Should you buy or rent your house when working as a Business Analyst?

I saw an article about the fact that millennials are still living at home with parents or renting. There is an expectation that eventually they will move into the home ownership market. Given this expectation, I wanted to give my 2 cents of advice.

Pre off shoring of white collar work, I would have not worried about buying a home and staying in it for my working life. However, times have changed and employers will consider not only local resources but also resources off shore.

Given that local resources are no longer a premium this also means there is less of a guarantee that you will be able to find work continually in the place where you live. Additionally the days of employers paying the cost of low level employee moving expenses more or less went away with the 90’s.

So what should you consider if thinking of buying a home?

1 – If you have to sell and use a relator it will cost you 6% of the sale price of the home.

2 РThe first 10+ years of a mortgage, you are primarily paying interest on the loan. Unless you are in a fast appreciating market (which also carries the risk of a bubble) you basically are just paying the equivalent of rent. Can you expect today to be able to stay working in the same area 10 years later.

3 –¬†If the job market dies where you have your home, then it will be very hard to sell.

4 – How hard is it to find a rental? If it is relatively easy to find a rental then that may be the way to go.

Benefits of renting.

1 – No sale costs when moving. Best also if the move is done near the end of the lease so that no lease breakage fee encountered.

2 – No issue with trying to find a buyer for your property.

3 – If your family grows, you can upsize your rental.

4 – When your work moves, you can as well.

In conclusion, think carefully before purchasing a property in the area where you are currently working as it may end up costing you money or limit your ability to find work.

 

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