If you’re planning to uproot your family and relocate, you’ll have to find a new place to live. Buying a house might be your best course of action, but in some cases, it can make more sense to rent, at least at first.
Compare Costs
If you buy a house, you’ll have to make monthly mortgage payments, plus cover the cost of homeowners insurance, property taxes, maintenance and repairs. If you rent, your landlord will cover insurance, taxes and other expenses.
Home prices and rental costs vary widely from place to place. In some locations, the cost of homeownership is significantly higher than the cost of renting. In other areas, buying a house is cheaper than renting. This is why it’s essential to research prices in the area where you want to live.
Figure Out What You Can Afford
If you buy a house, you’ll have to make a down payment and pay closing costs. If you don’t currently own a home, you won’t be able to use money from a sale to cover those expenses. You’ll have to save money yourself, and possibly get financial help from family or friends.
Renting will require a security deposit, but it will likely be much less than what you would pay for a down payment and closing costs. If money is tight, you can rent now, save money and buy a house later.
Think About Stability and Flexibility
If you’ve found your dream job and you’re confident that you’ll stay in the new city for at least the next several years, it can make sense to buy a house and put down roots. You’ll be able to build equity and use it in the future for home improvements, debt consolidation and other purposes.
You might not be ready to make a long-term commitment. If you’re starting a job with a new company, you might want to see how things go before you decide to settle down. If you’re moving to a city that you’ve never visited before, you might want to rent a home for a year or less, familiarize yourself with the area, then possibly move to a different neighborhood.
Renting can give you the flexibility to move if your circumstances or feelings change. If you buy a home, you’ll have the option to sell it, but that can be more complicated. If the housing market isn’t favorable, you might have to delay a sale to avoid losing money.
Consider Your Goals and Circumstances
Figuring out whether to rent or buy is a complex decision. Compare prices in the city where you want to live and think about what will be better for you, both financially and personally.
Buying a house can give you stability, but committing to a home purchase before you’re ready can make you feel stuck. If you’re not sure if you’ll like your new job or you’re not familiar with the new city, the flexibility that comes with renting can give you peace of mind.
