Situation analysis (Rent vs. buy) - Zillow Real Estate Advice

Rent: $450 (I rent a room in a group house)
Utilities $130
Total current monthly cost $580.

Projected rate with 20% down: 3.9%
Monthly Cost (PITI only): $1250 approximately

You would be paying more than 2 times the cost of rent including utilities. You would probably find that utilities cost more for a whole house than in a smaller apartment. If we remove the utilities from the equation you would be paying around 3 times as much to buy as to rent. By renting you have zero risk of emergency repair expenses arriving. The landlord fixes any problems. When you buy a house if the roof needs replacing, or the furnace dies, or the electrical system dies, or the plumbing leaks, or the foundation moves, or a window breaks you have to pay to repair or replace it.

You may plan to rent out a room to help cover expenses but have you included the extra costs involved in having a renter? The electric bill will go up a fair amount. They could damage the house. They may even refuse to pay the rent then you not only have months with no rental income and you have to spend more money to get them legally evicted. I am not saying not to rent a room I am simply saying look at both potential results the good and the bad one.

If I was living in the D.C. area I would be tempted to wait until after the elections to buy. You have no idea just how the budget will change. D.C. is held together financially by government spending, If that cuts back a fair amount house prices would go down.

One important question you need to answer is why do you want to buy a house? If it is to build up equity I would keep renting. If there are other reasons then you have to weigh the costs and compare that to the benefits.

Perhaps the information in the links below can be helpful.
"Does it make more sense to buy, or to rent? Here is the way to find out for sure."

"Why rent if you could buy for less money? Valid reasons inside."

"Do low interest rates really make it a good time to buy a house?"

"What should I watch out for when choosing a home to buy so that I don't jump into a money pit?"

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