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:
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.
Buying 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.