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Case Study
  • Ed and Marlene Brooks are deciding should they rent or buy at their new station.

    First, I would ask them about their decision to buy convention. Also, I would do a traditional needs analysis to determine their buying motivation and longterm goals. Then, get them preapproved or at the minimum talk with a qualified lender to verify their buying power.

    I would recommend that the couple use their VA option since their last purchase was a conventional loan. The interest rates and prices are low which would help them balance a payment with their BAH rate. Also, gathering information on the average rental rates in the area would give the couple peace of mind that if they had to PCS again in 2-3 years that they could rent their property if need be.
  • each case scenario takes different productive questions. if the couple near retirement, we need to uncover where they see themselves living...near their children or near contract opportunities since he will continue to work as a contractor with DOD post retirement. With the couple with 3 kids, I would discuss the needs for the kids, activities, community to best uncover their priorities to Gert kids acclimated and on a schedule to provide structure. For the brooks, we need to love at the value of their current mortgage and look at the rate and term to see if it is equitable to rent or sell their home. In the meantime, I would utilize RPR to gain a better financial understanding if it is best to rent or own. Maybe they rent now until they sell their home, once it sells we can see how much cash they have to put down on a home. I would also find out if they expect to save money now they have 2 BAH and maybe they could rent until they get enough cash for a down payment
  • The couple approaching their final PCS move before retirement already live in the perfect location that allows them to be near family and possible government contractor work in the DC area. BAH is currently being paid at the higher DC rate. I would definitely entertain the conversation of renting vs selling. Over the three year period they would receive income from the rental and it would give them a place to return to following retirement. They would then be back in a known community, possibly back around friends and it gives them a safe place to look at retirement job opportunities in the DC area.
  • I agree with another writer about the couple near retirement - the DC area seems perfect to be close to furture employment as a consultant. Also, they are close to their children. So, I believe it would be best to rent their current home during the final military assignment. They will have money coming in and a home to return to.
  • "
    Betty Lewis June 8
    I agree with another writer about the couple near retirement - the DC area seems perfect to be close to furture employment as a consultant. Also, they are close to their children. So, I believe it would be best to rent their current home during the final military assignment. They will have money coming in and a home to return to.
    "

    Exactly
  • The couple who is nearing retirement seem to be in a great position since their home is in a location that will suit them when they retire. Renting out their current home for them to return to seems like the most ideal situation.
  • For the couple near retirement- the DC area would be perfect especially for employment as a consultant. That area is also close to their kids. I think it would be best to rent with the ability to be able to come back to their current home.
  • Ed and Marlene Brook case study: The issue is see is what is there long range plan and do they have funds for a downpayment. I would explain the pros and cons of renting in my area and the pros and cons of being a landlord in this area if they needed to move on short notice. I would recommend a local VA lender that could walk them through the entire mortgage process.