I am graduating in May and accepted a job offer starting in July. I am looking into either a) renting an apartment for around $2,000/month or b) buying a condo for around $300,000. Is there any reason why I would rent instead of buy?
Some context
- 22 years old, no debt, would put 20% down, starting a job in July
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Well, where are you talking about? Some factors/questions:
A lot of factors to take into account and really depends upon your preferences. If it’s a place you love and can see yourself living in for years, then go for it. But if it’s merely for investment purposes, then I would take more time to consider all the potential outcomes.
Thanks for the response.
1) It's in a city I want to live in for the foreseeable future, in a nice area.
2) After taxes I'll be taking home about $4,800/month (I'm getting pre-approved for a loan right now, but anticipating that the payments would be nearly 1/2)
3) It is a 2-year analyst program and there's no chance of relocation (My only worry is the possibility of being fired)
Getting pre-approved is a great move. If that all works out, then definitely go for it. Hoping you don’t get fired but in the rare chance that does happen, you can always find another job in the area. Good luck!
Maybe I’m making it extremely easy(I’m not a us resident), but it seems to me that even if will be moving somewhere else but can rent out at 2k a month, will be better off buying than renting on a(at least)15years mortgage.
Only point I would raise is: wouldn’t be worth waiting a few quarters to see where the RE prices go? You wouldn’t want to buy something at it’s peak
Unless you have a phat trust fund, it would be nearly impossible to get a loan without 2 year's income.
If he's using a Fannie/Freddie loan, he should be okay.
Conventional lenders can utilize time in school as your 2 year work history.
Simple - rent. Now is a terrible time to buy, as you’re getting crushed by inflation and interest rates are no longer favorable. Also don’t lock yourself in to a location this early in your career. Keep flexible in case an opportunity comes up.
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