Owning a house as a Naval Officer

[mstafford2010]

Looking for some advice from those of you who have been in the game for a while.. At what point in your career did you feel it was the right time to buy a house and stop renting? I'm sure some of you owned a home before you joined the Navy, but I'm sure there are plenty who are like me and still rent at the time of joining.

I'm soon to leave for OCS, rec'd for SNA, so I've got a few months of OCS, then a couple years of flight school, then likely some more training followed by a deployment. Since all of these things happen in a different place, it doesn't make sense to buy now.. But then again, will I ever live in one place long enough for it to "make sense?"

Just looking for the insider scoop on what some of you found to work.

Thanks

 

[81montedriver]

I think it honestly depends on your own situation. I knew guys that bought a house right after they got to Pensacola because they knew they would be there for primary at Whiting. If you get Helos you can end up being there for a good 2 years. Others I knew bought once they moved to their duty station of their first fleet tour because you are guarenteed to be there from 3-4 years. I'm in my first fleet tour and I have only rented thus far.

Some people want to buy because they feel like with renting they are throwing their money away. This is true but with renting, anything that breaks, such as an appliance, it's the owner's responsibility to pay for. My wife and I like that aspect of it. Also with buying, the positive is that you are putting your money towards the house you own, but when it comes times to sell, if you can't sell immediately you end up in the negative.

Those are several ways to look at it but again it comes down to your own personal situation.

 

[HueyHornet75]

If you are PCSing to an unfamiliar area, you can take the 10 days PTAD for househunting, but that's a quick turnaround to really get to know an area. You might find a good school and nice house, but you won't really get the gouge you need for the unspoken things-builder reputation, area issues, crime, blah blah blah. Try renting on a month-to-month basis if you intend to buy in the area (short-term or long-term). Then you can learn more about the town, the people, figure out your renting mistakes, learn from others' mistakes and then you can take your time buying what you want/need how and where you want.

 

[SynixMan]

If you are PCSing to an unfamiliar area, you can take the 10 days PTAD for househunting, but that's a quick turnaround to really get to know an area. You might find a good school and nice house, but you won't really get the gouge you need for the unspoken things-builder reputation, area issues, crime, blah blah blah. Try renting on a month-to-month basis if you intend to buy in the area (short-term or long-term). Then you can learn more about the town, the people, figure out your renting mistakes, learn from others' mistakes and then you can take your time buying what you want/need how and where you want.

^^ Awesome advice. I'm renting as I go through the land of Orange and White (aka flight school). Depending on where I end up platform wise, I plan on getting a house during the FRS/Fleet Tour. Whatever you do, get to know an area and get gouged up before making a big commitment. Some decisions take a lot to undo.

 

[scoolbubba]

We bought after I finished the FRS. Some reasons we bought:
1. Price was right. The market tanked, but showed some signs of ticking back up.
2. 8000 bucks from Uncle Hu...er...Sam. You're not going to not take free money.
3. We knew we'd be in Jax, for better or worse, at least 3-3.5 years. Making about a 200 dollar extra a month mortgage payment helps us build equity and is something we can afford as DINKs (I Highly Recommend it, if you have the means).
4. Found a nice house in a nice neighborhood on a golf course.

It's all about what works for you; talk to a realtor about your options and let them know you are currently just looking to look. A decent one (ie one who wants to make a sale eventually, not necessarily the first thing that comes along) will give you advice and then let you make your decision.

Ours was a great guy. His favorite line was "I'm just here to show you some houses and give you some advice. I'm not gonna make your mortgage payment for you, so it better be something you love enough to pay 1500 bucks a month to live in." We passed on plenty of houses before we found the one we liked, and he was completely fine with showing us multiple houses on short notice.

 

[Uncle Fester]

Market as it is, I wouldn't buy any time soon. If it's really settled out by the time you're winged, you might consider it then, but not before. Ask your instructors at the RAG when you get there; they'll have a pretty good pulse on where you might be headed and how long you'll be there. For example, an East Coast E-2 bubba has pretty good odds for staying in Norfolk for 5+ years (Rag, Sea, Shore at the FRS, Disassoc with a Boat or CAG staff at NASO, etc).

 

[Floppy_D]

Another thing to consider; when you move out of the area, you'll end up having to rent it out if you can't sell it, which means coping with property managers and hoping for a good tenant. I bought in Norfolk, and am stationed in P-cola. I tried to sell for a few months, and then resorted to renting. I ate the cost of my mortgage for a few months in conjunction with my rent here, which sucks. Also, while I am building equity, I'm taking a good loss between what rent I get and what mortgage I owe. I have several buddies back in Norfolk who can do basic maintenance for me, which really lowers the cost of mundane shit like leaky faucets or running toilets, that you'd have to pay for otherwise.

There are some duty stations you can homestead at; and I'm hoping to get back to Hampton Roads soon, and stay there. When I get the chance to break even, I'll probably sell. Granted, I bought the house as an E-5, and it just isn't in the type of neighborhood I'd like to spend the rest of my misguided life in. Hookers and blow are awesome, but not when you have to live next to them.

Knowing what I've experienced, it'll be awhile before I buy again, even after I sell. It all reverts to location^3.

 

[EM1]

I second the above.

Have a large down payment (dont fall for 100% financing "products", if the house value falls you're instantly the wrong way on the house), keep your payments as low as possible, and make sure that if need be the rental rates for the area will cover your mortgage payments if you move and can't sell.

 

[MasterBates]

I bought a house in JAX when I was almost done with the RAG (done enough to have written orders to an East Coast squadron).

Paid $115k in 2003. Refied and cashed out $25k to pay off some of the Manatee's bills in 2006. Divorced and lost said house to Manatee in 06, just bought house back from said aquatic mammal yesterday for $10k (I still have the mortgages)

House "peaked" at $165k or so in 06, and is at $95k and falling right now. Thankfully even with the refi I still have a mortgage below $900 PITI on the 1st and 2nd combined. I MIGHT be able to rent it for what the mortgage is and property manager costs. MAYBE.

House here in Norfolk, I bought near the bottom of the market. I was never going to be able to buy oceanfront (okay, bayfront but I can't see the other side) property not in BFE again for under $200k so I jumped on it, and I was about Puma'd out.

This house, I can easily rent out as a furnished vacation place and cover the mortgage with 70% occupancy Memorial to Labor Day. Any off season rental is bonus. (or I could just make it a plain rental.. we'll see how both options look when I leave Norfolk)

Always have a PLAN for what you will do with the property when you leave town. Selling at a profit, in a reasonable time is not always going to be an option. I would never get into a property that would bankrupt you if it sits empty for 3-4 months. I could have bought a nicer/larger condo on my street for twice the money, but I like having a smaller, yet detached house, and the more affordable payment if/when I leave Norfolk.

 

[mstafford2010]

I want to thank you all for your info/stories -- this is very eye opening, and it's obvious that this isn't something I'm going to be jumping into at light speed.. location, current market, personal situation... all things that I don't have much say over right now (OCS just around the corner and all).

Going to give it some time,

Thanks again

 

[Floppy_D]

Good call, wait it out. Hasty decisions are expensive.

 

[statesman]

3. We knew we'd be in Jax, for better or worse, at least 3-3.5 years. Making about a 200 dollar extra a month mortgage payment helps us build equity and is something we can afford as DINKs (I Highly Recommend it, if you have the means).

What is this?

 

[magnetfreezer]

What is this?

Double Income No Kids

 

[Pags]

Making about a 200 dollar extra a month mortgage payment helps us build equity and is something we can afford as DINKs (I Highly Recommend it, if you have the means).

While schoolbubba is talking about making larger payments, make sure that your mortgage payments can be paid by YOUR paycheck and don't rely on your wife's income. If you move, your spouse won't always have a job right away. Or if you have kids, your wife won't always go right back to work.

I still list rushing to buy a home because "real estate is always a good investment" as one of the dumbest decisions of my life. If the housing market takes a huge hit after you buy (like it did) and then you have to move, your house is now just an albatross around your neck for the next couple of years. At my current duty station I'm now renting because of my now rental property. Sure, it'll never be MY house, but it's nice to know when I leave there's nothing to worry about.

 

[Floppy_D]

I still list rushing to buy a home because "real estate is always a good investment" as one of the dumbest decisions of my life. If the housing market takes a huge hit after you buy (like it did) and then you have to move, your house is now just an albatross around your neck for the next couple of years. At my current duty station I'm now renting because of my now rental property. Sure, it'll never be MY house, but it's nice to know when I leave there's nothing to worry about.

^This, and right there with ya.