Should You Rent? Or Should You Buy?

This is a question found on the minds of many physicians. Whether you’ve just completed your residency, have been in a physician position for a year or more, or are positive this is the city or town where you wish to spend a few years practicing as a physician, buying a home is typically the best option. However, there are also many benefits when it comes to renting. Read on to learn more about renting versus buying for physicians.

When Should You Rent a Home?

For residents, renting a home is the best option. This is because residents typically do not have a sufficient down payment to buy a home. Besides this, residents don’t have an income. Not only does this make it harder to secure a loan, but it makes it almost impossible to pay your mortgage, not to mention the amount of debt you’ve already taken out with student loans.

As a resident, your residency lasts about three to five years, meaning that you could pick up and move once it’s completed. With a precarious housing market in many cities, it might seem like a gamble to purchase a house during your residency and then depend upon selling it to relocate for a job offer.

This is not to say residents should not buy a home. Of course, every situation is different and while one resident may not be in the position to purchase a home, another may be, and there are numerous realtors who love to work with residents and lend them their inside expertise to make the right purchase.

To start with, residents and physicians should compare the costs of renting vs. buying. While buying a house incurs more costs than renting, it can still be difficult to figure out which is the better financial choice. The New York Times has a nifty calculator tool that will help you answer this question by calculating the costs associated with buying a house compared to what you would pay in monthly rent.

The calculator factors in such variables as taxes and closing costs for buying a home, as well as costs incurred from renting, such as the security deposit, renter’s insurance, and a broker fee.

Benefits of Physicians Buying a Home

When it comes to physicians, however, there are more pros to buying a house than renting one, and many of these benefits have to do with the physician home loans offered specifically for those in this field.

Buying a home is an excellent investment opportunity. For physicians, it’s important to think short-term, as promotions and other opportunities will arise. You may find yourself taking a dream job across the country or even across the world. However, you don’t have to sell your home if you move. Many physicians hang on to their investment by renting it out for profit.

Other benefits to owning a home include significant tax deductions and having your very own home office where you can quietly work even when you’re not at the hospital.

As a physician, did you know you have access to an entire realtor network that works specifically with physicians? Not only this, but when you are shopping for a new home, you also have access to physician mortgage loans and physician relocation support.

Some of the advantages of a physician loan over a conventional loan include no PMI, flexible guidelines, lower down payments, more flexible closing dates, and lower rates. As a physician, these benefits make it easier for you to purchase a new home.

At Curbside Real Estate, we make the home buying process simple and stress free for physicians. Through our website you gain access to expert real estate agents and lenders who will compete for your business. As physicians ourselves, we know how going the traditional route for buying a home just doesn’t work for physicians. That’s why we invite you to try what does work. If you would like to discuss the home buying process in more detail, you can reach Curbside Real Estate at 650-397-1728.