I leave for basic training in 2 weeks. I have a wife and 1-month-old son, and once I got out of my secondary school I was planning to buy a house using funds saved during training / VA home loan. Is this feasible as a junior Marine or is renting / living in on-base housing a better move? I just hate the idea of renting, even if my house doesnt appreciate I still feel like some equity is better than none. That being said I'm young and naive so maybe the associated costs outweigh the benefits.
Housing options as a junior Marine with a family
byu/jrschoen inMilitaryFinance
Posted by jrschoen
1 Comment
I love renting as a military family. I know exactly what we’ll pay each month for rent (rent and utilities if we’re on base). If the dishwasher stops working or the roof is leaking, it’s not my responsibility to fix or pay for. If we PCS, I give notice, pay rent for the next month, and move out. The move-in costs to rent are usually lower than closing costs on a purchase and are $0 if we live on base.
Buying works for some people, but you need to have some savings for upfront costs and maintenance. A rule of thumb is that you need to live somewhere for 5 years to have enough equity make back your closing costs on the purchase and sale. You need an exit plan for if you need to move and are underwater. Discuss with your spouse how she feels about doing or arranging maintenance while possibly solo parenting a toddler for extended periods.
Junior enlisted BAH with dependents is meant to cover most of the average rent and utilities on a 2 bedroom apartment or condo. That might be enough to cover a mortgage in some areas, but it’s definitely not in others. Some people choose to live farther from base to find cheaper homes to purchase, but don’t forget about commuting costs and time. In some locations, we’ve been able to be a one car family by living on base or renting very close to base.