Buying a home yet still remaining mobile

[cmarcallen]

I'm trying to reconcile two things.

1) The desire to buy my first home some time this year while before prices eventually start ticking back up and interest are still low.

2) Desire to have a flexible and mobile lifestyle.

Maybe I am looking at it the wrong way, but thought of buying a house or condo would make me feel anchored and settled when my future goals are maximum flexibility, travel and extended time abroad. On one hand, I like the flexibility of renting and not feeling tied down to something, on the other hand, I think now is a great time to buy a home if you can afford it to invest in your future. Then there are practical concerns like my condo or house sitting there unoccupied for a few months at a time while I'm in traveling and how that could attract thieves.

Any thoughts on this matter?

[Sven]

"Being tied down" is a state of mind. Buying a house should not matter. If you end up feeling tied down when you own the house, sell it.

"Oh, but I'll lose money on it when I sell too early (insert any reason here)"

Well, that is exactly what being tied down is all about.

If you truly want a flexible and mobile lifestyle you shouldn't even be posting this question here ;-)

[maxpr]

Condo owning is relatively flexible and inexpensive (of course, depending on where the condo is). I know Austin, TX is a cool town with relatively inexpensive condos still available (my experience). Really anywhere in Texas is cheaper than many other places.

The turn around can also be much quicker and they can easily be converted into rental property.

So, thats an option.

Depending on your age and situation, have you ever considered potentially going in with a friend or relative and buying something merely as a future asset/investment/rental home...? If the situation changes and you are stable, you could buy their portion out.

Just thoughts. Really it sounds like you have more to figure and worry about outside of owning a home. Maybe start writing some goals out on paper and see what solutions would "fix" the situation you "feel" you are in.

:)

[TimWieneke]

If you want to do this smart, find a place that's relatively safe to live where you can buy a home for under 10 grand that you can use as a "base" of operations and do all your travel from there.

I have 8 such houses right now and use them as rentals now but the basic formula is they cost me under 10k to buy and repaint and clean (except for the 3 flat - it cost 30). Each one costs about a hundred bucks a month in taxes and 50-80 bucks a month in insurance. If they're vacant I don't keep utilities on in the winter. I turn off the water at the meter and open the valve at the bottom of the water heater to empty the lines in the house before I leave and pour some antifreeze into the bowls and tanks of the toilets. When I come back, I bug bomb the whole place for a day. Sure it's in Indiana for me (or anywhere else in flyover country like Ohio or Tennessee) but if your intent is to be traveling - who cares where you have an address. My girlfriend keeps trying to tempt me to Southern California and should that happen I'd probably have my home address in some little remote desert cabin in Nevada and just live in an apartment, hotel or boat or something in California.

Condos would be cool too. There's some screaming condo deals in Florida right now around Fort Myers and Orlando.

Sure you have concerns about thing like thieves but if you own less crap, there's less to steal. They'll be after copper or HDTVs anyway. They probably won't steal your yerba mate gourd. Just own less stuff that attracts thieves.

[liam75005]

Get a nice housein a good location that you can rent as a furnished appartment while you're away... A good way to get income while travelling... Some people actually make a complete living out of renting several appartments like that.

I personny live in this kind of places when I m travelling, so make sure you send me the link of your ad for the rental ;-)

[bsarabennett]

One of my favorite pass-times is traveling; whether it's abroad or within the United States. That said, there's something comforting about knowing that you have a place that is a home base. My husband and I chose to live in the midwest because housing prices are lower here as is the cost of living. Because of that, we have enough resources to travel at our leisure. It's definitely the best of both worlds. Just make sure that you have enough money tucked away in case those unexpected home-owner things pop up, like roof repair (http://www.roofer911.com) . Inevitably, they will. The first 6 months in our home really showed us that; our oven blew up on Thanksgiving (I kid you not), we were in a hail storm and had to get new siding and a new roof, and we had to replace our dishwasher. That said, I'm so happy we bought a home... and happier still it's affordable enough for us to travel. Hope that helps!

[fernando]

Buy something and rent it. If you come back maybe you'll have to rent someting for you because most tenants will want longer periods, but that way you'll keep the flexibility for you and take advantage of the current market situation.

[jasonhanley]

1) The desire to buy my first home some time this year while before prices eventually start ticking back up and interest are still low.

Do the numbers. Even with low interest rates, you still pay a crapload of interest on a mortgage.

Unless you have enough money to buy a house for cash, you are likely better off renting something cheap and investing the rest of your money in a diversified portfolio and keep saving until you actually really want/need a house.

There are some online calculators out there than can help with a comparison for your specific situation.

Just realize that with a typical mortgage, you'll pay the bank for your house several times over.

Hope that helps :)

[AlexMoen]

I had a pal who ran a business just by renting out homes using interest only loans (make sure they're at a fixed rate!). You can write off interest as an expense, as well as any maintenance. The interest only route works out if you plan on selling during market highs (then you can use the remainder amount of the rent as mostly profit), but if the rent covers paying off the appropriate amount of the principle as well, you're set. Just remember to first check the rental rates for homes in the area and that they are higher than the monthly payments for the loan you'd be taking out. If you plan on being in the area and using the home frequently, try to set up a month to month rental agreement (although it'll be tougher to find tenants that way). Or use the profits to reinvest in a new property using the same methods and become a millionaire in two years like he did- either way ;)

[global-citizen]

Providing you buy at the right time, real estate can be a great investment, even if you pay "a crap load" of money in interest. I bought a 3 unit apartment building for about the price of a large house. I make (after all expenses) about 300 dollars a month on it when I'm living there. When I'm not living there I make about $1500 a month. In 15 years when the mortgage is paid off I will get about $3000 every month.

Although some tenants want a long term lease, you can also rent it furnished for short term. Right not I'm subletting an apartment I live in through a rental agent and making $100 a month on that. Obviously I'm not doing this for the money but it does mean I don't have to pay rent while I'm away on a 5 month mini vacation. When I get back I'll have my condo back. And the rental agent handles all the details.

Real estate might have the perception of tying you down, but it is also a source of financial freedom. Ya, there are some responsibilities like fixing the roof, etc. but this are solvable problems, many of which can be delegated, and the financial payoff is significant.

[SunnyDaze]

Sounds like a popular option is to buy a place and rent it out when you travel. I think it works great for people who are flexible and maybe not as attached to their home :) But you have to be OK with living in a rental-like home that will be shared with others.

I own a home that I absolutely love - bought it 2 years ago and my husband and I have been slowly adding our personal touches to it with furniture, decorations, etc. I'd have a hard time renting it - knowing that other people would be living in it. Not to mention the fact that, let's be honest, renters treat properties much differently than owners!

From my perspective, my house and keeping it as my own, is a part of my TMI. Thought I'd just throw that out as another point of view!