Friday, March 9, 2012

I will be studying full time for 2 years this Fall. Should I buy an apartment instead of renting out?

The apartment prices in the area are about $75,000 for a 2 bed. If i rent, I'd pay about $800 in rent. Should I instead buy the apartment and rent it out to another student for $400? My 30yr mortgage would also be around $350. Also consider that I will be responsible to fix any equipment that fails in the apartment (washer, heater etc)I will be studying full time for 2 years this Fall. Should I buy an apartment instead of renting out?
Personally I would rent. Why would you put yourself at risk in two and a half years. Yeah you would save a little money now but what are you going to do when you try to sell it and you have no buyers? Or you sell it at a loss. You also will have property taxes, insurance, PMI, and maintenance. What if your room mate is psycho and trashes the place? Don't become a landlord by default. Find a cheap one bedroom or better yet find a room above some old ladies garage and tell her you will mow her lawn and rake her leaves in exchange for free rent. go to school and graduate. Get a job and save up a bunch of money then buy something.I will be studying full time for 2 years this Fall. Should I buy an apartment instead of renting out?
Yes, as long as you can get a loan it is better to own then rent. Best Wishes.
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