with friends or other people isn't wise IMO. To many problems...I'm gonna go against the grain here and suggest you rent a house for a while 'till you know how it is living with these guys.
12-19-2004, 04:29 PM
#3
Guest
Posts: n/a
If you can get the place based only on your income then great. Perhaps you can do up a plan for the bank if you have rental income also (if you have a basement suite or room mates). It sure beats throwing money away on rent as whatever you pay off on the loan is yours when you sell the house (equity), minus interest of course.
12-19-2004, 04:30 PM
#4
50 Watt CAFz'r
Join Date: Aug 2004
Posts: 302
when you rent a house...you pay lets say 1000$ a month all included right? after living there for 1 year your going to say good bye to 12 grand, theres no way your going to get that 12 g's back but if you were to buy a house with a down payment and pay your mortgage, when you want to move you can sell your house and get your money back....and since realesate is a pretty solid investment and depending on how the market is, you can get your money back..
12-19-2004, 04:42 PM
#5
500 Watt CAFz'r
Join Date: Nov 2004
Posts: 779
Originally posted by pusnboob:
A Realtor will gladly walk you through all the details you should know. If you do end up wanting to buy a house...get a house inspector to check it out...and don't use the one the real estate company offers...drop $200-300 and hire an outside inspector. He'll find all the crap that's not right with a house so you know exactly what you're buying.
That being said...buying a house with friends or other people isn't wise IMO. To many problems...I'm gonna go against the grain here and suggest you rent a house for a while 'till you know how it is living with these guys.
A Realtor will gladly walk you through all the details you should know. If you do end up wanting to buy a house...get a house inspector to check it out...and don't use the one the real estate company offers...drop $200-300 and hire an outside inspector. He'll find all the crap that's not right with a house so you know exactly what you're buying.
That being said...buying a house with friends or other people isn't wise IMO. To many problems...I'm gonna go against the grain here and suggest you rent a house for a while 'till you know how it is living with these guys.
12-19-2004, 04:57 PM
#6
I've thought abotu that. I'm stayin in the city for a while cause i just got a pretty decent job that i can only move up in, and another guy is moving this way for a pretty solid job (we've lived together before (2years), grew up together, so long as he says he's in for the long hall, i'll feel pretty safe. Third guy is my brother, who i've been renting with for 3 years or so, so as long as he doesn't have any big plans which we're discussing. Three of us would probably be enough to cover things assuming we're around 10-1200ish + util.
There's other people that wanna move in with us, both guys we've grown up with and that we've lived with before. Nice thing is...it all sounds like a solid investment. I unfortunately wouldn't be able to cover a 10-1200 mortgage by myself (yet). But if i buy could possibly set my own price a lil, after all i'm footing the bill here, so if their portion is a lil or tad bit bigger than mine (not that they need to know) it wouldn't hurt.
Likewise the market is generally rediculous in edmonton here as far as finding places to rent, it's pretty banging!
So the first step is pretty well going to the bank and see'n what they'll put up for me, correct?
There's other people that wanna move in with us, both guys we've grown up with and that we've lived with before. Nice thing is...it all sounds like a solid investment. I unfortunately wouldn't be able to cover a 10-1200 mortgage by myself (yet). But if i buy could possibly set my own price a lil, after all i'm footing the bill here, so if their portion is a lil or tad bit bigger than mine (not that they need to know) it wouldn't hurt.
Likewise the market is generally rediculous in edmonton here as far as finding places to rent, it's pretty banging!
So the first step is pretty well going to the bank and see'n what they'll put up for me, correct?
12-19-2004, 05:36 PM
#7
1000 Watt CAFz'r
Join Date: Nov 2000
Posts: 1,020
Ya, go to the bank and that will pretty much tell you where to go from there. Even if you gotta live off KD for 2 years, buying your own place might be better in the long run, and maybe you oculd rent a room or 2 to your buddies?
12-19-2004, 06:02 PM
#8
500 Watt CAFz'r
Join Date: Jan 2003
Posts: 575
To add to what everyone else has said, property value is pretty consistantly rising, so it's safe to say that if you keep the house in good condition, you may even be able to get more than your money back when you sell it (depending on time, neighbours, etc.)
I don't know about buying a house w/ 3-4 guys, though ...
I don't know about buying a house w/ 3-4 guys, though ...
12-19-2004, 06:08 PM
#9
to clarify if it came out wrong, which apparenlty it did.
I'd buy it by myself. Assuming the bank says yes lol.
Then i know at least 2 of the people would be in for the long hall, if another wants in, thats fine, cheaper for the rest of them. I'd basically gather rent from then to cover whatever the montly cost is.
I'd buy it by myself. Assuming the bank says yes lol.
Then i know at least 2 of the people would be in for the long hall, if another wants in, thats fine, cheaper for the rest of them. I'd basically gather rent from then to cover whatever the montly cost is.
12-19-2004, 07:04 PM
#10
1000 Watt CAFz'r
Join Date: Sep 2001
Posts: 1,120
Go into the bank with a letter from each of your buddies and brother committing to rent from you if you buy a house.
Then find a house with a basement suite, and rent that out separately, and rent out the other bedrooms to your buds in your suite upstairs.
Try and find a home close to main routes, on bus routes close to university or college, but off the main drag so it's quiet. Make sure it's got plenty of parking, especially if the suite is unauthorized in the land use bylaw, otherwise the city might shut down the suite if the neighbors complain about lots of cars clogging up the parking on the street, and you'll loose some of your income....not a good thing. (Better yet find a home with suites allowed in the land use bylaw). If it needs some cosmetic renos you could really make some good money on the re-sale if you're handy.
You need at least 5% down which can come from your RRSP's, savings, or gift letter from a relative, this may depend a lot if suites are allowed in the land use bylaw or not.
Find a good mortgage broker specializing in using rental revenue as an income qualifier. You may get more flexibility on terms with the lender if say your dad co-signs for the house, and if the land use bylaw allows secondary suites.
Good Luck!
Then find a house with a basement suite, and rent that out separately, and rent out the other bedrooms to your buds in your suite upstairs.
Try and find a home close to main routes, on bus routes close to university or college, but off the main drag so it's quiet. Make sure it's got plenty of parking, especially if the suite is unauthorized in the land use bylaw, otherwise the city might shut down the suite if the neighbors complain about lots of cars clogging up the parking on the street, and you'll loose some of your income....not a good thing. (Better yet find a home with suites allowed in the land use bylaw). If it needs some cosmetic renos you could really make some good money on the re-sale if you're handy.
You need at least 5% down which can come from your RRSP's, savings, or gift letter from a relative, this may depend a lot if suites are allowed in the land use bylaw or not.
Find a good mortgage broker specializing in using rental revenue as an income qualifier. You may get more flexibility on terms with the lender if say your dad co-signs for the house, and if the land use bylaw allows secondary suites.
Good Luck!
