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uhhleesha · Jan 18, 2009, 05:58 PM

I'm going to be attending college this winter quarter on the other side of the united states. I plan on living in Seattle region, more specifically Edmonds area. I have a place to stay 'till I find somewhere to live, and I don't have a job lined up. However, I'm saving up money for myself when I do happen to move out. My mom said she'd pay for my schooling as long as I have a job, and that would crunch out a lot of budget money. However, I'm wondering which would be better for me, financially, as a student?

Renting I wouldn't be able to paint, and I'm scared after four years I'd have thrown out money on something that isn't mine but someone else's.

Buying a house would require a loan unless I saved up money for the down payment, but when it's paid off the house would be mine.

I'm torn here. What do you think?

ScottGem · Jan 18, 2009, 06:15 PM

Do you plan on staying and living in the seattle area after graduating? Unless you do, I wouldn't suggest buying. Mortgages are front loaded so you would develop very little equity in the first 4 years.

Fr_Chuck · Jan 18, 2009, 06:43 PM

Well three years ago, my advice may have been different.

Here in Atlanta, it was common for college studnets to buy condo's or apartment homes near the school. Their values increased enough over 4 or 5 years to be an investment,

But the last few yearss, they will not get enough from the sale to even pay off the loan now.

Normally after school the same place will not be what you want.

So renting is still often a good choice till ou are out of school

uhhleesha · Jan 18, 2009, 09:58 PM

I plan on living there way after college. Maybe even permanently live there. I was thinking about houses that have been foreclosure, bankruptcy, and other uhoh accidents that could be used in my favour. Usually those houses are sold for the remaining balance and maybe some interest instead of the realtor's price.

ScottGem · Jan 19, 2009, 06:48 AM

Originally Posted by uhhleesha

I plan on living there way after college. Maybe even permanently live there. I was thinking about houses that have been foreclosure, bankruptcy, and other uhoh accidents that could be used in my favour. Usually those houses are sold for the remaining balance and maybe some interest instead of the realtor's price.

Umm no. Generally a foreclosure has a high balance. If the homeowner has a lot of equity, then they will be more likely to be able to sell it on their own. You might be able to pick up a handyman's special, but Seattle real estate prices are pretty high.

However, if you do plan on living there permanently or long term. Then it may not be a bad idea, if you have the down payment and the income.

stevetcg · Jan 20, 2009, 02:13 PM

There is also the point that you do not have a job. Who is going to give you a mortgage?

uhhleesha · Jan 25, 2009, 02:31 PM

I have a place to stay and I could look for a job during that time, as I stated before.

I'm pretty much sold on renting now, my mom and I discussed it. She said it'd probably be cheaper for me, and if I decided I didn't like Seattle I could simply move after college or when my lease is up.

twinkiedooter · Jan 28, 2009, 05:03 PM

Do you have a good credit score, a huge downpayment? If not, then you'll almost have to be a renter. A job would also help. Right now you probably don't have either so this is just a pipe dream of yours for now.

uhhleesha · Jan 28, 2009, 10:04 PM

Yes my credit score is good, but I've already decided on renting. I don't have a huge down payment, but, like I said I'm sold on renting.