Expert: Dottie Worthington - 12/20/2010

Question
So here is my dilemma.  My husband stays home with our two young children while he works on his dissertation for his Ph.D program.  I work outside the home and my job is the only source of income.  We are in an apartment right now and need to renew our lease within the next few weeks.  We are wondering if it is best to keep throwing away $1000 a month on rent or if it would be a good idea to buy a house. We can afford to buy a house (I think- I don’t know much about the process), but am wondering if it is a good idea when we don’t know how long we will be living in this area.  Once my husband finishes his dissertation, he will start looking for a teaching job and we could end of up anywhere in the country.  The problem is we don’t know how long this will take.  He could finish up in the next 3-4 years or it could be 10 years (he is progressing very slowly since he has to watch the children).  I would like to have a house for the kids and our money in an investment like a house.  I hate the idea of wasting money on rent for the next few years, but a few people have told me that buying a house would not be a good investment if you are going to turn around and sell within a few years.  Is this correct?  Money is very tight and we don’t want to get into a situation where we are going to be losing money.  Would you buy a house knowing that you may have to move in a few years, or is it best to keep paying rent?

Answer
Now is a great time to buy a house! Best time in many years, prices have dropped and the interest rate is as low as it has been since the 40's!  You can get a much safer and larger home for your children for $1000 a month.  I would defiantly buy even if you want to move within one year!