Thursday, February 3, 2011
To Buy or Not to Buy
Which sounds great written up there, but really it stinks. We are so tired of renting. We've been looking for a house for 5 years now and haven't found anything that we like and is in our price range. Sad, isn't it. We've been meeting with a builder for the last month and things looked like they were on track for a house we liked, in a neighborhood we liked, for the price we wanted. Only, the builder was way off his original estimate, which in turn put the final price way over our budget.
Now here's the dilemma. If we didn't care about student loans and took out more to pay for this degree, and we quit making payments on the existing loans--because hey--they're in deferment anyway, then it would free up an extra $500 a month we could add on to a mortgage payment. Which obviously means our price range for a house would go up significantly. But then when he graduates we will be looking at a pile of student loans to pay back. Which we don't want.
On the other hand, if we buy or build a house then ideally when he graduates we will have equity in a home. Which we won't have by renting.
So the question is, is student loan debt and equity a better way to go than starting at zero when he graduates?