To rent or own, that is the question

[ragani]

The last couple of weekends have been taken up with the great apartment search. I love where I live, but it really is not big enough for me, my lovely roomies and chaosloom. And really, in align with that "starting our new lives together" thing that we are embarking on, it seems like a good time to strike out on our own. Timing wise, we should probably move out by the start of September, because that is when one of the roomies returns from abroad, and things will get much tighter here.

We have looked at a range of places, some decent, some ridiculous. We even found a great one right across the street from where we are now and thought we had ended the search, only to be turned down because of chaosloom's credit. One friend, who just finished law school, pointed out that is was illegal for them to have turned us down when my credit and income is enough for me to take on the lease on my own, but we are not sure we want to pursue that "fight back" route at this time. Sigh...

Meanwhile, we have also talked about the possibility of owning. My step-mom thinks this is the perfect time for us to look for a place to buy because of the the current market conditions. There are any number of first-time home owner assistance programs in the towns where we are looking to live. There are even ones that are based on low-income, for which we might qualify for now (based on 2007 income), that we might not qualify for next year.

But really, is it a good time to buy? If so, why? And, what is the first step?

Comments

[furycom.livejournal.com]

I'm no good at going into the economics of whether it's a good idea, since so much depends on income levels, rental and housing markets in your area, the social dynamics of your roommates and how long-term your plans are, but the first step would be figuring out an ownership scenario with your roommates and then getting a loan pre-approval so you have some idea of which properties you should be looking at. Too many people househunt first, find something they love, and then either find they can't get the loan to swing it or take too long getting the approval and the house goes to someone else (though this may be less of a problem in today's slower market).

Good luck!