You have been offered a better paying position within the company, but it means you must move. Do you buy or rent? This is an excellent question and conventional wisdom would say that buying is always preferable to renting because you will actually own something as opposed to "borrowing" it. However, as many people will tell you renting is sometimes the better answer, just ask anyone burned in the mortgage crisis. So, how can you tell which is the better financial decision in your case? Ask some prudent questions!
Length of Stay
Some relocations are meant to be permanent while others are simply another transition on your way to bigger and better things. Is your company sending you to Dallas for two years so that you can train new staff members or are you heading up a new permanent office of your own? If this is going to be a temporary situation, you are better off paying rent for a couple of years as opposed to getting trapped in a double payment situation when it is time to move again.
Prices
One very important piece of this puzzle is the current prices where you will be moving. In certain areas around the country, you can rent much cheaper than you can buy and do not have the added headache of maintenance and repairs. Of course, the opposite is also true. You will want to consult with a real estate professional in the area you will be moving to in order to assess the current price ratio. Cities such as New York offer much cheaper rents than home ownership costs while Minneapolis is the direct opposite. Results will vary according to city and state, but do not forget to figure in the cost of property taxes. States like Texas have no grocery tax but an insane property tax rate, so be aware of how this could affect the cost of ownership.
Personal Reasons
In some cases there will be personal reasons why owning simply makes more sense. This is especially true if you have extended family that often stay with you or pets you simply cannot give up. Renting with pets is nearly impossible in most areas of the country and renting may also restrict the amount of time your sister or aunt can stay with you without being on the lease. You may have other reasons for preferring to buy and those must be weighed against the cost as well.
Conclusion
To rent or buy, that is the question and the answer will vary depending on you, your situation, the area and many other factors. Take your time when relocating, ask your company to give you ample notice before scheduling your first day on the new job so you can adequately prepare. If you are extremely fortunate, your company will agree to pay some or all of your moving and rental expenses for a short amount of time, giving you an opportunity to learn about your new surroundings and choose an area that is suitable.
About the Author:
If you're buying or selling a home on Long Island, consider hiring an experienced Long Island real estate lawyer. Long Island real estate attorneys can help you avoid common legal pitfalls associated with buying and selling real estate.
