Buying a house vs renting while in dental school

[LidocaineMane32]

I’m a nontraditional student that is quitting their job and starting dental school this summer. I already own a home and my family will stay back while I move away to school. I’m back and fourth in buying another house vs renting. It seems like I could get more bang for my buck with buying a house but it also comes with the risks of home repairs and selling once I graduate. Anyone here have any advice on what they did?

Note: I do not plan on staying around my school once I graduate

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[Roy Williams]

I’m a nontraditional student that is quitting their job and starting dental school this summer. I already own a home and my family will stay back while I move away to school. I’m back and fourth in buying another house vs renting. It seems like I could get more bang for my buck with buying a house but it also comes with the risks of home repairs and selling once I graduate. Anyone here have any advice on what they did?

Note: I do not plan on staying around my school once I graduate

If I had the capital going in I’d probably buy a condo, live there for four years, and then sell. If your family is not going to be living there you could also rent out a bedroom to another classmate for more gain.

 

[Gustavo dos Santos]

I’m a nontraditional student that is quitting their job and starting dental school this summer. I already own a home and my family will stay back while I move away to school. I’m back and fourth in buying another house vs renting. It seems like I could get more bang for my buck with buying a house but it also comes with the risks of home repairs and selling once I graduate. Anyone here have any advice on what they did?

Note: I do not plan on staying around my school once I graduate

Depends on what is available in the area. If you can get something that is relatively new/renovated and for a good price then may be worth it.

at the same time, we’ve been in one of the strongest real estate markets in history over the past 13 years (especially depending on location). Will it continue? Who knows. Rates are basically at an all time low, fed is sort of signaling a rate increase (or they need to to avoid inflation from the $4T they just pumped into the economy) which will likely have a negative effect on home prices and demand. You’d be buying at a potential peak - and that’s not just a “market may not go up anymore” potential peak, it’s a “we lowered interest rates because of Covid, people can afford more in their monthly payments, there was pent up demand from the past year , and home prices are pretty crazy, the fed is likely going to increase rates which will restrict demand” peak.

It really does seem like we are in a bubble. but who knows when it will pop or if it will pop. All that being said, it feels like there is a very real risk of loss in home value from the peaks we see now to what we might see in 4 years. Add in cost of sale.... who knows.

you could hold on and rent the property if you need to in 4 years.

 

[oralcare123]

Depends on if you have enough for a good downpayment and able to get a loan for remainder
Buy something close to school, you could live in and rent out a room or two to your mates. If market crashes later you can always rent it to students

 

[Pablo Sanchez]

For the sake of simplicity I would rent if it's just going to be the four years, and you have no intention of keeping the property as a rental property down the line.

It's under 4 years (August of D1 until May of D4)

There are hidden costs with a purchase and sale of a home.

Repairs and maintenance are a hassle when you're dealing with the stresses of school.

The real estate market is HOT right now. You'd probably be overpaying for the property you buy.

I'd just focus on school. It'll fly by. Graduate with as little debt as possible. Invest anything extra you have beyond your emergency fund. And settle down once you graduate and have a stable job in a location you'll hang around for a while.

 

[Ivy.ch]

Rent vs. buy: Should I rent or buy a home? | Fidelity

Should I buy a home or keep renting? Here are 5 questions to help with the decision.

www.fidelity.com

 

[EdgeTrimmer]

If you think rent covers monthly PITI with 20% down payment and not averse to being a remote landlord for few years you can buy. Unfortunately real estate market is like stock market now a days ie big swings.

 

[Big Time Hoosier]

I wonder what’s going to happen to housing after the eviction moratoriums run their course.

Big Hoss

 

[Cold Front]

I wonder what’s going to happen to housing after the eviction moratoriums run their course.

Big Hoss

Well, it will be extended or there will be protests in the streets during a pandemic.

In my city, about a decade ago, a middle class life allowed you to afford healthcare, college for your kids and a very generous home. Today, people from the coasts showed up with $800k+ budget for a home in a market that averages $300k in my city. All of the sudden, owning a home is a luxury. Rates are so low, multiple cash offers competing for the same home, sellers have total control of the market. The pandemic made homes the new; office, gym, movie theatre, etc. Middle class suddenly got squeezed out in today’s market.

Check this fun fact out... 9% of our GDP is now from the housing market, and it’s still rising! The TOTAL business expenditures in this country (a productive segment of the economy) is also 9%. So when we have all these housing debt, and bank algorithms telling almost any buyer on the market “you can afford almost any house”, a non-productive asset of our economy through an asset bubble, it’s very alarming to say the least. 81% of all the inflation out there today is from housing, and the credit bonanza coupled with super low interest rates is skewed towards the rich and makes affordable housing more difficult for everyone else. And when the correction comes, the middle and lower class will be hurt even more.

I read a reputable article on this topic yesterday... 2 out of 5 millennials (majority who carry a historic student loans between them) said they will never own a home. A big shoe will drop sooner or later.

 

[yappy]

I wonder what’s going to happen to housing after the eviction moratoriums run their course.

Big Hoss

We have a fake economy where no one bears the consequences of their decisions. Banks, politicians, home owners, and the housing industry will not let the housing market correct itself.

 

[Big Time Hoosier]

Long story short...

Big Hoss

 

[Cold Front]

We have a fake economy where no one bears the consequences of their decisions. Banks, politicians, home owners, and the housing industry will not let the housing market correct itself.

Everyone is looking out for their own interest. No one cares about collective bargaining for the greater good of the country. We are about 1/3 into 2021, and 1M+ new people file for unemployment claims every week since the start of the pandemic. The government encouraged everyone to take risks while printing money. I know an oral surgeon who received a $1,400 stimulus... he was surprised by it. The dead got stimulus checks. Foreign hackers and scammers swindled unemployment money from our states. We have a very asymmetrical economy, that bowed to corporations who used their profits for stock buy-backs instead of rainy day funds with large grants (Exhibit A: The airline industry), provided debt relief to zombie companies, and did not invest in future generations financial well-being. We have multiple looming crisis as a nation; aging demographics with fewer people to support the seniors, a deficit that is beyond repairable, extreme political division that created more domestic issues than foreign, and deep economic inequality that will outlive us. It’s a shame to ignore these realities - because we can always kick the can down the road.