by Sandy Dodge
There are certain advantages to moving down the street or across town. Youāll likely have a basic understanding of theĀ local market conditions, youāre familiar with the area, and the limited distance between the home youāre selling and the one youāre moving into makes the moving process a bit easier. But moving to a new city or state that youāre not as familiar with can lead to questions about whether you should buy a home right away or rent until you know the area better.
Weighing the pros and cons between the two optionsĀ while factoring in your lifestyle, your plans for the future of your household, and your budget will help guide you toward your decision.
Pros and Cons of Renting
Pros
The word that comes to mind to make the case for renting when moving to a new place isĀ flexibility. By renting, there is less pressure to take the plunge on buying a new home right away. It gives you a chance to land, get to know the area, and explore whatās available on the market. For example, if youāre moving to a new city for work but have never been there before, renting might be a fitting solution to get your feet under you until you have a better idea of where youād want to live long-term. All in all, renting can simplify the relocation process. With renting, itās easier to predict your monthly expenses. And, in the event that something breaks or needs repair, itās your landlordās responsibility to fix it.
Cons
If you previously owned a home, moving into a rental likely means youāll have toĀ downsize. This may put you in a situation where you have to put some of your belongings in storage, adding an expense to the moving process. If you eventually decide to buy a home, youāll have to move again from your rental. Moving twice, especially if itās in a short timeframe, may not be worth the stress. Itās also worth noting that as a renter, your payments help build the homeownerās equity, not your own. Therefore, the longer you rent, the longer you delay building your own wealth. Finally, renters are at the mercy of their landlords. If they decide itās time for a rent increase, or that they want to sell the property, youāll have to adjust accordingly.
Pros and Cons of Buying
Pros
ThoughĀ buying a home right away is a larger financial commitment than renting, it allows you to quickly get settled in your new hometown. You wonāt have to grapple with the challenges of downsizing to an apartment and you wonāt have to worry about moving multiple times in the short term. Homeownership is also a gateway to building wealth over time.
Cons
If youāve never visited your new hometown, it can be challenging to get a true feel for the area, which can lead to buyerās remorse. Buying a home requires a significant financial commitment, especially if prices in the market youāre moving to are higher. Though the rewards of successfully buying a home are great, the process is full of intricacies and details that can add stress to the moving process, which you may not be up for right away. Furthermore, unlike renting, as a homeowner you are responsible for the maintenance of your property. Making repairs, tending to the yard, and keeping up the countless systems within the home requires time and money.
Ultimately, whether itās best to rent or buy when moving to a new area depends on whatās right for you and your household. Are you looking to put down roots right away? Would you prefer to live in the area for a while before deciding where to live? Taking time to consider these factors and working closely with a real estate agent will help identify the right option for you.