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- Dec 26, 2008
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I understand that during residency, it’s almost always smarter to rent than buy because 1. You don’t know where you’ll end up practicing afterwards 2. Don’t have enough money for 20% down payment 3. You need flexibility 4. Easier to manage your budget when you have only to worry about rent vs mortgage/insurance/maintenance/etc
However, I’m having a hard time understanding why people still recommend renting over buying for newly minted attending who has massive student loans. Why continue to pay rent when this money could be used to gradually acquire ownership of a property? Many times, the rent you pay is equally or marginally less than your total monthly payment for mortgage + property tax + insurance + maintenance.
I do realize that the situation maybe different for someone residing in an area where housing prices are astronomical (SF, LA, NYC, etc), but for the vast majority of large non-costal cities, a 300k can afford a very decent house for a small family.
Yet, I keep hearing Dave Ramsey advising couples with massive student loans to “live on nothing and buy nothing until loans are paid off”.
However, I’m having a hard time understanding why people still recommend renting over buying for newly minted attending who has massive student loans. Why continue to pay rent when this money could be used to gradually acquire ownership of a property? Many times, the rent you pay is equally or marginally less than your total monthly payment for mortgage + property tax + insurance + maintenance.
I do realize that the situation maybe different for someone residing in an area where housing prices are astronomical (SF, LA, NYC, etc), but for the vast majority of large non-costal cities, a 300k can afford a very decent house for a small family.
Yet, I keep hearing Dave Ramsey advising couples with massive student loans to “live on nothing and buy nothing until loans are paid off”.