Should You Rent Or Buy A House After College

Then your credit should be ok.

Should you rent or buy a house after college - When you rent you probably won t sign a lease lasting longer than a year which gives you flexibility to move. But when buying a house you should plan on staying put for at least three to five years so as to recoup the initial purchase costs around 2 5 of the purchase price. I ve made both small and large down payments on homes personally and i can say it s far less stressful to make a sizable down payment. If you want to buy a home after college you need to start saving as much as you possibly can right now.

If you buy a house and have it destroyed due to a hurricane or fire you may have to start from scratch something that s not so easy if you re young and in college. In college towns some landlords offer leases that cover the school year beginning in the fall and ending at summer break. That means you get to start thinking about exciting. There s only one problem.

In addition it s a tax write off can be used as a rental income in the future or can be sold and upgraded to a nicer home after graduating from college and starting a career. While there are pros and cons to putting 20 percent down on a home i feel very strongly that if you re going to purchase a home especially right after college this is a necessity. I think your ability to a purchase a home straight out of college depend upon a few factors. Deciding whether to rent or buy always comes down to what you can afford.

And you re wondering if you should stop renting and buy a house too. You aren t sure you can afford it. Other landlords may insist on traditional 12 month leases. If you plan to go home for summer vacation ask your landlord for a lease that covers only the time that you ll be in school.

Certainly you will need to have good credit. Your friends are buying homes. After four long years at college it s time to move on to the next stage of your life. The pros of buying your college student a home.

Buying means staying put. They sell the house and rent an apartment for 2 000 a month. The question when you re around 21 22 23 is have you had a credit card or two open throughout college and always paid them on time. Say they did not have a mortgage and after closing and moving costs clear 480 000 which they invest in a portfolio divided equally.

Your dog wants a yard your kids want a playground and you wouldn t mind a garage and an office.