Young Professionals Contemplate Rent vs Buy Debate in Housing
Taking a side in the rent vs buy discussion can be a challenge for anyone of any age. It’s particularly problematic for young professionals though who likely want to remain agile and mobile and could get a lot from being close neighbors with their metropolitan jobs even if they can’t afford to “buy” one of the luxury high rises in Manhattan or any of the hyper-inflated West Hollywood bungalows near the studios. Still there are advantages to taking the latter side of the rent vs buy discussion; even in bigger metropolitan areas.
Buying is a Long Term Commitment: Yes buying is a long term commitment but that isn’t always a bad thing. If your job could take you all over the world, you will still need a home to come back to. If you have a spouse or a child then having a stable environment for them to grow up in is far preferable to jumping around to different apartments in ever-changing rental market. Even if you’re staying put neighbors you share walls with are coming and going all the time.
Buying Gives You Something Tangible: When you plunk down the first and last month’s rent on an apartment you're basically putting yourself in a noose of having to pay x-number of dollars every month for the privilege of being able to live in this rental. When you buy a home you will have something worth something coming out on the other side if you ever decide to move.
Buying Locks In Your Monthly Payments: When you look at a mortgage and see that your last payment will be in 30 years that may be a bit much for you to grapple with. Especially if you’re young and feeling free. But when you buy a home you are locking in this payment for the terms of the agreement as long as you continue to make payments. The logic goes that your income should rise throughout your career; if your payments stay the same that’s great. Renting on the other hand only keeps getting more expensive. Even though you’re making more money you’re spending more on always rising rents. This is one major reason the rent vs buy debate falls on the "buy a home" side right now as rental prices continue to rise every year.
Interest Rates Aren’t Going Much Lower: Just as a practical mention, interest rates aren’t going to get much lower than they are right now. Having an affordable payment is a good enough reason to consider buying in the rent vs buy debate.
Take the first step to deciding whether it's time for you to buy a house. Download "The Essential Guide to Buying Your First Home" at the button below. Find out how your credit situation and down payment chances are looking with the free guide.
(creative commons photo credit)