patrick.net

StoutFiles says

B) Buy a condo now at 1.5x my yearly income. Sell in four years and then Plan A). 20% down payment.

(B) seems like the worst option. If you only plan to live there four years, you will be paying huge transaction costs for a "starter home." This only makes sense if the appreciation in 4 years is certain to dwarf transaction costs, and therefore it only makes sense during booms. It doesn't make sense now, when prices could still drop or might stay flat for several years.

What city?

swebb says

Buying a house with a mortgage isn't always a bad decision.

Yes it is when the house value is upside down.

I would do A

but I agree with what people are saying about no debt is pretty ideal.
The only way I would rent is if it will allow you so save up enough in 4 years to buy a house with no mortgage.

otherwise option A

What about interest rates? They are the lowest in a long time.

Anyone thing they are headed up?

bubblesitter says

swebb says

Buying a house with a mortgage isn't always a bad decision.

Yes it is when the house value is upside down.

That may be an example of when it is a bad decision, which my statement allows for. Maybe I should have said "buying a house with a mortgage is sometimes a good decision." ?

And being upside down isn't the main factor, to my mind. If you pay less than equivalent rent, and live in it for 30 years...with a final value of $0, you still come out ahead.

Malkovich says

What about interest rates? They are the lowest in a long time.

http://research.stlouisfed.org/fred2/graph/?g=1ML

swebb says

If you pay less than equivalent rent

and where would that be?

Even WHEN housing hits bottom, do you anticipate an immediate or significant rate of appreciation ? Base your decision on were you will work, where you will raise your children. There are several online "Buy or Rent calculators" if you want to base your decision financially.