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My wife and I are currently looking to buy a home and our current lease ends at the end of June. We can either sign another 1 year lease or pay $50 more a month to live here month to month. We are not sure how long it will take to find the home for us. We can get out of the lease if needed but it costs $1,300 and drops $50 every month we are here. What do you guys think?
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$50/mo is only $600 more per year, vs. $1300 to pay to leave.
Even if the $1300 drops $50/mo, it seems that it would still be better to pay the additional $50/mo.
In 6 months, you will have paid $300 more vs. paying out $1000 to buy your way out of the contract. -
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Assume you stay there 6 months, that'd be $50 * 6 = $300. $1300/2 = $650. So, paying month-to-month wins. If you don't know when and think you are on a normal distribution, then you should go month-to-month for minimum expected loss if starting at month 0.Originally posted by skives View PostComment
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Oh, I forgot. Does the contract say the rent won't increase except for the $50/mon for the entire year? If not, then signing the contract will very likely give you a better deal.Comment
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There are so many unknowns between this and the other housing post.
...just some unedited thoughts to consider
What is the criteria for the home you seek?
What is the likelihood of finding an existing home that meets that standard?
If it is a new home, what is the time frame for occupancy?
Why not use time to build DP to 20%?
What mortgage status/approval/discussion has been established?
Why not sublet your current residence or alternatively rent house until you fulfil rental agreement?
Any offer to purchase can include occupancy date you chose.Comment
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