5 Questions Medical Professionals Should Ask When Deciding Whether to Rent or Buy a Home
It might be hard to make the vital decision of renting or buying a house as a medical professional. What with the possibility of moving away to a better job and the time spent in residency? Despite this, making up your mind and finding the right decision shouldn’t make you stall. In this article, I am going to discuss five questions medical professionals should ask when deciding whether to rent or buy a home.
1. How long are you going to be in that location?
Medical professionals will sometimes need to move around earlier in their careers. However, because their job prospects are usually positive, they can often choose their preferred location. But unless you land a dream job as your first job, chances are you will move around in search of greener pastures. If you know you’re only going to be in a location for a year or two, then the best option is likely going to be to rent. If you’re going to be there longer than that, there is a strong chance you should evaluate the housing market and run the numbers on a potential house purchase.
2. Are you hoping to build equity in your home?
After buying a home, owners can make money as the equity in their home accumulates over time. Renters will not have this option because they don’t have ownership in the place they’re living. As an owner, each month you’ll be paying down debt, but you’ll also be increasing your wealth by how much the house increases in value and what another buyer might pay for it. However, if the value of the house falls, you’ll be in a position where your value goes down. Finally, if you have a fixed-rate mortgage, you won’t have to worry about rising rents because your monthly mortgage amount is fixed for thirty years.
3. Can you raise the down payment to buy a house?
To buy a house with a mortgage, any person in the general population might need to put down a down payment of anywhere from 3 percent to 20 percent of the home’s purchase price. As a medical professional, there are many mortgage programs that do not require any down payment, just available funds to cover some of the transaction costs. MedAbode has great relationships with mortgage companies who can point you in the right direction for the program that best fits your needs.
On the rental side, you’ll likely need to pay the first month rent’s along with the last month’s rent and the security deposit (equal to one full month of rent) before you’re able to move in.
4. How will renting vs. owning affect my lifestyle?
Your lifestyle and priorities are major forces in your decision to rent or own. For many, the freedom of choice, privacy, and control that come with owning a home are big selling points. With a home you’re able to upgrade appliances or landscape a backyard, things that might not make sense if you were a renter. You also don’t have the control over whether you can stay in one location long-term because a landlord has the right to rent to someone else at the end of your lease or raise the rent substantially. On the other hand, some people might prefer the convenience, flexibility, and short-term commitment that comes with renting.
5. Are you ready to do the maintenance or would you like minimal involvement?
Owning a home can require regular maintenance costs that can eat into your time and finances. This is the case whether you buy a new house or an old one and is a necessary part of home ownership. If you’re a renter, these issues can still arise, but they are likely covered by your property manager or landlord.
In summary, many factors come into play when deciding to buy or rent a house regardless of your occupation. As a medical professional, consider the above five questions when considering that decision. But these are only just the beginning questions, the decision can be a lot more complex and your specific situation might have some interesting aspects so be sure to talk with someone from MedAbode who can outline everything that you should be thinking about.