The question of renting and buying is a difficult one regardless of the situation but can become particularly significant when relocating to a new city. In this blog, we will address some of the most common concerns with renting vs. buying and introduce some considerations before you go into the process.
One of the largest considerations when moving to a new city and deciding whether to rent or buy is your level of commitment to staying in this new home/city. If living in this city for 3-5 years seems like too much, then buying probably isn’t for you.
Coupled with this question of commitment is the reason(s) you are moving. If you are moving for a new job and it doesn’t work out, could you live in this new city until you find another one? Renting is a great way to get your toes in the water and learn a little bit about your new city and doesn’t come with all the strings that buying a home does.
A major consideration for buying a home is knowing WHERE to buy a home i.e. are the neighborhoods safe? Where are the shopping districts?
If you have a family, a question you might ask is how well the local schools stack up against other schools? These are all great questions to ask yourself before buying a home in a new city.
Renting can serve as a very viable option for finding the answers to these exact questions while enjoying the immersive experience of your new city.
Granted, one of the major advantages of buying a home is building equity in an investment. This allows for your money to go towards a sellable good rather than towards expensing rent each month.
This article about renting and buying a home provides an excellent breakdown of the pros and cons for both. The first and foremost consideration before buying or renting would be your own financial health. Only buy a home if you are in the financial position to do so!
TIME AND ENERGY
Moving, regardless of buying or renting, is exhausting! Make sure that you have the time and energy necessary to make your move a great one. The more preparation that goes into a move i.e. researching where and when you are going to move, how you are moving, the time of year, the easier it will be. Here are some of our helpful tips on how to reduce the stress of moving!
If you feel rushed into a purchase, DON’T DO IT.
It is better to rent and find what is best for you than to dig a hole you can’t/won’t be able to get out of in the future. With the right resources, buying a new home may be a no brainer but always consider the potential fallout of buying a new home before doing so.
Due diligence is key!
At the end of the day, the process of buying or renting can boil down to one thing: YOU. Where are you in life? What are your goals by moving to a new city? Are you a recent graduate looking to pay down some student debt? Are you a new family looking for good schools to enroll your kids in? Are you an established individual with time and money on their hands? It is important to consider questions like these before entering the buying process. We have compiled some other questions you may want to ask yourself:
- Are you looking to put down roots somewhere? Or are you thinking about buying because it seems like the right thing to do?
- Do you have a big enough down payment for the type of property you really want? Or would it make more sense to keep saving for a larger down payment?
- Is renting first and then buying later an option? Or is the idea of having to move twice absolutely incomprehensible to you?
Regardless of your answers, it is most important to consider yourself when engaging in this process. At the end of the day, this should be what you want it to be! Always do what is best for you.
Try not to get caught up in the number of options and alternative situations and balance logic with emotion.
Your personal circumstances and financial health should be the major drivers of this process.
Do your research, know what you want, and go explore!