MIL Saving BAH

Discussion in 'On Topic' started by CDQ109, Nov 18, 2008.

  1. CDQ109

    CDQ109 OT Supporter

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    Is there a best way to do this.

    Do people just usually find the cheapest 1 br apartment in the area to save the rest of their BAH? And if you do that doesn't it suck living there when you finally get too?
     
  2. Drunk Bastard Audio

    Drunk Bastard Audio New Member

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    depending on the location, you can sometimes afford a decent place based on your BAH and still save money...but then there's locations like San Diego, in which...well g'luck.
     
  3. gtcrispy

    gtcrispy New Member

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    That or getting a roommate. I live at a buddies house and save about $600/month.
     
  4. MrRyan

    MrRyan Gary Johnson 2016 OT Supporter

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    Many ways of doing it - some better than others and some that are completely hairbrained.

    The obvious ones are to purchase a low maintanence home and retain your BAH into an investment. The apartment thing works only if the difference is being deposited into a savings account (or investments that return - the market will recover one day).

    I've heard such things as people buying motorhomes or even mobile homes and just picking up and moving when it comes to PCS time and saving massive amounts of cash that way and gaining the benefit of dislocation allowances.

    Roommates help, but when you're pocketing all that cash, do you really want someone in your business?
     
  5. CDQ109

    CDQ109 OT Supporter

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    Yah I was thinking about buying a home, depending on the location I might even be able to rent it out (Obviously being very selective about the future tenants). Only concern w/ that would be that homes are at least a 15 yr commitment to make payments on them. So if it's not a house I want to live in once I'm out what can you do? Can you sell it and get all the money you put in back? I imagine it probably doesn't work like that. Buying a home does seem a lot easier than investing excess money from BAH. Investing seems nerve racking.

    Sounds like an interesting idea. Only thing is that your living conditions would suck while you're in.
     
  6. CDQ109

    CDQ109 OT Supporter

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    About how much time do people actually spend at their homes on their first sea tour? My Active duty commitment is 6 yrs.
     
  7. mbh819

    mbh819 New Member

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    Are you asking if you buy a home using your BAH, then sell it they won't let you keep the money? Once they give you the BAH it is yours. They don't care if you use it to rent or buy a place. If you buy then sell the house just pay off your mortgage and keep the difference, if there is any.
     
  8. widds2v

    widds2v Active Member

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    If your single and young get a roommate. I pay $650/mo for my apartment in San Diego and pocket the rest of the $1680/mo I get.
     
  9. widds2v

    widds2v Active Member

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    Depends on your ship. If you're overseas you get OHA not BAH, so you wont pocket any extra money, and you'll be underway a lot (unless you're on the blue ridge). Stateside, make sure you don't go to a BMD ship (look it up on wikipedia) or you'll spend extra time underway that other ships dont. Right now most ships are doing a deployment one year and a surge the following year, so you'll do either deployment, surge, deployment, surge, deployment your first sea tour (assuming 5 years) or surge, deployment, surge, deployment, surge. Surge is just another word for deployment, instead of 6+ months of a deployment you do like 5 months! There are workups as well, and other misc underway times for exercises. Honestly expect to be underway at least half a year every year.

    Navy is not for everyone. I have never heard someone that has been in Iraq say they would rather be on a ship on a deployment than be on the ground. Every IA I know says they'd rather go back to the desert, and every marine on the amphib I was on said they'd rather be on the ground (and they wern't even onboard as much as we were since we'd just taxi them to whatever exercise they were doing).
     
  10. MrRyan

    MrRyan Gary Johnson 2016 OT Supporter

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    Well besides the Capital Gains taxes that you pay on that money.
     
  11. mbh819

    mbh819 New Member

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    Pretty sure if you own the home for more than two years you don't pay capital gains taxes, unless the gain is over $250,000 or something like that. You can also claim the interest on your mortgage as a tax deduction. That's a pretty big benefit right there.
     
  12. AltimaNX

    AltimaNX New Member

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    My parents live 45 minutes from Ft Detrick so I live there and wrote a rent agreement and submitted it to my s1. I pay rent, but my BAH far outweighs the rent. I guess its nicer than being at Lejeune.
     
  13. Jyokker

    Jyokker The trouser snake is very aggressive. It will corn

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    Give this man a cookie!
     
  14. bloodred83

    bloodred83 im in ur cost gard, savin' ur boatz

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    The way I did it when I was still single on Long Island was to share a two bed, two bath apartment with a co-worker. The rent was $1600 and we both made ~$1500 at the time as single E-5's. That was a lot of tax free left over cash per month! I put mine into my savings account and CD.

    Up until recently, I made more money as an E-5 with 4 years in NY than I did as an E-6 with 6 years in WA... BAH sucks out here!
     
  15. Drunk Bastard Audio

    Drunk Bastard Audio New Member

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    x2

    Someone who spent 9 years in the Navy, 5 yrs on 2 ships....2 sea deployments (including work-ups)....and i'm about to finish my first Army tour in Iraq....and I'll take an Army deployment (12-15 months) over a Navy deployment 6-9 months) any fucking day.
     
  16. PlutoBHG

    PlutoBHG New Member

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    you get the most money renting a small 3br house or apt with 2 other people...
     
  17. PlutoBHG

    PlutoBHG New Member

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    my LPO (ET) is the only guy who i deployed with to the desert that says hed rather be on a ship...
     
  18. Julius

    Julius Guest

    seriously... your job in the Army might have you doing the most retarded shit in the world, but you (usually) have that CHU at the end of the day.

    i remember seeing the quarters on ships and i'd rather shoot myself than spend a single night in them.
     
  19. Bounty15

    Bounty15 OT Supporter

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    You'd have to make a pretty big down payment and get stationed at one place (depends on BAH) for quite a while to make money on a house, especially with how the market is. There are a lot of other costs associated with it (repairs, realtor costs, utilities, interest on loans, etc.). It's one more big thing you've got to worry about whether you are at home or deployed. If you buy a place, I would try to plan on making it a place you will live in when you get out.

    As is being said, BAH can change drastically between duty stations. So if you try to base your mortgage payments off a location with high BAH and get moved to a place with lower BAH you could take a pretty big hit to your basic pay check.
     
  20. widds2v

    widds2v Active Member

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    Cant AF stay at the same base for basically forever? Would be decent investment wise on a house, plus it's the AF...
     
  21. jmx2323

    jmx2323 OT Supporter

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    when I was in california, I was getting 1200 BAH and I lived in a really nice 3br town home and paid 500 a month split with 2 other guys....made a ton of money in the 6 months I was there
     
  22. TRN

    TRN Well-Known Member

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    You could always just go sleep under the bridge. :o
     

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