Should I buy or rent? New graduate student at UCSD

[Raybyrnes]

One consideration with respect to the financing is the fact that it changes your eligibility for federal financial aid. By being house rich and saving poor you are eligible for far greater assistance in the form of grants and Sbsidized Federal Stuent Loans. Under the federa Loan Program you are eligible for up to 8500 in subsidized funding each year of school and up to 12000 om unsubsidized. The larger your saving are the less you would be eligible for.

Additionally you could simultaneously open up a HELOC on the home so that you still ahve access o the capital if needed.

If you are considering an entrpreneurial path the ability of borring 20500 dollars now with extremely easy terms and conditions might give you well need capital for when you graduate.

Just a consideration.

[rEQ]

Thanks all for the comments. To clarify a few points, I am committed to finishing a PhD. To make myself sound stupid, I signed a scholarship deed which basically deeds my life out to this company (6 years of indentured service), in exchange for full funding for undergrad through grad school. They will be paying be 50K a year during grad sch in addition to sch fees and stuff so yeah. Btw I’m not an economics/business student but an engineer.

Grad school housing is notoriously hard to come by. Currently the wait list is between 3-4 years so that basically kills everything. Median cost of renting a 2 bed pad is $1400 for a decent place near school.

Noone, good point about the cost of home ownership vs renting. This are the way I figure the numbers.

HOA over 5 years (200/mth) : 12k
Insurance (400/yr) : 2k
Property taxes : 9k
Maintenance : 5k
Investment opportunity cost : 21k (2% from a money market acct/fd, I’m no financial savant)
Comission cost : 13k (assuming a 10% recovery in the property market in 5 years)
Cost of ownership = 41k (offset by 20k appreciation)
Cost of rental = 84k

This 200k represents my easily disposable assets, and I have other assets currently under investment.

FormerSanDiegan, I don’t think I’d be able to charge $800 per person. Market rates are about 600-700 per pax. I’m currently not too keen on taking up a loan due to mobility reasons. I’ll need to uproot after grad school, and I don’t want a loan from grad sch days to come back haunting me when I start my new job.

Once again thanks all for the helpful comments! (btw I cant believe I got myself into this whole grad sch business >.< should have followed everyone into banking or cunsultancy.. =p )

[rEQ]

Thanks all for the comments. To clarify a few points, I am committed to finishing a PhD. To make myself sound stupid, I signed a scholarship deed which basically deeds my life out to this company (6 years of indentured service), in exchange for full funding for undergrad through grad school. They will be paying be 50K a year during grad sch in addition to sch fees and stuff so yeah. Btw I’m not an economics/business student but an engineer.

Grad school housing is notoriously hard to come by. Currently the wait list is between 3-4 years so that basically kills everything. Median cost of renting a 2 bed pad is $1400 for a decent place near school.

Noone, good point about the cost of home ownership vs renting. This are the way I figure the numbers.

HOA over 5 years (200/mth) : 12k
Insurance (400/yr) : 2k
Property taxes : 9k
Maintenance : 5k
Investment opportunity cost : 21k (2% from a money market acct/fd, I’m no financial savant)
Comission cost : 13k (assuming a 10% recovery in the property market in 5 years)
Cost of ownership = 41k (offset by 20k appreciation)
Cost of rental = 84k

This 200k represents my easily disposable assets, and I have other assets currently under investment.

FormerSanDiegan, I don’t think I’d be able to charge $800 per person. Market rates are about 600-700 per pax. I’m currently not too keen on taking up a loan due to mobility reasons. I’ll need to uproot after grad school, and I don’t want a loan from grad sch days to come back haunting me when I start my new job.

Once again thanks all for the helpful comments! (btw I cant believe I got myself into this whole grad sch business >.< should have followed everyone into banking or cunsultancy.. =p )

[rEQ]

Thanks all for the comments. To clarify a few points, I am committed to finishing a PhD. To make myself sound stupid, I signed a scholarship deed which basically deeds my life out to this company (6 years of indentured service), in exchange for full funding for undergrad through grad school. They will be paying be 50K a year during grad sch in addition to sch fees and stuff so yeah. Btw I’m not an economics/business student but an engineer.

Grad school housing is notoriously hard to come by. Currently the wait list is between 3-4 years so that basically kills everything. Median cost of renting a 2 bed pad is $1400 for a decent place near school.

Noone, good point about the cost of home ownership vs renting. This are the way I figure the numbers.

HOA over 5 years (200/mth) : 12k
Insurance (400/yr) : 2k
Property taxes : 9k
Maintenance : 5k
Investment opportunity cost : 21k (2% from a money market acct/fd, I’m no financial savant)
Comission cost : 13k (assuming a 10% recovery in the property market in 5 years)
Cost of ownership = 41k (offset by 20k appreciation)
Cost of rental = 84k

This 200k represents my easily disposable assets, and I have other assets currently under investment.

FormerSanDiegan, I don’t think I’d be able to charge $800 per person. Market rates are about 600-700 per pax. I’m currently not too keen on taking up a loan due to mobility reasons. I’ll need to uproot after grad school, and I don’t want a loan from grad sch days to come back haunting me when I start my new job.

Once again thanks all for the helpful comments! (btw I cant believe I got myself into this whole grad sch business >.< should have followed everyone into banking or cunsultancy.. =p )

[rEQ]

Thanks all for the comments. To clarify a few points, I am committed to finishing a PhD. To make myself sound stupid, I signed a scholarship deed which basically deeds my life out to this company (6 years of indentured service), in exchange for full funding for undergrad through grad school. They will be paying be 50K a year during grad sch in addition to sch fees and stuff so yeah. Btw I’m not an economics/business student but an engineer.

Grad school housing is notoriously hard to come by. Currently the wait list is between 3-4 years so that basically kills everything. Median cost of renting a 2 bed pad is $1400 for a decent place near school.

Noone, good point about the cost of home ownership vs renting. This are the way I figure the numbers.

HOA over 5 years (200/mth) : 12k
Insurance (400/yr) : 2k
Property taxes : 9k
Maintenance : 5k
Investment opportunity cost : 21k (2% from a money market acct/fd, I’m no financial savant)
Comission cost : 13k (assuming a 10% recovery in the property market in 5 years)
Cost of ownership = 41k (offset by 20k appreciation)
Cost of rental = 84k

This 200k represents my easily disposable assets, and I have other assets currently under investment.

FormerSanDiegan, I don’t think I’d be able to charge $800 per person. Market rates are about 600-700 per pax. I’m currently not too keen on taking up a loan due to mobility reasons. I’ll need to uproot after grad school, and I don’t want a loan from grad sch days to come back haunting me when I start my new job.

Once again thanks all for the helpful comments! (btw I cant believe I got myself into this whole grad sch business >.< should have followed everyone into banking or cunsultancy.. =p )

[rEQ]

Thanks all for the comments. To clarify a few points, I am committed to finishing a PhD. To make myself sound stupid, I signed a scholarship deed which basically deeds my life out to this company (6 years of indentured service), in exchange for full funding for undergrad through grad school. They will be paying be 50K a year during grad sch in addition to sch fees and stuff so yeah. Btw I’m not an economics/business student but an engineer.

Grad school housing is notoriously hard to come by. Currently the wait list is between 3-4 years so that basically kills everything. Median cost of renting a 2 bed pad is $1400 for a decent place near school.

Noone, good point about the cost of home ownership vs renting. This are the way I figure the numbers.

HOA over 5 years (200/mth) : 12k
Insurance (400/yr) : 2k
Property taxes : 9k
Maintenance : 5k
Investment opportunity cost : 21k (2% from a money market acct/fd, I’m no financial savant)
Comission cost : 13k (assuming a 10% recovery in the property market in 5 years)
Cost of ownership = 41k (offset by 20k appreciation)
Cost of rental = 84k

This 200k represents my easily disposable assets, and I have other assets currently under investment.

FormerSanDiegan, I don’t think I’d be able to charge $800 per person. Market rates are about 600-700 per pax. I’m currently not too keen on taking up a loan due to mobility reasons. I’ll need to uproot after grad school, and I don’t want a loan from grad sch days to come back haunting me when I start my new job.

Once again thanks all for the helpful comments! (btw I cant believe I got myself into this whole grad sch business >.< should have followed everyone into banking or cunsultancy.. =p )

[feraina]

Wow, the company deal is pretty sweet! Full ride through undergrad, plus a much better stipend than the typical PhD student. I hope you like your PhD area. PhD is super tough even if you love your work; it becomes just about impossible if your heart isn’t in it. Good luck!

On the other hand, instead of thinking of your 6 years of commitment as indentured service, I’d think of it as a secure job, especially as they’re probably paying much more than what the average junior faculty make, not to mention the academic jobs are hellishly impossible to get.

Anyway, since I was one of the “lucky” people who did just land a tenure-track position at UCSD, I’m paying close attention to this thread to see what you house market junkies think about this area. I have similar financial circumstances as rEQ. We want a 2bd condo, or a modest house on a modest lot. BTW, there’s no subsidy for faculty housing, and my husband is not up to rooming with grad students/postdocs. We plan to have kids at some point but probably no school-age kids in the next 6-8 years. Oh, and I’m not in economics or finance, I study decision-making. 😉

What do you all think would be the best time to buy into the UTC condo market? The N. Clairemont area seems a little shady. How are the Scripps Ranch & Pansquitos neighborhoods? What about Ramona? What do you expect the PPSF to bottom out at for these respective areas?

Thanks in advance for your input!

[feraina]

Wow, the company deal is pretty sweet! Full ride through undergrad, plus a much better stipend than the typical PhD student. I hope you like your PhD area. PhD is super tough even if you love your work; it becomes just about impossible if your heart isn’t in it. Good luck!

On the other hand, instead of thinking of your 6 years of commitment as indentured service, I’d think of it as a secure job, especially as they’re probably paying much more than what the average junior faculty make, not to mention the academic jobs are hellishly impossible to get.

Anyway, since I was one of the “lucky” people who did just land a tenure-track position at UCSD, I’m paying close attention to this thread to see what you house market junkies think about this area. I have similar financial circumstances as rEQ. We want a 2bd condo, or a modest house on a modest lot. BTW, there’s no subsidy for faculty housing, and my husband is not up to rooming with grad students/postdocs. We plan to have kids at some point but probably no school-age kids in the next 6-8 years. Oh, and I’m not in economics or finance, I study decision-making. 😉

What do you all think would be the best time to buy into the UTC condo market? The N. Clairemont area seems a little shady. How are the Scripps Ranch & Pansquitos neighborhoods? What about Ramona? What do you expect the PPSF to bottom out at for these respective areas?

Thanks in advance for your input!

[feraina]

Wow, the company deal is pretty sweet! Full ride through undergrad, plus a much better stipend than the typical PhD student. I hope you like your PhD area. PhD is super tough even if you love your work; it becomes just about impossible if your heart isn’t in it. Good luck!

On the other hand, instead of thinking of your 6 years of commitment as indentured service, I’d think of it as a secure job, especially as they’re probably paying much more than what the average junior faculty make, not to mention the academic jobs are hellishly impossible to get.

Anyway, since I was one of the “lucky” people who did just land a tenure-track position at UCSD, I’m paying close attention to this thread to see what you house market junkies think about this area. I have similar financial circumstances as rEQ. We want a 2bd condo, or a modest house on a modest lot. BTW, there’s no subsidy for faculty housing, and my husband is not up to rooming with grad students/postdocs. We plan to have kids at some point but probably no school-age kids in the next 6-8 years. Oh, and I’m not in economics or finance, I study decision-making. 😉

What do you all think would be the best time to buy into the UTC condo market? The N. Clairemont area seems a little shady. How are the Scripps Ranch & Pansquitos neighborhoods? What about Ramona? What do you expect the PPSF to bottom out at for these respective areas?

Thanks in advance for your input!

[feraina]

Wow, the company deal is pretty sweet! Full ride through undergrad, plus a much better stipend than the typical PhD student. I hope you like your PhD area. PhD is super tough even if you love your work; it becomes just about impossible if your heart isn’t in it. Good luck!

On the other hand, instead of thinking of your 6 years of commitment as indentured service, I’d think of it as a secure job, especially as they’re probably paying much more than what the average junior faculty make, not to mention the academic jobs are hellishly impossible to get.

Anyway, since I was one of the “lucky” people who did just land a tenure-track position at UCSD, I’m paying close attention to this thread to see what you house market junkies think about this area. I have similar financial circumstances as rEQ. We want a 2bd condo, or a modest house on a modest lot. BTW, there’s no subsidy for faculty housing, and my husband is not up to rooming with grad students/postdocs. We plan to have kids at some point but probably no school-age kids in the next 6-8 years. Oh, and I’m not in economics or finance, I study decision-making. 😉

What do you all think would be the best time to buy into the UTC condo market? The N. Clairemont area seems a little shady. How are the Scripps Ranch & Pansquitos neighborhoods? What about Ramona? What do you expect the PPSF to bottom out at for these respective areas?

Thanks in advance for your input!

[feraina]

Wow, the company deal is pretty sweet! Full ride through undergrad, plus a much better stipend than the typical PhD student. I hope you like your PhD area. PhD is super tough even if you love your work; it becomes just about impossible if your heart isn’t in it. Good luck!

On the other hand, instead of thinking of your 6 years of commitment as indentured service, I’d think of it as a secure job, especially as they’re probably paying much more than what the average junior faculty make, not to mention the academic jobs are hellishly impossible to get.

Anyway, since I was one of the “lucky” people who did just land a tenure-track position at UCSD, I’m paying close attention to this thread to see what you house market junkies think about this area. I have similar financial circumstances as rEQ. We want a 2bd condo, or a modest house on a modest lot. BTW, there’s no subsidy for faculty housing, and my husband is not up to rooming with grad students/postdocs. We plan to have kids at some point but probably no school-age kids in the next 6-8 years. Oh, and I’m not in economics or finance, I study decision-making. 😉

What do you all think would be the best time to buy into the UTC condo market? The N. Clairemont area seems a little shady. How are the Scripps Ranch & Pansquitos neighborhoods? What about Ramona? What do you expect the PPSF to bottom out at for these respective areas?

Thanks in advance for your input!

[rEQ]

Yeah feraina, the company deal is really sweet. We all like to complain and moan about it from time to time but the resources, guidance and freedom over our jobs that they give us is amazing. Been working here for a year since graduation and will be headed back for further studies in a bit.

In response to earlier posts, my annual costs of rental is down to 11k. Factoring cost of ownership with HOA, insurance, taxes etc, the per annum differential between renting and owning is only 4k, an amount that could be easily wiped out with a further downturn in the market, so my current position is to wait for 6 months to a year before buying. Then again is a property comes along with a large enough discount over current market valuations, who knows..

[rEQ]

Yeah feraina, the company deal is really sweet. We all like to complain and moan about it from time to time but the resources, guidance and freedom over our jobs that they give us is amazing. Been working here for a year since graduation and will be headed back for further studies in a bit.

In response to earlier posts, my annual costs of rental is down to 11k. Factoring cost of ownership with HOA, insurance, taxes etc, the per annum differential between renting and owning is only 4k, an amount that could be easily wiped out with a further downturn in the market, so my current position is to wait for 6 months to a year before buying. Then again is a property comes along with a large enough discount over current market valuations, who knows..

[rEQ]

Yeah feraina, the company deal is really sweet. We all like to complain and moan about it from time to time but the resources, guidance and freedom over our jobs that they give us is amazing. Been working here for a year since graduation and will be headed back for further studies in a bit.

In response to earlier posts, my annual costs of rental is down to 11k. Factoring cost of ownership with HOA, insurance, taxes etc, the per annum differential between renting and owning is only 4k, an amount that could be easily wiped out with a further downturn in the market, so my current position is to wait for 6 months to a year before buying. Then again is a property comes along with a large enough discount over current market valuations, who knows..

[rEQ]

Yeah feraina, the company deal is really sweet. We all like to complain and moan about it from time to time but the resources, guidance and freedom over our jobs that they give us is amazing. Been working here for a year since graduation and will be headed back for further studies in a bit.

In response to earlier posts, my annual costs of rental is down to 11k. Factoring cost of ownership with HOA, insurance, taxes etc, the per annum differential between renting and owning is only 4k, an amount that could be easily wiped out with a further downturn in the market, so my current position is to wait for 6 months to a year before buying. Then again is a property comes along with a large enough discount over current market valuations, who knows..

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