Seriously consider renting. Post-divorce is a time when you need, above all, some flexibility. I know you think you need stability, but buying a house doesn’t really give you stability. Unforseen things come up and may force you to move regardless of your housing situation. In fact, if you are renting and lose your job, you may be able to stay in the house, but if you are paying a mortgage and you lose your job, you may have to sell. You just never know what will happen, especially in these economic times.
Even if rents are a little higher than a mortgage payment, you don’t force yourself into a situation that may restrict your options later.
Renting – means you can check-out of the rental and buy any time.
Buying – means you can only sell and change your housing situation if the market goes up. If the market goes down, you are losing money and may be forced to sell after taking a loss.
If prices are headed up for sure, buying makes more sense. Not only do you make money on appreciation, but you aren’t locked into the house because you can sell it for a gain, which is easy.
But when there is some suspicion that prices can come down, renting really makes alot of sense.
Also, you can close a rental deal in a week, vs. a purchase that could take time, energy and stress.
Renting gives you time to execute that short sale which could land you in a nice house for less.
Consider as a single parent, doing a remodel is much more challenging that it is with two parents. You’ll be unusually short of time for the next year, I’d guess.
Waiting to purchase in this market is just a good thing to do, and you’ll need a year or two of waiting. You’ll be so much happier buying later rather than earlier.
It also gives you time to evaluate your decision – condo vs. house. Rent a condo for a while. If you hate it, buy a house. If you love it, buy a condo.
