Should medical professionals rent or buy a home?
Here's five questions to ask.
5 questions medical professionals should ask when deciding whether to rent or buy a home.
Professionals in the medical field face many unique challenges, and one that is not commonly considered, but deserves some thought is should they buy or rent their home? Of course, as with every big life decision, there are some pros and cons to be considered when it comes to making a choice like that. There are benefits to both and therefore a lot of serious thought should be put into whether it’s better to buy or rent, especially if you are in the medical field.
1. Is this where I want to live?
If you are in residency, you need to consider the possibility of you relocating to a new city once you are done. Because of the cost involved in purchasing a home, it is recommended that you live in your home at least 4-5 years after buying it, to offset your downpayment and closing costs. Are you planning on settling in and staying put for a while, or do you perceive a move in a couple of years?
2. Can I afford this?
Owning a house is expensive. And not just the cost of buying one. The monthly mortgage payments and upkeep of owning a home can add up quickly and those in the medical field often have costly student loans that they are paying back. If you are also too busy to put time into doing routine maintenance (watering the yard, cutting grass, etc.) are you planning to budget in hiring someone to do that for you?
3. Do I have time to put into owning a home?
Back to the residency part; being in residency can involve long, time-consuming hours and owning a home can also require a lot of work (much of it unforeseen issues and problems that can pop up). Are you prepared to put time into repairs and upkeep? If not, are you able to pay someone to do that for you? If you don’t have to time or the money, do you have a partner or spouse that is able to do that for you?
4. Will this home fit my needs in 5-7 years?
If you are single, or in a relationship without children yet, do you see your life changing in the next few years? Since it is recommended staying in your home for up to 5 years to recover the cost put into purchasing it, is this house going to still fit your needs in a few years? Think practically as in size, area, school zone, yard space, and bedrooms.
5. If you do plan to buy, how likely do you see the possibility of the house selling in the future?
If you have decided to buy, one last thing to ask yourself is will your house sell, if you do plan to move in the future? How is the current housing market in the area you are buying? Are homes selling? Is the market in the buyer or seller’s favor? Do you see that you will be saving 5-7 years of rent money, or do you foresee losing 5-7 years of money put into your home?
Buying a home is one of the most significant life decisions that can be made, and for those in the medical field that are considering purchasing a home, the challenges of buying a home can be even more difficult.
No matter what decision is to be made, it’s important that you first ask, and answer yourself these five questions.