Bob

Selling a house can be bloody expensive, property taxes and all the other hidden costs that are involved that you wouldn't pay if you rented, can't talk for houston, but rubbish collection, water/waste etc are all rather expensive...and all the hassle of maintaining a place, AC/Heater etc...much easier to rent for say 6 months and use that time to find out who to use for services from people before you need them, and to find out which areas you will like to live in and then snoop them out in the early morning/evening to see what the real traffic situation is actually like, because commuting can be a major mare.

It'll probably be easier and cheaper to keep your stuff in storage during that time and get a furnished apartment.

Oh, and not having any credit history makes it more of a hassle getting your utilities hooked up such as phone/cable/internet/electricity because they'll want a large deposit...and they'll more likely accommodate a renter who has a smaller out going expense...

Dan725

Not to mention the fees charged by the robbing realtors over here. Not 2% like the UK, but a whopping 6%, the utterly ripping b@@@@@@rds.

vegas

I think it is a much better system. 3% to your agent and 3% to the buyers agent. sometimes the same but mine offered 5% if this happened. You have dozens of realtors trying to sell your house instead of the British system where they get your commitment stick a photo in the window then do f*** all.

TruBrit

we own two properties inside the loop and have just paid the annual property taxes which are due the end of this month (nicely timed just after christmas)and combined it mounted close to a six figure sum

Lynne

Renting first is a good idea, it could be costly to just buy first then realize you are in a bad area, or just don't like it. The company my husband worked for rented us an apartment when we first came here and we spent weekends just driving around looking at areas and also talking to people that had lived here a long time sussing out neighborhoods.

For some people renting is ideal. When we lived in the apartment (back in 1995) the rent was $599.00 a month for a two bedroom, two bathroom apartment. The only thing we had to pay on top of that was for our phone. Everything else was included. Of course there is the added advantage that when the windows leaked we just called the office and they replaced the window and the carpet.

For us apartment living was not ideal. Because of the nature of industry here people are moving in and out of apartments on a weekly basis. Most of the big companies here have permanent leases for apartments so when they bring people in on a month contract it is cheaper to put them in an apartment than in a hotel.

Buying a house is a big gamble as you can never be sure what the housing market will do, but if you plan on staying put for a long time it is worth considering. Owning your own home does have tax advantages in that you can claim your property tax and interest against your taxes.

When loooking for an apartment, check the lease. Most apartment complex's around here will lease for six months then renew month to month, but some places have a set term and have high penalties if you pull out before the end of the term or don't give so many months notice.

scrubbedexpat099

I have never paid more than 1.25% in the UK, and then I thought I was getting ripped off.

The normal where I am is 7%. I am sure it can not last. But we are going off on a tangent.

vegas

pay peanuts get monkeys

TruBrit

6% here.... 3% to the buying agent and 3% to the selling agent and the seller pays it all and so that would be good news to the op as he would for all intense and purposes be a first time buyer here.

TruBrit

hmm not so sure about that ....we pay quite a lot more in commission here in the usa and there are quite a few monkeys about when it comes to realtors coz i've dealt with some of them

BritGuyTN

agreed - i've come across many who are lazy, incompetent or uninformed, some a combination of all three....

depending on house prices in your area, it may be worth spending a few hours getting your real estate license and saving yourself the 2-3% listing realtor commission

ScousePete

www.zillow.com

BritGuyTN

is a bit crap

its undervalues my primary residence by 30% and overvalues one of my rental properties by 500% (no joke)

i think they are actually being investigated right now

http://680homes.blogspot.com/2006/11...zillowcom.html

Bob

It's still a bit of fun to see the groupings of sales in your area, it ain't so great with house prices, but it is consistent, so if you know what something went for, you can then adjust for it....houses on our street are around $200-300K under valued.

BritGuyTN

i do like the site actually

but seriously one of my rental properties is valued by zillow at $600k and next to it is another rental property that is valued at $130k (about right)

Its pretty funny and going off that it makes my networth look great!

Biscuits

I have done further research to give you the exact picture.

http://www.zillow.com/HomeDetails.htm?zprop=29389145

The home is renting for $1,700 or is also for sale for $525,000. It is not in the central part of Old Enfield where the $800,000 homes mingle with the $3,000,000 mansions but it is in a very good area, nevertheless. The asking price is fair and many would pay nearly that amount to teardown the home for the .25 acres.

Home Price = $525,000
Down Payment = $105,000
Monthly Note = $2,451
Appraised Value = $371,000
Monthly Tax = $772 (paid annually)
Monthly Insurance = $150

Monthly cost to OWN = $3,373 (with $105,000 down)
Monthly cost to RENT = $1,700

For the same monthly expenditure, is it better to rent a house in a desirable area (i.e. good schools, safe, location to work, etc.) or to own one in a marginal neighborhood? If it were me, and I were going to live in the home in question, I would take the quality of life over the appriciation gained by living in a lesser area. Answer this question honestly and you will see why people rent (myself NOT included ).