top of page

Life Coaching with M Group

Public·49 members

Buying A House In The Army WORK


For military personnel with three- or four-year assignments, buying a home rarely makes sense. You'd be smarter to live below basic allowance for housing, and save the difference to build a chunky down payment and then buy when the time is really right for you.




buying a house in the army



I'm one year into my four-year contract in the Army. I currently live off-base, but hate wasting my money on rent. I'm thinking about buying, especially since interest rates are so low and real estate prices just keep climbing. I don't have much cash, but I don't need a down payment for a Veterans Affairs loan. I figure if I stay in the Army and have to move, I can either sell or rent it out. My dad is all in favor of buying now but my mom says I should wait until I leave the military. What do you think?


Renting can make a lot of sense if you're not going to be in the same place for at least five to seven years. If you stay in a home for many years, the substantial upfront costs of buying a home are spread out over a long time. Not so if you're forced to move soon. Plus, as we saw during the Great Recession ten years ago, homes don't always appreciate in value, and you wouldn't want to be forced to sell in a downturn.


As an active-duty service member, your basic allowance for housing (BAH) and for subsistence (BAS) also come into play. Whether you rent or buy, it's possible to have allowances left over each month to pay for things like utilities and other household expenses or even savings.


Homebuyers in the military can have a better buying experience if they ask themselves some key questions before buying. We talked to experts, including some military lifers, to pull together a list of the top questions to answer to make the best decision for you.


I received the email below from a prior-enlisted active duty Army officer who wants to use his USAA Career Starter Loan to buy a house. Way back in 2008 I received my CSL and invested $15,000 of it in low cost, diversified ETFs. The other $10,000 I put into 1-5 year CDs, which were then paying more than the loan interest rate. After I graduated I sold the ETFs and paid off one of my many student loans, which was at 6% interest.


We bought a condo at our first duty station and now we're trying to sell it before we PCS. We did get a good deal on it when we bought it and should make money when we sell, but the risk of not-selling or of another 2008 market crash happening is all too real. The break even point for renting vs. buying is usually 5-7 years. Since you'll be PCSing every 3-4 years it's probably less risky and more advantageous to just rent until you are close to getting out or already separated and then buy where you want to live, not where the Army tells you to live.


If you do put the USAA loan into the home, you're still financing the full 94k, your just breaking it up into a 69k VA loan and a 25k USAA CSL. Your payment for the first five years will be $468 PITI + $500 USAA CSL payment, so $968 total per month. Like you said, if USAA isn't offering a lower rate than your mortgage rate, it doesn't make sense to borrow that and put it into the house. I would focus on your higher student loan rate.


Also, look into the 5/1 ARM (adjustable rate mortgage) option. The payments and interest will probably be much lower while your living in the house and rates are at historic lows. If rates do start to climb back up you could refinance into a 15 or 30 year mortgage.


All that being said, I would advise a lot of caution at buying your first rental property at your first duty station. With a 30 year mortgage the payments would definitely be manageable, but think of the extra costs involved in renting or selling the property when you PCS. Just comparing the cost of renting vs. the PITI of owning a home isn't a fair comparison, because their's a lot of maintenance and risk involved in buying a home. Vacancies are a real threat and can eat into your profit quickly.


Well Spencer, that is what I have for now. Hope this helps and I will keep you posted as to the final transaction of the home I end up buying. As of now Navy Fed is offering VA loans as low as 2.75% (if you buy points) on a 15 year mortgage. I am electing to go with the 15 yr at 2.75% (purchasing price for lower interest is .25% about $235). And yes I am doing a FSBO transaction because it make good financial sense and I do not mind the added work/research required.


Homebuying is a complex and carefully planned process for any family. Leverage your network and talk to other military families you know who purchased a home on active duty to find out what they did right and what they would do differently.


Thankfully, long distance home buying has become somewhat easier for military buyers as well as civilians as many lenders have improved their online application processes in response to stay at home orders. Real estate agents have also adopted virtual showings as an integral part of their services.


Being stationed overseas, in particular, means you are relinquishing control over many aspects of the home buying process and leaving the heavy lifting to a real estate agent. Things like touring homes, checking out the neighborhood, checking on property values, and comparing VA and non-VA approved homes are tasks you would normally do on your own.


Aspiring officers are trained at four Salvation Army colleges in the United States, including one in Rancho Palos Verdes. Officers practice Christianity by running programs to aid the needy. They are paid small salaries and provided houses that the Salvation Army owns across the country.


The Salvation Army bought two of the Rancho Palos Verdes homes in 2007 for $940,000 each. The two houses are within a few blocks of neighboring San Pedro, where similar properties sell for considerably less.


When two of the Santa Monica homes became worn by age, the Salvation Army paid to bulldoze them and rebuild from scratch. One project on Pearl Street cost more than $500,000 to rebuild in 2004. That decision made better business sense than selling and buying a different home, Leslie said.


A tentative proposal is due in January and Corps officials say will likely recommend a range of options, including massive floodgates across the Miami and Little rivers and the Biscayne Canal. Surge barriers, flood walls and restored mangroves could also be in the mix. The agency has also identified five flood-prone areas where they may suggest elevating buildings or buying out owners.


Although the Army provides soldiers with on-base housing, some service members may wish to live off base. Although duty postings may require multiple moves during the course of an Army career, some soldiers may nevertheless wish to make a long-term commitment to a particular area and purchase a home. Although the Army normally does not provide soldiers with money specifically to buy a house, it does offer special pay that can be used for housing, whether the soldier is renting or buying.


"So, for example, I started a property management company in 2020," Davis says. "It's been really hard to find the same amount of fix-and-flip opportunities, although not impossible. The property management business took focus while some of my investments slowed down. As the real estate market slows down, it might be a good buying opportunity. So things are definitely being changed in and out."


However, when you take the leap from thinking about buying a house to actually shopping for and financing a home, the specialized knowledge and experience of a real estate agent is essential. They can help you find and purchase the home of your dreams on terms that work best for you. Here are just a few of the roles real estate agents can fill.


The story concerns the battle between a young woman and an immigrant Iranian family over the ownership of a house in Northern California, which ultimately leads to the destruction of five lives. The film was nominated for three Academy Awards: Best Actor (Ben Kingsley), Best Supporting Actress (Shohreh Aghdashloo), and Best Original Score (James Horner).


Abandoned by her husband, recovering drug addict Kathy Nicolo, living alone in a small house near the San Francisco Bay Area, ignores eviction notices erroneously sent to her for nonpayment of business taxes. Assuming the misunderstanding was cleared up, she is surprised when Sheriff's Deputy Lester Burdon arrives to forcibly evict her. Telling Kathy that her home is to be auctioned off, Lester feels sympathy for her, helps her move out, and advises her to seek legal assistance to regain her house.


Former Imperial Iranian Army colonel Massoud Behrani, who fled his homeland with his family, now lives in the Bay Area working multiple menial jobs. Living beyond his means, he maintains the façade of a respectable businessman so as not to shame his wife Nadereh, son Esmail, and daughter Soraya. He buys Kathy's house for a quarter of its actual value, intending to improve and sell it. Kathy is evicted from the motel she is staying in. With nowhere else to go, she spends the night in her car. Seeing the renovations and how the Behranis have settled in makes her determined to get her house back and she finds an attorney, Connie Walsh, who assures her that because of the county's mistake, they will return Massoud's money and restore the house to her.


Massoud, having already spent money on improving the house, is unwilling to accept anything less than the higher value of the property, which the county refuses to pay. Connie advises Kathy that her only option is now to sue the county, though it will take months. Kathy tries to convince Massoud to sell back the house; he too advises her to sue the county and promises to sell her the house back if she comes up with the money, but she retaliates by beginning to harass him and his family in front of potential buyers. Desperate for help, Kathy falls easily into an affair with Lester, who abandons his wife and children and fashions himself as Kathy's protector. Under a pseudonym, Lester threatens to have Massoud and his family deported if he refuses to sell the house back to the county. Aware that Lester was acting on Kathy's behalf, Massoud reports this to Internal Affairs, who severely reprimand Lester, and furiously warns Kathy to leave his family alone. Kathy calls her brother Frank for help, but cannot bring herself to admit that she is homeless. 041b061a72


About

Welcome to the group! You can connect with other members, ge...
Group Page: Groups_SingleGroup
bottom of page