[WGRocky]

I have been a reservist for awhile, but plan on going active duty. I understand the costs associated with buying a home and then reselling it. Is it worth the small to go through all of this at each station for a small equity or is it just better to rent until you are near retirement and get a station where you want to own a home? I know the housing market probably makes this answer lean more toward renting (since now prices change alot and it is hard to sell a house).

[BariGrootrego]

It depends.

If you think you are going to be at that base for 5 or more years...buying might make a lot of sense.

If you have a family, and you don't mind leaving them in the house until it sells if you have to...and move somewhere yourself and rent out a room...then buying may be less risky. OR you are in a good rental area.

If you are single, and move often...then buying might be risky.

I only bought one house in my career...I was single at the time, and stayed in the house for 3 years....I hit the market just right and sold the house for $105K more than I paid for it. I did have to leave it empty for 3 months after I PCS'd until it sold...that kinda sucked,

[BenBoobmers]

If your willing to stay in the house...now is the best time to buy...4.25% on a fixed 15 year loan....

Are you willing to put up with renting your house? Not knowing who will be in it...and you cannot say "well they will be military only" because I've seen military families destory rentals...

If you rent you will have to have a sizable account just for "Incase something happens" to the house...

I've know people who have bought houses at every base they were ever at...and still continue to rent them today...

Alot of research needs to be done on the area, and if you do deploy...how is the market around there...what about the realtors who will be renting your house...how are they?

[chujwduperjadzi]

If your willing to stay in the house...now is the best time to buy...4.25% on a fixed 15 year loan....

Are you willing to put up with renting your house? Not knowing who will be in it...and you cannot say "well they will be military only" because I've seen military families destory rentals...

Too true. BUT those 'nasties' are few and far between. I know one guy who has bought a house EVERY duty station he has been at. He uses his BAH to pay off the morgage at the first site, and when he leaves, uses the rental money he gets to keep it being paid. He then buys another and transfers the BAH to there..

I know many who rent out their home, mil only, who swear by it. And only a few who have hated it.

If you rent you will have to have a sizable account just for "Incase something happens" to the house... AND for any upgrades needed, or time that the house sits un-rented. BUT at least if you go to fellow mil, you are assured they won't miss rent when its due.

I've know people who have bought houses at every base they were ever at...and still continue to rent them today...

Alot of research needs to be done on the area, and if you do deploy...how is the market around there...what about the realtors who will be renting your house...how are they?[/QUOTE]

Also, look into whether others on base are willing to rent. Would you do it for just those at your command or anyone?

[Talicoabilk]

Well, just personal opinion after only living in 29 Palms for 4 months, I would not recommend buying a house there. Like you said, the resale wouldn't be that great because the military pays for everyone to live in military housing or pays their rent. I'm not sure too many families make 29 Palms their permanent home. There are some non-military families out there, but they already have their homes. My suggestion would be to either get military housing or rent a place (you can sometimes pocket some of BAH with this) and if hubby reenlists, use his reenlist money to invest in a place either at his next duty station or to put a down payment on your dream home where you two plan to live long term.

Regards

[NowFloabDow]

You probably shouldn't be considering buying a house. You are already making one terrible decision by giving up the reserves to go active duty. Until your decision making abilities improve, just rent, squat, or live in a van down by the river.

[Qvqnubpj]

Do a lot of research on the markets you're considering. How hard was it hit after the housing bubble gave way? How has the market recovered? What kind of space do you need? What is the quality of schools nearby (even for singles - really consider this. It's a major factor in home value)? Do you have the skills and cash necessary to settle on a fixer-upper? What interest rate do you qualify for? Fixed rate? 15- or 30-year loan? How long do you expect to hold on to the house? If you got orders, would you sell or rent? Are you willing to satisfy youwants now, even if you risk a loss later?

It can work out for you with time and research. I built my first home in 2000, neat Scott. Sold in 2004 for a profit of 60k after fees (profits are tax exempt if it's your primary residence and you've had the home for a while - very good deal). Built a home near Goodfellow in 2004, sold it in 2009 for a profit of 40k tax free. Built a home in 2009 near DC, if I sold it today I'd break even. I plan on holding on to it for a while and sell when the market has fully recovered.

Research you finance options at bankrate and check with USAA and local credit unions. Check market info through Trulia, Redfin, and Zillow. Redfin has great forums where you can find analysis and ask questions. Research foreclosures through Realtytrac. If you go this route or shortsales, realize that this takes far much more time and patience. The banks and sellers can both jerk you around. Some find the savings worth it in the long run.

[mikelangr]

Also, research local rules on renting out your own home. I know some who did this, after moving to a new duty station.