In article ,
S. S. wrote:
I need your help in assessing the options for me. Here is the
background information --

Husband and wife; both 28 years old; no kids; both working full time;
currently renting a one bedroom apartment in Boston suburb; monthly
rental slightly over $1,000;

Each month, after tax, car loan, rental, 401k, utility, and other
misc. expenditures, can save about $3,400. At this rate, in 3 ~ 4
years, will reach over $200k in saving. At that point, plan to buy a
house at about 500K ~ 600K (which probably would be average in a good
Boston suburban town at the time of 2008). Have to wait until that
time, because (1). do want to put 20% down payment; (2). do want to
have enough money for overhead housing expenditure and emergency fund.

Wise choice.

Right now, need to move to a bigger place. So either can rent a
two-bedroom apartment (monthly rental will be around $1,300), or buy a
condo or a townhouse at over $200k (once again will put 20% down
payment) in this area. But given that we plan to buy a single house
in, let's say, year 2008, we cannot decide whether the benefit is any
bigger to buy a condo/townhouse and then sell it in the 4th year. If
renting a two-bedroom for 4 years and holding a two bedroom for 4
years yield the similar financial outcome, then we'd rather avoid the
hassle of owning a unit. Can you help me assess the options? Thank you
very much in advance!

General rule of thumb is that less than 5 yrs, rent. 5 or more, buy.

Like most ROTs, should be taken with a large grain of salt.
Evaluate the costs for both alternatives, not forgetting taxes and
insurance and see which looks better.

--
Rich Greenberg N6LRT Marietta, GA, USA richgr atsign panix.com + 1 770 321 6507
Eastern time zone. I speak for myself & my dogs only. VM'er since CP-67
Canines:Val, Red & Shasta (RIP),Red, husky Owner:Chinook-L
Atlanta Siberian Husky Rescue. www.panix.com/~richgr/ Asst Owner:Sibernet-L