Should I Buy or Rent After College?
Shout out to all you happy graduates! Graduating from college is a big accomplishment and a big investment in your future. So, now what? Well, you might be thinking about another big investment -- buying a home. Here’s the question: Is it better to rent or to buy after graduating from college? The answer really depends on you and here’s why:
One of the biggest challenges facing millennials is the amount of college debt that they accrue. In some cases, that debt can even be equivalent to a house payment! Yikes! In fact, according to the Federal Reserve Bank of New York, most students graduate on average with $37,000 in student loan debt. For many, this number deters them from even considering buying a home. But keep this in mind, both education and homeownership are long-term investments with great returns.
Another factor holding college grads back from homeownership is indecision. Many grads don’t know where they want to be. After graduating from college and getting that first job, you might be thinking, “Maybe I should stay here, maybe I shouldn’t.” In this case, my advice is to rent. If you’re not sure that you are going to stay in a place for more than two years, buying may not be the best option. Here’s the reason: Depreciation! It would be hard to make back that money unless you get a screaming deal or you plan to hold on to the property as an investment property.
You basically just need to do a self inventory and consider what your current goals are and where you want to be in the foreseeable future. Of course, a famous Disney rat once said, “the only thing predictable about life is it’s unpredictability.” We can’t predict the ups and downs that life will inevitably throw at us, but it’s always good to have a plan and goal in mind.
When you have a goal and you’re clear about what you want, decision making becomes easier. That’s why it’s important to work with a real estate consultant who will listen to you, help you make smart decisions, and walk you through the home buying process. Contact a member of the BHURDinUtah team today and we’ll talk to you about your goals, your options, and help you on the path to a very bright future.