I'm PCSing to fort wainwright Alaska. I was wondering if anyone had insight on if I should buy or rent on post. We are unfamiliar with the harsh winters and my wife is a little worried about ownership in this environment. Also If anyone has experience in obtaining good cash flow properties and if the numbers make sense in Fairbanks. I'm very interested in obtaining a Multi-Family with my VA loan.
I'm PCSing to fort wainwright Alaska. I was wondering if anyone had insight on if I should buy or rent on post. We are unfamiliar with the harsh winters and my wife is a little worried about ownership in this environment. Also If anyone has experience in obtaining good cash flow properties and if the numbers make sense in Fairbanks. I'm very interested in obtaining a Multi-Family with my VA loan.
If you are going to live there for 20 years buy a house.
If less than that, rent.
For instance, you buy a $225,000 house. Your VA loan with zero down. Then 3 years in you get sent to, well . . . anywhere, and you have to sell. So, 6% immediately comes off the top for real estate agent, that's $13,500 plus closing $1500 costs, plus 3 months payments since you couldn't get it sold quickly enough, that's $4500 plus you sell it FHA and make 2% concession so another $4500 so your cost of sale is about $24,000. Your payoff is $219,951 so you have about $5,049 in equity. You take the cost of sale of $24,000 minus $5,049 in equity which gets applied, then you have to come to closing with $18,951. Do you have $18,951 in the bank you want to spend to sell your house? I'd suggest instead you take that $18,951 and buy your wife a really nice fur coat (we're talking Fairbanks here, it can get kind of chilly @ -40) and buy her a trip to Hawaii instead. Happy wife, happy life.