Should Military Families Buy or Rent?

Hi Rick,

Welcome to our forums.

Buying is always considered as more profitable than renting. When you buy a home with a mortgage, you are able to get tax benefits on mortgage interest. Also, with the rise in market value, you will be able to build up equity in your home. Thus owning a home is a profitable investment. And, you can also take a loan against your home in future in times of emergency.

With renting, you hardly get such benefits; instead you go on paying for the financial gain of another individual. Therefore, I think you should buy rather than rent.

Thanks,

Caron.

Hi there,

If you need a home for short term, you can consider renting, but for a long term purpose, it is always better to buy your property.

thanks

Hi Rick,

Welcome to MortgageFit Forums.

This question IMO will be best answered by the people in military only. You can consult with the seniors in the army and check what are their opinions and what they experienced in buying or renting home. That can help you to take a proper decision on it.

In general I can say that buying is always better than renting as you are paying towards your asset in the former whereas in renting you are giving away money to someone else and at last you own nothing as an asset.

But that depends upon nature of your work also. If you are constantly on a transferable job then you need to think in a different way. You have to consider the length of time that you are going to be at one place.

Here are some general guidelines which may help you to take a decision. These are in the form of questions that you should be asking yourself -

• Do I think I must wait for base housing to become available to me?
  
• Can I afford the upfront money?
  
• Can I get the required financing?
  
• Is my assignment longer than two years?
  
• If the current assignment is less than two years then do I think that I will have my next assignment in this town/area?
  
• If the assignment is less than two years then, do I have a chance to return to this area?
  
• Is this base large enough to remain open?
  
• If the base closes then whether the effect will be minor on the local housing market.
  
• Can I take the responsibility of a landlord?
  
• Can I keep a property manager to take care of my property?
  
• Will I be able to find a house which will retain its resale value?
  
• Can I afford the mortgage payments without a tenant for a few months?
  
• Do I require the house to be able to provide me with the space I need?
  

The more your answer is "no" the more you should opt for rent instead of buying. But remember this is only a general guideline and it may vary with the particular situation of persons. Try this out and take suggestions from other people in the same profession whom you know better and who has prior experience. Practical experience always helps as you know.

God bless you.

For MortgageFit,
Samantha