The 5-year rule of thumb about buying a house--what's your opinion/experience?

[raccoon]

(Disclaimer: I am not even thinking of buying a house for speculative reasons.)

[jp11]

1. Never heard of this, so no idea.

Good luck with whatever this is about.

[HereSince1628]

2. I've never heard of a 5-year rule for buying a house.

In the wayback, the rough estimate of an appropriate cost for a home was 3 times annual household income.

That worked in some parts of the country...

[Lochloosa]

3. Google is your friend. My opinion/experience is you should be prepared to stay in a home at

least 5 years.

http://moneyning.com/housing/the-five-year-rule-for-buying-a-house/

[goodword]

4. Don't Know Either

Not sure what this is, but I'll tell you what's worked for me. While I was married we always bought homes (only 2) that could be afforded on ONE (yes, one) salary. No, we never lived in a McMansion. We didn't have granite countertops or stainless steel appliances. Our first home was a fixer-upper and we made it a comfortable and affordable place to live.

We moved to another state and again bought another modest home on one salary. A few years later we divorced but I was able to afford to keep the house and raise my children in it. I'm still in that house and I'm 8 years away from paying it off.

I think a lot of people buy beyond their means, then when some difficulties arise the house is the first thing they can no longer afford. Always keep in mind, the bigger the house the more you pay to heat and cool it. The more space you need to keep clean. The more spread out your family becomes.

I've never lived by anyone's 'financial' rules except my own. I know what I can afford and I've always lived beneath that so I don't have to go to bed at night and worry about what I owe.

[KurtNYC]

5. Renting is usually a great deal compared to buying

Buying may look cheaper but only if you have never "owned" a home. Property taxes are terrible and are going higher as local governments scramble for revenue. A house has virtually limitless ways to cost you money and not much of what you pay on the mortgage in the first 5 years actually counts toward equity.

[HooptieWagon]

9. No longer true in Florida.

Rents have continued to increase, while property valves are half what they were. Homestead exemption is 50K, which reduces taxes considerably. On rentals there is no exemption, and taxes and insurance are passed along to the tennant. Right now, buying is much cheaper than renting... maybe even by half.

[2pooped2pop]

6. forget buying a house

the bank will find a way to get it. If you do buy one, put it in a trust.

[Nye Bevan]

7. A good rule if a nice, clean rental that suits your needs is available.

Everyone underestimates the true cost of owning a home.

[Mr Dixon]

8. IMO

Renting is the best way to go, the Banks are crooks enough said.