Buying vs. Renting When Relocating to Your New Home

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Real Estate Agent with Solutions Real Estate CA DRE #01490977
https://activerain.com/droplet/48mT

Buying vs. Renting When Relocating to Your New Home

 

Video #5 in my Relocation Tips Video Series is about the dilemma of renting vs. buying when relocating.

 

Here are the prior articles (with videos) in this series in case you missed them:

 

Video #4 – Finding the Right REALTOR® to Help in Your Relocation

 

Video #3 – Moving with a Relocation Package

 

Video #2 – Getting Pre-Approved

 

Video #1 – Relocation Expenses

 

Introduction to Relocation Tips Video Series

Renting vs. buying may be a financial decision

 

A tough question many who relocate must face is whether to buy or rent in the new location.

 

The answer may be determined by your financial situation regardless of what you might prefer to do.

 

 

Can you afford to buy a home in the new location before selling your current one?

And even if you can, does it make sense to do so?

 

This is a tough question, and many find themselves in this dilemma, especially if they HAVE to move (e.g., due to a job) and the current house has not sold. On the one hand you want to have a place you can call home in the new town, and get settled. But other circumstances (financial, 2 jobs, kids in school) might mean renting for a while.

 

Relocation is not for dummiesBuying another home before you sell your current home can be very risky.

 

 

Be sure to get pre-approved so you know even IF you can afford 2 mortgages for an indefinite period of time. That alone may make the decision for you.

 

An advantage to renting first is you can take the time to really get to know the area and decide where you want to look.

 

Plus you have time to look more carefully before you buy rather than rushing to find a home, because your current home is under contract, and making a hasty decision.

 

 

It also may be less burdensome financially and you are not locked into a second mortgage.

 

If you are moving with a Relocation Package temporary housing may be included and can help solve the interim housing dilemma. Be sure to check on what you are eligible for and for how long.

 

There are also some disadvantages to renting: (1) you have to move twice in a short period of time, (2) you may not have all your furniture and personal goods;  (3) finding a rental that takes pets can be a challenge, (4) finding a short term rental can be tough and expensive; (5) finding a rental in the same town where you want to buy so your kids don't have to change schools twice in 1 year may be hard, and (6) financially it may cost you more since you have to pay the rent plus 1 months security and perhaps the last month's rent in advance, and the rent could exceed your mortgage.

 

All in all, it's best if it's a conscious, planful decision to buy or rent and not one that is forced on you.

 

If you need help thinking through some of these issues and possible solutions please given me at call at (760) 840-1360 so we can discuss your personal relocation situation and needs. I’ve experienced a number of different scenarios with family living apart, 2 jobs, kids in school, travel, temporary housing, renting, and leasing the old home.

 

 

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Topic:
Home Buying
Location:
California San Diego County Carlsbad
Groups:
Certified Residential Specialists
Local Expert
Advice for Buyers
San Diego Realtors®
Tags:
relocation
moving tips
relocation tips
southern california relocation dude
buying vs renting when relocating

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Rainmaker
1,298,252
Li Read
Sea to Sky Premier Properties (Salt Spring) - Salt Spring Island, BC
Caring expertise...knowledge for you!

In my secondary home region, it's often wise to rent first...not so easy to sell out of an error, when in a recreational marketplace.

Dec 19, 2013 02:20 AM #1
Rainmaker
1,686,056
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

Jeff, you're giving folks relocating to Carlsbad and environs much good information to think about. I love your video series!

Dec 19, 2013 03:07 AM #2
Rainmaker
1,147,110
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

You have brought up some great points, Jeff. Even if you want to buy upon moving to an area it might not always be possible, so renting is the only option. Working with an experienced Realtor such as yourself is going to help ease the stress of the move. Happy Holidays, Jeff.

Dec 19, 2013 05:14 AM #3
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Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Li - not surprised to hear that. The big challenge is at the seller's end. It can be a tough decision and you don't want to make the wrong one if you can help it

Thanks, Lottie. It's been fun and I'm pleased to finally getting the videos and posts I had planned for some time in place. Goal is to have them all done by year end.

Jane  - it can definitely be a challenge to sell and buy a new home at the same time, especially at a distance and in this type of market. Getting a contingent offer accepted is real tough, if not impossible.

HAPPY HOLIDAYS EVERYONE!

Jeff

Dec 19, 2013 07:45 AM #4
Rainmaker
2,190,671
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

When I do preapprovals for first time home buyers and when comparing the cost to rent vs. a mortgage payment, most of the time, buying is a better option.

Dec 19, 2013 08:34 AM #5
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Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Joe

No surprise. The challenge is for those buyers who are also selling a home and want to buy a new one. I suspect a good number cannot carry two mortgages, at least not if they are moving to a much more expensive community. In any case they need to go through the pre-approval process to buy,.

Jeff

Dec 19, 2013 09:10 AM #6
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Jeff Dowler, CRS

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