There are certain advantages to moving down the street or across town. You’ll likely have a basic understanding of the local market conditions, you’re familiar with the area, and the limited distance between the home you’re selling and the one you’re moving into makes the moving process a bit easier. But moving to a new city or state that you’re 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 options 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
The word that comes to mind to make the case for renting when moving to a new place is 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 what’s available on the market. For example, if you’re 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 you’d want to live long-term. All in all, renting can simplify the relocation process. With renting, it’s easier to predict your monthly expenses. And, in the event that something breaks or needs repair, it’s your landlord’s responsibility to fix it.
If you previously owned a home, moving into a rental likely means you’ll have to 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, you’ll have to move again from your rental. Moving twice, especially if it’s in a short timeframe, may not be worth the stress. It’s also worth noting that as a renter, your payments help build the homeowner’s 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 it’s time for a rent increase, or that they want to sell the property, you’ll have to adjust accordingly.
Pros and Cons of Buying
Though buying a home right away is a larger financial commitment than renting, it allows you to quickly get settled in your new hometown. You won’t have to grapple with the challenges of downsizing to an apartment and you won’t have to worry about moving multiple times in the short term. Home ownership is also a gateway to building wealth over time.
If you’ve never visited your new hometown, it can be challenging to get a true feel for the area, which can lead to buyer’s remorse. Buying a home requires a significant financial commitment, especially if prices in the market you’re 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 it’s best to rent or buy when moving to a new area depends on what’s 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.