Posted on Jan 27, 2015
Is home buying a good idea? Do you rent out your home when you PCS? Has renting a home given you an advantage financially?
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I currently have been debating this topic since I joined Active Duty not too long ago. I have heard both sides of the story, good and bad for both, and would like the input from fellow RP members who have been through this situation already. Is home buying a good idea? Do you rent out your home when you PCS? Has renting a home given you an advantage financially?
I realize that there are a multitude of factors for home buying but in general would like to know your story.
What say you RP?
I realize that there are a multitude of factors for home buying but in general would like to know your story.
What say you RP?
Home
VA Loan
Posted >1 y ago
Responses: 18
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I buy, almost everywhere I am stationed, live in the house (gets you a better interest rate) and then rent them out when I leave. Builds up my retirement package as I have been coming along through my career. I am up to 4 house now and keep going.
Couple of things to consider once you turn it into a rental:
1) You need to have a back up fund to pay for expenses / un-rented months.
2) Look at the posts you buy in: There will always be large numbers at Fort Hood, trainees at Fort Benning (Officer side - longer duration)
3) The house becomes a tax benefit after a while (repairs, property management fees, taxes, insurance, ect).
If you would like to know more, email me.
Also, when you buy, you are paying your equity, when you rent, you are paying someone else's!
Couple of things to consider once you turn it into a rental:
1) You need to have a back up fund to pay for expenses / un-rented months.
2) Look at the posts you buy in: There will always be large numbers at Fort Hood, trainees at Fort Benning (Officer side - longer duration)
3) The house becomes a tax benefit after a while (repairs, property management fees, taxes, insurance, ect).
If you would like to know more, email me.
Also, when you buy, you are paying your equity, when you rent, you are paying someone else's!
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SPC (Join to see)
CPT (Join to see) ,You should defiantly talk to LTC (Join to see) here. He is ahead of me but on my projected path I will be buying my 2nd home in 2years, and be paid for and buying me a 3rd place in 6years. About me, I will be 24 in march, started work at 16 for an average of 15,000$ per year. So I`m not rich, just good. Also might just be my method but lets just say it is still financed. I would charge a little more than the monthly payment and that extra money is not for me. It goes back to that house in some way shape or form. Insurance, rainy day fund for expenses in-case you do have squatters,bad tenants, bad plumbing ect.. And still when it is done with the payments, that money is still not there for me to touch. Well just yet. I don`t know about spreading them out. I plan on all mine being in my home state.
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SPC (Join to see)
I agree with your plan LTC (Join to see).
CPT (Join to see) It's always a lot easier to find someone that's willing to rent a house out rather than buy it, and in the long run (depending on the house and tenants) you pay off a mortgage with the rent and what's left as extra can be used for the house's expenses, repairs or updates. At the end of the day you own property rather than paying someone else to temporarily stay in there and not have anything of your own. At least, that's the way I see it. I've been a renter for a while and buying a house and having a mortgage (which is cheaper than my rent) saves me more money in the long run.
CPT (Join to see) It's always a lot easier to find someone that's willing to rent a house out rather than buy it, and in the long run (depending on the house and tenants) you pay off a mortgage with the rent and what's left as extra can be used for the house's expenses, repairs or updates. At the end of the day you own property rather than paying someone else to temporarily stay in there and not have anything of your own. At least, that's the way I see it. I've been a renter for a while and buying a house and having a mortgage (which is cheaper than my rent) saves me more money in the long run.
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CPT (Join to see)
LTC (Join to see) Sir thanks for the response. Stories like yours are encouraging when I think about buying. I am all about having a diverse retirement plan and having rentals certainly adds to it. Do you tend to have a profile of a home that you look for?
PFC Kenneth A - It always pays to have a plan. Mine would be similar to yours, all the extra money made on the rental would go in to a pot for the house to cover for maintenance, taxes, and whatever else would come our way. Thanks for the response.
SPC (Join to see) - I agree, and being here at Benning there are definitely folks who spend a lot of their time in the military here, along with retirees. I have also rented the last 3-4 years and would hate to see how much money I have dished out to other people's mortgages. Thanks for the reply.
PFC Kenneth A - It always pays to have a plan. Mine would be similar to yours, all the extra money made on the rental would go in to a pot for the house to cover for maintenance, taxes, and whatever else would come our way. Thanks for the response.
SPC (Join to see) - I agree, and being here at Benning there are definitely folks who spend a lot of their time in the military here, along with retirees. I have also rented the last 3-4 years and would hate to see how much money I have dished out to other people's mortgages. Thanks for the reply.
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CPT (Join to see), sir you really needed a other button. This is why: How long will you be stationed at Fort Benning, GA? If you know for a fact that you will be their for 4 years, then I would answer yes, buy a home. If you are not going to be living their for 4 years or more then I would tell you no. Here is why: You would not hit any of your principle on the loan until your 4th year. So the first three years of owning your home and making the normal payment per month you would only put about 10% toward the principle. Now if you plan to make extra payments and it would go directly to the principle then go for it. But understand that if you buy a home under the VA program and you leave the area, it is against their regulations of the loan to rent your home you would be forced to sell. Selling your home with only minimal amounts going to the principle could cause you to have to sell low and either making nothing or losing.
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CPT (Join to see)
PO2 Stephen Brinkley (Scott) I will have to look into that. I will be here for another 3.5 years until I hit CPT. Thanks for the response.
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Id say dont buy till you settle for good. I bought my first and only home when I PCSd to Benning in 06. Bought the house 2 months later. We knew this was my last duty station before retirement and wife was adamant about never moving again.
Theres too many variables to buying if not intending to go back permanently ie renters, maiintenance, market crash etc.
My brother, against my advice, bought a house while stationed in Charleston SC (Air Force).
When he PCSd to Delaware he couldnt sell it. Had renters that did some damage and is now in Nevada with a mortgage and paying rent with a house in SC that is empty right now and he isnt sure in the long run if he and his family are going to settle there.
Do the research and do whats best for you, your family, finances and piece of mind. You can make money from it but can also lose big time.
Theres too many variables to buying if not intending to go back permanently ie renters, maiintenance, market crash etc.
My brother, against my advice, bought a house while stationed in Charleston SC (Air Force).
When he PCSd to Delaware he couldnt sell it. Had renters that did some damage and is now in Nevada with a mortgage and paying rent with a house in SC that is empty right now and he isnt sure in the long run if he and his family are going to settle there.
Do the research and do whats best for you, your family, finances and piece of mind. You can make money from it but can also lose big time.
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CPT (Join to see)
SGT(P) Harry Clyde Jr. Thanks for the response. It just seems that I can't hardly get what I want out of a house in the rental market here. My wife stays at home, would really like a nice place for her to be comfortable.
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SGT(P) Harry Clyde Jr.
Sir,
It depends on where you are looking here.
I live in the Jordan/Waverly Terrace area which is walking distance to the hospitals and Uptown. Lots of rentals available and cheap but many are run by slumlords. I know of two for sure that are not. The houses generally date from the teens to the mid 1940s. Mines from about 36. This neiborhood will put people off if not used to it and the mixed demographic. Thetes quite a few soldiers living in rentals here to include officers.
You head north youll be in a safer enviroment, more tightly knit and neighborhood watch but youll pay the cost for it. We lived at the Oaks Apartments in Green Island hills before we bought. Comfortable but expensive. ($900 a month for 3 br and 2 bath).
The key in this town is proximity. Do you want to be closer to uptowns activities thats about 26 minutes from post, or seclusion and security net that borders Harris County where you pay more. Also to consider, house=landlord which is hit or mis and a lot of searching for the right one right neighborhood or the multitude of apartments with all their amenities, some are excellent.
Also consider pets and kids. Ill get into that if you let me know if you have both or one.
Lastly ask your wife what she would like. Explore together. See what as the homemaker what she would like to do or be near while your at work.
My wife chose our hotel, Howard Johnson, Apartment-The Oaks and our home after not liking six she was shown.
Please let me know if I can assist further. We have been here 9 years and know the area quite well.
It depends on where you are looking here.
I live in the Jordan/Waverly Terrace area which is walking distance to the hospitals and Uptown. Lots of rentals available and cheap but many are run by slumlords. I know of two for sure that are not. The houses generally date from the teens to the mid 1940s. Mines from about 36. This neiborhood will put people off if not used to it and the mixed demographic. Thetes quite a few soldiers living in rentals here to include officers.
You head north youll be in a safer enviroment, more tightly knit and neighborhood watch but youll pay the cost for it. We lived at the Oaks Apartments in Green Island hills before we bought. Comfortable but expensive. ($900 a month for 3 br and 2 bath).
The key in this town is proximity. Do you want to be closer to uptowns activities thats about 26 minutes from post, or seclusion and security net that borders Harris County where you pay more. Also to consider, house=landlord which is hit or mis and a lot of searching for the right one right neighborhood or the multitude of apartments with all their amenities, some are excellent.
Also consider pets and kids. Ill get into that if you let me know if you have both or one.
Lastly ask your wife what she would like. Explore together. See what as the homemaker what she would like to do or be near while your at work.
My wife chose our hotel, Howard Johnson, Apartment-The Oaks and our home after not liking six she was shown.
Please let me know if I can assist further. We have been here 9 years and know the area quite well.
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SGT(P) Harry Clyde Jr.
My apologies for a bunch of empty responses besides my reply to your recent one to me.
My phone is funny that way.
If you wish, my wife can provide more insight and will provide phone number, facebook etc so that they , your wife and mine, can talk to each other. Mine can give resources, answer questions, and so on. Let me know and we can make it happen.
My phone is funny that way.
If you wish, my wife can provide more insight and will provide phone number, facebook etc so that they , your wife and mine, can talk to each other. Mine can give resources, answer questions, and so on. Let me know and we can make it happen.
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CPT (Join to see)
SGT(P) Harry Clyde Jr. No apologies necessary. And we are looking at a home in Midland currently. Our standards are pretty high. We would like a newer home that is not in the heart of Columbus. Updated kitchen. Safe community. Good school districts. We like the Midland area, and also North Columbus/Fortson. I would live in Harris County too if the commute wasn't so long!
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