I tackle the frequently asked question of whether to buy or rent in a new location, which is especially pertinent for military families or those with jobs requiring frequent relocations. I cover essential considerations such as mortgage interest rates, down payments, and financial health. Using NerdWallet's calculator, I demonstrate how to evaluate these factors, offering a case study of a client's situation. I also explore the impact of interest rates, transaction costs, and the amortization schedule. Lastly, I discuss how financial stability may influence the decision to rent or buy, emphasizing the importance of personalized advice based on one's unique circumstances.

Key Takeaways:

• How long should I stay in a place if I choose to buy?

• How can I take advantage of the different financial tools, like a VA Loan, to help me make my decision?

• How does the interest rate and down payment affect the amortization schedule?

• How to factor in savings, debt rate, and other budgeting factors into a decision to rent or buy a home.

Key Timestamps:

(00:00) Introduction: Buy or Rent?

(00:51) Calculating Cost to Rent vs Buy

(01:43) The Impact of Interest Rates

(03:55) Down Payment Considerations

(05:46) Client Case Study

(07:35) Conclusion and Final Thoughts

(08:13) Outro and Additional Resources

Key Topics Discussed:

Erik Baskin, Baskin Financial Planning, BLUF, Bottom Line Up Front, The BLUF Finance Podcast, Military Money Manual, veteran finances, cost to rent, mortgage payments, interest rates, amortization schedule, NerdWallet

Mentions:

https://www.nerdwallet.com/

More of Baskin Financial Planning:

Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠Book an intro call with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: erik@baskinfp.com

www.baskinfp.com/post/43

I explore the common question of whether to keep a house as a rental property or sell it. Using a recent case study of a 39-year-old client from Virginia, I break down the detailed financial analysis involved. The client's home, valued at $480,000 with a $431,000 mortgage at a 5.63% interest rate, would result in a monthly deficit of $1,074 if rented out. My comprehensive walkthrough includes considerations of rental income, property management fees, taxes, maintenance, and vacancy rates. To wrap the episode up, I compare maintaining the property as a rental versus investing in the stock market, ultimately guiding the client to sell the property. Listen to this episode if you’re considering renting or selling your next home.

Key Takeaways:

• Is it always a good idea to keep a property as a rental investment when moving to a new home?

• How does a high-interest rate impact the financial viability of renting out a property?

• What are the comprehensive costs and factors to consider when deciding between renting out a property and selling it?

• How do the long-term financial outcomes compare between maintaining a rental property and investing in the stock market?

Key Timestamps:

(00:00) Introduction: Rent or Sell Your House?

(00:36) Case Study: Analyzing the Numbers

(01:18) Financial Breakdown: Costs and Considerations

(04:17) Comparing Investments: Real Estate vs. Stock Market

(08:32) Conclusion: Making the Right Decision

(09:34) Download the Ultimate Military Finance Checklist

Key Topics Discussed:

Erik Baskin, Baskin Financial Planning, BLUF, Bottom Line Up Front, The BLUF Finance Podcast, Military Money Manual, veteran finances, property management fees, taxes, HOA, insurance, home maintenance costs, vacancy rates, real estate vs stock market, real estate appreciation, stock market return, mortgage interest rates, investment viability, monthly cash flow analysis

More of Baskin Financial Planning:

Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

https://www.baskinfp.com/checklist

Think you might need some financial help? ⁠⁠⁠⁠⁠Book an intro call with me to see if we would be a mutual fit.

https://calendly.com/erik_bfp/intro

Questions or comments, drop me a note at: erik@baskinfp.com

www.baskinfp.com/post/42

Let’s discuss how to take a holistic view on finding a mortgage that works for your situation. There are various mortgage types, including 15-year and 30-year conventional loans, 5 year adjustable rate mortgages, 30 year VA loans, all with different down payment options, and FHA loans. With buying a house being such a large decision, let’s examine these options, emphasizing the importance of considering both qualitative and quantitative factors in your financial situation. We’ll go through detailed breakdowns of what your monthly payments and total interest costs over various time periods might look like, highlighting how different choices can impact the lifespan of your loan. Tune in, as I aim to empower you with comprehensive insights to make well-informed decisions regarding your next home purchase tailored to your long-term goals.

Key Takeaways:

• Given your timeline and down payment, what will your mortgage cost in fees and interest?

• How does putting 5% down on the VA loan drastically improve your home buying situation?

• Should you plan on refinancing your mortgage in the near future?

• What qualitative factors should you consider when getting ready to purchase a home?

  
  

Key Timestamps:

(00:00) Introduction to Mortgage Types

(01:12) Overview of Mortgage Options

(02:56) Loan Calculator: Down Payment, Monthly Financing, Loan Term, & Interest

(04:36) Comparing VA and Conventional Loans

(06:02) Long-Term vs Short-Term Mortgage Considerations

(08:53) Final Thoughts and Recommendations

(10:48) Conclusion and Additional Resources

Key Topics Discussed:

Home mortgage, conventional, government backed, fixed rate, adjustable rate (ARM), Veterans Affair, VA loans, FHA, first time user, subsequent user, refinancing, interest rates

More of Baskin Financial Planning:

Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠Book an intro call with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: erik@baskinfp.com