Hello All, Landed in US in 2011, we both are working. But never thought of buying house as we are sure to return to home country. But now, thinking to buy a house, here where running with lot of confusion/questions/doubts/what not….. Here is the list: 1. Why to buy now: Per every one wasting money spending on rents , same with little more can be invested on house. 2. Kids can enjoy big house. Of course we too. 3. But it is sure (100%) that we have to return to India, to take care of parents. When to return to home country: a. My opinion to return in 2 years keeping in mind my 8yr old education. b. But my husband is thinking to return after 4 or 5 years. I am saying big NO . Reason – my daughter might face too much transition in education. Don’t want to cause for any kind of interruptions to her studies. 4. Now the point is - is it really worth to buy a house just for 2 years stay? 5. If at all we prolong our stay in US and return after 4 or 5 years, how big would be the transition for my daughter who is 3rd grade now. Can you please enlighten me with your suggestion/opinion/experiences. Regards, Vijaya
No. Buying a house involves a fair amount of expense on top of the mortgage, in the form of inspection fees, closing costs etc. The amount will depend upon the area you buy in. That is money you cannot recover unless the house appreciates or you live in the house long enough to recoup the costs. In general, the break-even point is at least 5-years. If you plan to sell in two, you will lose money.
Regarding education, Indian system is more academically focused (Marks oriented ). If you plan to return, you must do it soon. ICSE, CBSE have 2 language policy and also 3rd language which begins normally either in 4th or 5th grade. Also lots of writing, projects etc. The child can adapt when young, otherwise the pressure is too much. Take your call. Also there are international boards, but I am not aware of how they work.
You should consider buying a house only if you are sure you will live in it for atleast 5 years. 5 years is when you will breakeven on an average and anything less than that is considered a risk, unless your house price appreciates more than the average in the US. And you should also consider the maintenance costs, if you buy a house.
If you are planing to return to home country within 5 years, it is not a good idea to buy house. Lot of money is required, as closing costs, down payments , maintenance etc. Only advantage I can see -kids may be able to enjoy more space. Another thing - your monthly mortgage will be different from calculation on websites as there will be more taxes. The mortgage should be less than 1/3 of your monthly income, else it make life more difficult. It also depends on where the house is and the current market. If it is in place where you dont expect much growth in value, it is most likely that you will loose money. May be you can make money in future only if you can buy a house well below market value now. It is not so easy to sell the house also- depends on demand, location, school district etc.. If you are 100% sure to go back within 5-8yrs, try to save as much money you can.
Unless you live in a very hot housing market I would not buy a house with such a short time frame in mind.
If u r returning to India buying house is not a right choice. Reason 1.if u buy house u will extend ur stay here result after some time ur children’s can’t be in India automatically u will not leave this place. 2. If u r returning then selling house etc is additional tension 3. If u r selling the house in 2 or 5 yrs the appreciation will. It b there so automatically u will lose some money 4. If u r moving to India age of 12 or 14( daughter) it will b tough for her to get settle in india..will disturb her education Alternatively u can move to some individual house here for 1 period so u all can enjoy ..other than buying and selling and wasting some money u can take this option because it’s stress free. It will b correct to move to India at age of 10 so she can settle down with Indian education with8n 1 yr or 2
Hi OP, Everyone is giving very good suggestion and seems all are experience. We recently purchased house and I tell you, more space, do not take it as first reason to move to a house. You can rent independent homes or condos for bigger space. But buying home is very difficult task and blow on budget. You plans will automatically change once you buy even condo. House won'y give you investment until after 5-8 yrs of stay so think what is important for you. Feeling of home or feeling of returning to home country
In your case, buying a house is probably not a good idea. The market is hot in almost all the regions. Try renting a house to enjoy the big space.
Not worth it if you are going to leave in 5 years. Owning a home comes with other expenses (Utility Bill, repairs,lawn care, HOA fees etc). Instead just enjoy the renting experience and save up the rest and not worry about roof leaks,ac repair all that .
