Buy or rent

thinkingoutloud86 · Post by **thinkingoutloud86** » Tue Mar 18, 2008 7:18 pm

Hey all-

This isn't as a serious as some questions, but still was wondering if anyone had any opinions.

I had my single MS attack approximately 3 years ago. It took about 18 months to recover and my symptoms are currently relatively mild. At the time of the attack, I was close to finishing up my schooling and after a break, was able to get back on track. If MS was not a factor, I'd probably be looking to purchase a home right now. But, I'm hesitant due to concerns that if I became sick again, I am not sure if I would be able to make the house payments. Any ideas?

ThinkingOutLoud

MrsGeorge · Post by **MrsGeorge** » Wed Mar 19, 2008 2:20 am

Can you get payment protection insurance - we had that so if either of became unemployed or too ill to work then the mortgage got paid for us.

Given the current climate, my husband and I have decided to rent rather than buy at the moment, but we're in England.

2gentle · Post by **2gentle** » Wed Mar 19, 2008 2:33 am

Hi TOL,

I'm thinking YOU are the only one who can answer that question, and w/that being said, let me tell you I am a homeowner and have been for over 18 yrs.

Also, I was dx'd w/RRMS about 3 yrs AFTER I bought my home. I was working at the time, and other than having my lil world rocked by the dx, things were ok.

I don't work any longer as working in critical care, I knew my cognitive abilities *may* put a patient at risk, so I chose to leave. Things with the house are still ok, so it can be done.

In fact, I take pride in knowing that MY lawn usually looks better than my neighbors (said w/a grin) and I am the one who takes care of it.
Of course, I don't have the money I did while working, so spending isn't done as freely, but it's so nice to sit down in my own home, and know that
I *CAN* do whatever I want to it, w/out asking permission.

I would say to look closely at your financial records, esp the spenditures, and if YOU are satisfied w/what you see, then GO FOR IT.

MS hasn't stopped me yet, and w/the good Lord willing, it won't. I am currently in a relapse, but I still do what I need to.

Bottom line is this:

IF *YOU* THINK YOU CAN, THEN DO IT. DON'T DEPRIVE YOURSELF OF THE SATISFACTION OF OWNING A HOME, JUST BECAUSE YOU HAVE MS.
I haven't.

Take care and be well,

Gentle[/b]

gwa · Post by **gwa** » Wed Mar 19, 2008 6:42 am

Unless someone is giving you free lodging, you have to pay rent anyway, so what is the difference between paying rent and making a house payment?

At least with a house, you might have some equity if you had to sell because the payment was too much for you at a later date.

gwa

Loobie · Post by **Loobie** » Wed Mar 19, 2008 8:34 am

I agree with GWA. However, if you don't have much to put down and would be in a negative equity situation if you had to sell quickly, I'd rent. But if you have 20% to put down, you could probably get out of it quick and not be upside down except for the loss of your 20% unless you got it back in the sell.

Totally up to you though, but I have found it best to try and keep MS from forcing my hand in making tough decisions. This, however, is potentially a big $ decision, so I would just talk it over in depth with your spouse/SO/yourself

and make lists of pros and cons and then use your data only in the decision making process. In other words, try to keep your heart out and your head in.

gwa · Post by **gwa** » Wed Mar 19, 2008 9:16 am

What loobie says is absolutely true as far as the current housing market and buying anything. I am going to move in the next few months and have been going bonkers trying to find a home (looking online for now) because of the depressed market where we are going.

I am even considering renting an apartment for 6 months or more until I feel like the market has stopped heading downward at breakneck speed.

gwa

MattB · Post by **MattB** » Wed Mar 19, 2008 9:44 am

Another factor to consider could be whether or not you are going to be sharing the burden with a partner.

Personally: I will be done with school very soon and I don't plan on letting my MS have any factor in my decision on where I live. I hope to rent for a bit while I make sure my job is going to pan out and then to get a house. Somewhere along the line I will probably marry my current girlfriend so it won't be just me either.

Muu · Post by **Muu** » Wed Mar 19, 2008 11:01 am

I only have one thing to add about the issue of mortgage protection insurance and that is that your dx of ms may prevent you obtaining insurance if you stop work because of the ms. You may have to disclose many things about your general health and a subsequent claim may be denied if you fail to do so. If your looking into this take your brokers advice and read the small print!
muu

DM · Post by DM » Wed Mar 19, 2008 6:17 pm

I agree with Muu. Insurance policies do not usually cover pre-exisiting issues, such as MS. I was unable to get sick leave insurance on my car lease even though the dealer said I'd be covered. I read the fine print and it clearly says that pre-exisitng conditions will NOT be covered.

thinkingoutloud86 · Post by **thinkingoutloud86** » Wed Mar 19, 2008 7:58 pm

Thanks everyone...

It's a hard decision...I am not married and just started my career, so I haven't saved 20% at this point...and, I try to maintain that attitude of not having the MS impact how I live my life...but, I don't think I would be able to get the necessary insurance in the US (though, I am more speculating) given the preexisting condition...what would I do if I was suddenly became sick...was unable to continue working...and, I had mortgage payment due? Are there any other back ups out there that others know about, that I may not be aware of?

TOL

whyRwehere · Post by **whyRwehere** » Thu Mar 20, 2008 3:55 am

Dare I say this? You won't get a mortgage if they know you are ill, probably, so even though I am very honest this is something I would consider not mentioning....after all, if you can't work, you could either sell or rent it out and move in with family/friends? Go for something that would have a broad appeal and do quality renovations, so that if you have to move fast, you've got the best thing on the market in its price range.
Maybe you could get a mortgage if your parents would be the guarantors...if you had to declare your illness....

Artifishual · Post by **Artifishual** » Thu Mar 20, 2008 6:29 am

thinkingoutloud86
you really need to think to yourself on this on.LOL. i wish that none of us were here talking about this but we are and that is a fact. i wish i could go back in time and change some decisions i've made when it comes to this subject. we bought our house about two years ago.before dx. purchased it for 200k put another 30k into it, now i was able to put down 100k. we have a nice house in tx and for our market it is an upscale house. 4 bedroom three bath etc. i wish i would have bought a house with all the cash i had at that time, because now as my health is not that great i am facing paying off the balance of around 82k after the payments we have already made. i could be in a nice house that is payed for. hopefully my health will hold up,but if not then we will be in deep shit. my wife is currently unemployed. she has a mba and can't find a job. what little savings we have would only last about a year or so. we could always sell but that is even in question with todays housing market going crazy. nothing makes me feel worse with ms than having to worry about money. JUST MAKE A GOOD CHOICE. it is one you will have to live with for a long time. i don't know your money situation but a house is the biggest financial investment you will probaly make. i hope you do buy a house and i pray that your health stays with you. goodluck and God bless. arti

Rudi · Post by **Rudi** » Thu Mar 20, 2008 1:48 pm

Buy.

Your house price will rise in value extraordinarily in value in your lifetime.

If the market is depressed, it means people are having a hard time selling and therefore you can play hard ball and put in some low offers and get a bargain.

Also consider an interest only mortgage for the first few years until you get more settled financially.

Good luck and make sure you get a good deal on a modest property that you can afford and enjoy!

Rudi

lyndacarol · Post by **lyndacarol** » Thu Mar 20, 2008 2:59 pm

I vote partially with Rudi--now is a good time to buy (if you don't have a house to sell first). Look for a convenient floorplan,...just in case disabilities come.

I think a 30-year fixed rate mortgage is the way to go--you'll always know what you have to pay. You can consider the monthly payment as rent, you'll have to live somewhere. You can pay less over the long haul with a 15-year mortgage, but you can deduct the interest off taxes so why hurry. You're young, have time, and will probably sell it and move on with your life when the answer to MS comes and the fear of uncertainty is gone.

But I have no background in finance; the accountants here can give you better advice.

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