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Author: flybuys Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 886578  
Subject: big decision - need advice Date: 1/27/2002 3:26 AM
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Oh wise Fools, I need some guidance.

DH and I have been living abroad for 2 years, renting an apartment.
It looks like we'll be here at least another 1.5 years, maybe a bit longer before returning to the states.

We live in a beautiful area but the rent is high. While we've enjoyed it, we feel we need to cut down on living expenses.

So we've been talking (and disagreeing) about buying a house vs. moving to a cheaper apartment.

I don't think it makes sense to buy considering we know we're leaving and don't want to keep a house as a rental.

DH thinks we'll save money by purchasing a house.

While our monthly mortage payments would be less per month than what we're paying in rent (assuming we can buy within our budget) my concerns are we have to lay out thousands of dollars for a downpayment (which could be invested instead), and of course closing costs, and unforeseen expenses of owning a home. Plus there's the uncertainty of being able to sell in a reasonable amount of time when we leave here.

DH acknowledges the costs and says even if we consider the costs AND the house depreciates a bit, we'd still come out ahead because (and he starting quoting figures) basically a loss would still be cheaper than paying 1.5 years of rent.

Maybe he's right. I don't know. But assuming he is I told him then I feel we should spend more than we originally budgeted so we can purchase in a really desirable area and have a greater chance of selling the house when we leave (which of course means more downpayment, higher monthly payments, etc).

I don't know which option makes sense.

Advice is very much appreciated.

Thanks,
flybuys

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