Should I Rent or Buy?
I am going to go ahead and say what you are thinking. Of course a real estate agent is going to say that it is better to buy than rent! They sell houses for a living! So I completely understand why you might say why should I read any more? I hope my honesty has encouraged you to read on.
The biggest question I have for you is why should you pay a landlord when you can pay yourself? Most rentals in the Chesapeake/ North Beach area will run between $1800 and $2000. If you are stationed here for 2 years, you will pay a landlord between $43,000 and $48,000. So my follow up question to you is why not use your BAH to pay yourself and build wealth? By renting, you are literally lining a stranger's pockets instead of your own!
How will I get a down payment? It is possible that you could get a VA or USDA Rural Development loan without having to come up with any money out of your pocket. If you get one of these loans, you can purchase a home with $0 down payment. It can also be negotiated that the seller pays your closing costs so it's possible you won't have to come to the table with any money. A mortgage lender should be able to give you the details of both loans. Keep in mind, when you rent, you will need money for at least one month's rent and your security deposit. Once again it's money you will be paying someone else. The $3500-$4000+ you would be paying for the first month and security deposit could go toward closing costs.
What will you do with the house when you have to move? I know your life is filled with uncertainty. You never know when new orders will uproot you and your family. Having to sell, rent and/or maintain a home from the other side of the country or world can be a scary thought. A good realtor will help you with all of this to ease your stress. No two situations are the same. When you have to leave the area, if the market is hot, you may decide to sell the house. The other option is to rent your home and create extra income for yourself while building even more equity in your home. I would recommend that you sit down with a real estate agent and discuss your options. The agent will be able to tell you what you should be able to get for your home and what you could get each month for rent. In most cases, the rent you would be collecting will be more than what the mortgage payment is... so you would be making money!
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