When you receive PCS orders, you’ll have to decide whether you should move to base housing, or instead, rent or buy a home off base. Your decision will involve many factors such as where you are in your career, your finances, your family size, and how long you think you’ll live in an area.
Each option offers advantages and disadvantages, so you’ll need to weigh the factors that matter to you and your family to make the best decision. To get you started, here’s a quick look at each option.
Living on Base
On-base neighborhoods are essentially gated communities. The benefits include being close to work and schools, a grocery store (commissary), gym, and coffee shops. Plus, you’ll be surrounded by military families who understand PCS moves and deployments and will be welcoming to new neighbors since they’ve “been there, done that.” Plus, they may have recommendations for local dentists, doctors, veterinarians, and the like.
You may have to pay “rent” for base housing, but it won’t be more than your basic housing allowance (BHA). You also won’t have to pay for water, sewer, electricity, trash pick-up or major repairs.
The drawbacks include the age and condition of some base housing and the long waiting lists (sometimes over a year!), with some housing options only available to those at certain ranks or with families.
Renting
If you’ll only be in a location for a short time, say two to three years, it may not make sense to buy a home because of the associated fees and closing costs. Renting may be a better option. And it’s easy: You sign a lease agreement, pay a security deposit, and make the first rent payment. Each subsequent month in the term of your lease, you pay the rent as specified in the lease.
Your rent payment is likely fixed for the term and won’t increase without proper notice. Also, you won’t be responsible for any major repairs unless they’re necessary because of your harm or negligence. Plus, if you receive orders to PCS, you’ll have the option to terminate the lease with 30-day notice. However, if you do need to vacate early, you might have to forfeit your security deposit.
Buying a Home
If you plan to stay in an area for a while, buying a home with a VA Home Loan can be a smart option. It’s also good to own if you get PCS orders and plan to rent out your home.
The good news is that with a fixed interest rate, you’ll have a set monthly mortgage payment, which could include setting aside funds in an escrow account to have your mortgage company pay your property taxes and homeowners insurance — so you don’t have to worry about remembering to make those payments. Of course, if your property taxes or homeowners insurance premiums change, then your monthly payment amount may vary. You also get more benefits like choosing where you live, remodeling to your liking, and building equity.
As a homeowner you’ll be responsible for all maintenance and repairs, so you’ll want to have sufficient emergency savings for these unforeseen issues and you might consider a home warranty service if you don’t have much saved.
We’re Here to Help
Whenever you make a move, and especially when you incur housing costs, it's a good time to reassess your life insurance coverage to ensure it meets your current needs and plans for the future. Need our assistance determining your protection options? Contact an AAFMAA Member Benefits Representative at 800-522-5221 or [email protected].
This article was originally published June 3, 2022.