Published Aug 17, 2008
Nursing Gyrl
19 Posts
Hello everyone,
I am new to the forum. Next year, I will be attending a 2 yr nursing program in Houston,TX but I am wondering if I should purchase an affordable house or remain renting. Now a days, everything is so expensive that it is difficult to figure out how to pay for school and maintain finances. Can anyone give me some advice on this? However, keep in mind that I am not able to live somewhere rent free (like at home with my parents). I will not work while in school. I also intend on going into a graduate nursing program a yr or two after this program. Yes, I know that I will need loans as well. This question is mainly directed at RNs who have finished a program within the past 2 to 10 years from now and had no one to help out financially while in school. Did you rent or buy a home? Was it a good or a bad decision financially?
FireStarterRN, BSN, RN
3,824 Posts
If you can possibly swing buying a home at this point in time, to do so would be in your best interest economically. I say this because it is currently a buyers market for real estate, and that won't last forever.
If buying a home will cause you to be so stressed out that you can't finish your nursing program, disregard the above advise.
leslie :-D
11,191 Posts
i would think that buying is always the better investment.
many first time buyers find they can pay equal or less to the rent they currently spend.
check it out.
and good luck!
leslie
Jules A, MSN
8,864 Posts
I'm always in favor of buying vs. renting if you are willing to stay in that house as long as needed before trying to sell. If the market is soft, like right now for sellers, to be in a position of having to sell is not good, imo.
Unless you get a mortgage now before quitting your job you may not be able to get one. I would add that I'm not a fan of taking out loans to live off of to skip working in the majority of cases. Its too many years of no income that you will never make up, imo. Most of my classmates also worked and were successful. Good luck with whatever you decide.
widi96
276 Posts
If you are planning on staying in the area after graduation - buying would be a better option. I rented through school because I was in a better area for me at the time - a month after I graduated I bought a house back in my home town. I was always told that if you are going to stay in one place for 5 years - it is better economically to buy, but if it is less than 5 years, you don't make your money back when you try to sell.
I'm curious to know if there are any RNs out there who were in a similiar situation who have already completed school and are currently working. Is there anyone out there who knows where I am coming from? I'm talking about a 100% independent person who was determined to be successful and made it on their own. Please school me with your wisdom. I know I can do it, I just need some advice.
These are the people you are getting your answers from.
I put myself through a BSN program - worked full time eves and weekends to pay my tuition, rent, car payment, etc.
It is all in what you can afford. I never could've afforded to go to school and not work. It wasn't an option, neither was buying a house. I was doing great to pay my $500/month in rent and get the rest of the bills paid. But I made it through. It is a good time to buy a house if you have the means to do so, but if you can't - you can always rent until you get through school and your finances turn around. No one expects you to be rich and have lots of money while going to school.
uscstu4lfe
467 Posts
If you are certain that you want to spend several years in the same house/location, then buy the house... if you can get it for about the same as you would rent for. The pro to this is that you'll be paying your own mortgage and NOT someone else's. The con to this is that you're stuck in the same location/house.
NurseExec
104 Posts
I rented during nursing school, because I had no intention of staying in the state after nursing school. We went on a month by month basis after our first two years in the home, and were able to bug out after graduation to the place we REALLY wanted to live. Point being, in this market, buy if you are planning on staying in the area. Rent if you're not :)
woody62, RN
928 Posts
I am outside of your perimeters but I think I have some insight. How much of a down-payment can you make? Most banks are requiring a higher down-payment then they have in the past. What type of interest rate can you honestly afford? What will you use as a safety net for any repairs that YOU will be responsible for? Remember, home repair can be an expensive byproduct of owing a home. You have to pay the plumber, the repairman.
To be honest with you, I went from a two year program, 1969-1971, my BSN 1973-1974, M.S. 1974-1976. I lived in NYC and I always rented. I never bought anything until the fourth year I live here in Florida. Then I purchased a condo, along with the bank. I had an excellent paying job. I did not carry too much credit card debt, less then $5,000. I had two more car payments. I lost my condo to foreclosure, my IRA was half taken by the feds, the rest I lost trying to say my condo. I got less then $1,000 on my car. I managed to pay off $3,000 in credit card debt. After eighteen years I am still paying a federal tax bill and will be paying it til the day I die.
What happen to me does not happen to everyone. But having sufficient insurance to pay a mortgage, to replace a car, to pay for repairs, to pay for life and health insurance (which I lost within a month of not being able to pay), to continue with school, all need to be taken into consideration. To be honest with you, not working puts me in a fearful position for you. Unless you have a great deal of savings, to fall back on, I wouldn't advise buying a home.
Woody:twocents:
Perpetual Student
682 Posts
I live with my parents while attending school, but I have done the math on renting vs. buying. In the short term, renting is much more cost effective, lower risk, and lower hassle. If something breaks or needs repair, do you really want to have to pay for it yourself while going to school? Will you have time to do all of the necessary maintenance? What if you wash out of school (which can happen for any of numerous reasons, including injuries that preclude participation in clinicals)? You state that you want to attend a graduate program after you earn your BSN. What if you end up deciding to attend one in a different area?
Some might argue that you'll "get back" some of the mortgage money that you pay out, but it won't be very much (if any) after the real estate agents' commissions, the interest paid to the lender (most of the early payments are primarily interest, with little going against the principle), and some of the costs inherent in home ownership, unless you live there for quite a few years. If you plan on living near that college for a long time, buying might be a good option. If not, renting would probably be better. Also consider that if the housing prices drop further, you might end up owing more on the house than you could possibly sell it for. One fellow I've corresponded with would have to pay $20,000 in addition to what he could sell his house in order to pay off his house. Instead, he is renting it out at a loss, hoping the market there improves so that he can raise the rent or eventually sell it. You might not end up in a similar circumstance, but you could.
If I couldn't live with my parents (or friends), I'd rent the cheapest studio or 1 bedroom apartment I could find where I'd feel reasonably safe. You should be spending most of your time studying, so as long as there's room for a kitchen, bathroom, bed, and desk, you should be all set.
Jo Dirt
3,270 Posts
Just keep in mind that when you buy a home, you have a lot of other expenses and responsibilities. Unless you plan on staying there a few years (5 or 6) you will likely lose money. Also, when you own a house, it is constant maintenance. House insurance and utilities are just the beginning. The water heater will break, the roof will start leaking, the plumbing will start leaking, the CHA will go out...trying to buy a house while you are in school and under enough stress is asking for trouble.
Why can't you rent a cheap efficiency apartment? I used to live in Houston, I know they are there. Rent a cheap apartment (I had two kids and lived in the housing projects for $30/month while I was in LPN school).
Be careful, because when you are in a precarious situation (being a student) adding the debt of a house can make that house a curse instead of a blessing.