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We are going to be putting our townhouse on the market within the next couple of weeks. We went out looking at houses this weekend and only found one we could see ourselves living in. We figure the chances of that house still being available by the time we get an offer on our home is slim. We only have a couple more houses on our list that we'd like to see. There's just not much for sale in our price range and desired location right now. That being said, when we do get an offer on our townhouse, if we don't find a home for sale that we really like, what would be the expenses involved in moving from the townhouse to a short term (or month to month) apartment? We currently live in Raleigh and our desired home location is South Durham. The apartment could be in either Raleigh or Durham. How much would it cost to get utilities transferred from the townhouse to an apartment and then apartment to house? We are trying to figure out if doing the short term apartment lease would be a viable option or if it will be too costly. Otherwise we may have to settle for a home that is either at the top of our budget or outside of our desired location. I'm hoping that more homes will go on the market!
I am probably going to be doing something similar, I have a contract to sell my house but haven't found what I want yet..I doubt utility switching will be a big deal.(deposits get returned)
Consider
Storage of things while in small apartment
Cost of actual move( hiring pro's or friends)
I would do the temporary before buying something that isn't right for you..
We did a 6 month lease when we sold our house and started seriously looking around. We ended up needing a 7th month as we decided to build after not finding anything available.
Much of the expenses were a wash because of savings we experienced from *not* owning a house.
we had to store our stuff (most of it) so that was $$ out the door (expense)
we didn't have to pay property tax (savings)
we had to have rentor's insurance (expense) but didn't have to have homeowners insurance (savings) - and rent insurance was much cheaper
we ditched cable TV for the interim (savings)
we did not have a landline (savings)
electric - may have had a hook up charge? cannot remember - we had fewer lights, so it was cheaper
we had to pay for water/garbage/sewer (expense) and it was more than our house but it wasn't much
we moved closer to where we needed to be (savings on gas)
groceries - we ate in more and out less - so we spent more on groceries but much less on restaurants as we were closing on a house shortly (savings!)
heating/cooling - In apartment, we were heating/cooling a much smaller space, so that was cheaper (savings)
We had to move 'twice' -- (expense)
apartment pet fee for each pet (expense)
Apartment deposit (expense) but we got it back -- but that money was held the whole time
background check and apartment application fee (expense)
-- there will probably be some overlap in apartment rental/home ownership, so you may want to budget for that -- perhaps an extra month or two for a cushion -- if you can get month-to-month great. but we couldn't find that. It was nice of them to let us stay on for an extra month at the same rate - so that is something to ask -- or even leave a month early if you give notice.
We have the storage thing under control. We have already packed up a lot of stuff and we're storing it at my MIL's house. We don't know yet about hiring movers. We've got a king and queen bed, dresser, chest, nightstand, sectional sofa. But that's pretty much all of the big furniture. We've got some strong friends that may be able to help out. I just worry about them putting holes in the walls. :-\
We did a 6 month lease when we sold our house and started seriously looking around. We ended up needing a 7th month as we decided to build after not finding anything available.
Much of the expenses were a wash because of savings we experienced from *not* owning a house.
we had to store our stuff (most of it) so that was $$ out the door (expense)
we didn't have to pay property tax (savings)
we had to have rentor's insurance (expense) but didn't have to have homeowners insurance (savings) - and rent insurance was much cheaper
we ditched cable TV for the interim (savings)
we did not have a landline (savings)
electric - may have had a hook up charge? cannot remember - we had fewer lights, so it was cheaper
we had to pay for water/garbage/sewer (expense) and it was more than our house but it wasn't much
we moved closer to where we needed to be (savings on gas)
groceries - we ate in more and out less - so we spent more on groceries but much less on restaurants as we were closing on a house shortly (savings!)
heating/cooling - In apartment, we were heating/cooling a much smaller space, so that was cheaper (savings)
We had to move 'twice' -- (expense)
apartment pet fee for each pet (expense)
Apartment deposit (expense) but we got it back -- but that money was held the whole time
background check and apartment application fee (expense)
-- there will probably be some overlap in apartment rental/home ownership, so you may want to budget for that -- perhaps an extra month or two for a cushion -- if you can get month-to-month great. but we couldn't find that. It was nice of them to let us stay on for an extra month at the same rate - so that is something to ask -- or even leave a month early if you give notice.
Best of luck!
This is great info, thanks. How much did it cost you for a 6 month lease? How big was the apartment? I'm really hoping we can find something for less than our current monthly payment, which would help offset the expenses. Our current payment is $1271 but we also pay $130 in HOA dues each month so really our monthly payment is $1401. Is a 6 month lease for less than $1400/month realistic?
To return to your original question, WeLuvNC gave you a great synopsis of the financial details. May I add my thoughts?
Consider the emotional cost of buying a home that you can't afford or don't like. That's a long term cost. Financial stress is the number one reason for divorce - renting an apartment instead of buying a house above your budget is a way not to let that stress into your lives. Living in a house that you don't like or in a neighborhood where you are unhappy is deadly. Imagine, returning home from work every single day and dreading that walk into your OWN house. It will never become your HOME.
Patience is hard. But when you look at the long term affect of making a mistake here, the cost of renting and moving twice is insignificant in comparison to the alternative.
Last edited by Jkgourmet; 09-09-2013 at 03:56 PM..
Last year, we rented a LARGE two bedroom at Carrington at Brier Creek while our house was being built. They offered leases starting at 3 months, and you could get a lease for as long as you wanted. We got an eight month lease, at about $900/mo. Plus about $180/mo for utilities and cable TV, internet. They allow pets, in case that's an issue, for an additional deposit and pet rent.
Were we thrilled? No. But we used the 2nd bedroom as our storage unit, and made it work to our advantage to end up in the house that we wanted. The house that we now love.
To return to your original question, WeLuvNC gave you a great synopsis of the financial details. May I add my thoughts?
Consider the emotional cost of buying a home that you can't afford or don't like. That's a long term cost. Financial stress is the number one reason for divorce - renting an apartment instead of buying a house above your budget is a way not to let that stress into your lives. Living in a house that you don't like or in a neighborhood where you are unhappy is deadly. Imagine, returning home from work every single day and dreading that walk into your OWN house. It will never become your HOME.
Patience is hard. But when you look at the long term affect of making a mistake here, the cost of renting and moving twice is insignificant in comparison to the alternative.
Great advice, thank you. We both much rather wait til we find a house we love instead of settling on something.
This is great info, thanks. How much did it cost you for a 6 month lease? How big was the apartment? I'm really hoping we can find something for less than our current monthly payment, which would help offset the expenses. Our current payment is $1271 but we also pay $130 in HOA dues each month so really our monthly payment is $1401. Is a 6 month lease for less than $1400/month realistic?
Call around to different apartment complexes, the rates change daily. I was able to get a 4 month lease for less then $1400 (3 beds). If you are flexible with the location of the apartment you will have more to choose from.
As far as the cost of moving- if you have friends willing/able to do the heavy lifting you can rent a truck and save a bundle. Price out U-Haul, Budget, Penske see which offers the best price for what you need
One of the biggest savings might be the realization that you don't need as much house as you thought.
Friends of our did this and ended up buying a townhouse. They realized they enjoyed spending their weekends lazing about rather than doing yard work, that a smaller kitchen worked just fine, that they didn't need a family room and a living room...
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