Should you rent or buy a house when moving to a new city?

When moving to a new city, you’re starting a new chapter in your life. Everything around you is new and exciting and the opportunities are endless. It’s only natural that you’ll want to make the best out of your chance to start anew and build the life you’ve always wanted for yourself – get your dream job, create your dream home, meet your dream friends, etc. Achieving this, however, won’t be easy – you’ll need to find the right job, the right home, and the right people first.

When it comes to choosing the perfect new home for you and your family, many factors come into play – type and size of dwelling, location, traffic patterns, amenities, safety, neighborhood vibe, etc. It will be difficult, if not impossible, to find the right place to call your own until you get to know the various neighborhoods in your new area and come across a property you truly like in the part of town you want to live in.

That’s why many experts suggest that renting a house at first when moving to a new city is the better choice – it will give you the chance to explore your new area and find the perfect new home for you. Yet, it means that you won’t be able to really settle into your new life for a longer period of time, not to mention the money you’ll “throw away” on rent.

So, is it better to rent or buy when moving to a new city? Read on to find some useful insights into the dilemma:

Pros and cons of renting in a new city

Renting is considered the smarter choice when moving to a new city for a number of good reasons – it gives you flexibility and simplicity:

• You won’t need to worry about finding a new home while dealing with the sale of your old house, saying goodbye to family and friends, and organizing your move. This will allow you to focus your time and energy on the forthcoming relocation and will take off some of the stress of moving house;
• You’ll have the time to unwind after your big move before you start setting up a new home and adjusting to a new community;
• You’ll have the chance to explore your new area and learn the ups and downs of your new city before deciding on a place to live;
• You’ll have the chance to test out a neighborhood before committing to it;
• You’ll be able to carefully research your housing options and, if necessary, wait for a while until an appropriate property becomes available;
• You’ll be able to complete any repairs and renovations you want to make to your new home before moving in;
• You won’t be stuck with a mortgage and a home, so if anything happens, you’ll be free to leave on your own terms.

Despite all these advantages, however, there are certain drawbacks to renting in a new city as well:

• You’ll have to move again when you find a permanent new home in your new city. It may be only a move across town, but going through the hassle of relocating for a second time within several months can be just too much;
• You won’t be able to settle in, feel at home, and adapt to your new surroundings while you’re living in a short-term rental;
• You may have to pay for storage, if your rented property isn’t large enough to accommodate all your stuff;
• If you have school-aged children, they may need to change schools twice within a year or so;
• If you have pets, it may be difficult to find a place that allows them on the property.

The best thing when renting is that you’ll have the freedom to move away if things don’t go as planned in your new city or if you find you actually like it better in another part of town.

Besides, when you decide to purchase a house, you’ll be able to make an informed choice as you will have explored the different neighborhoods in your new city and learned their characteristics (available amenities, entertainment locales, and recreational facilities; playgrounds, parks, and green areas; traffic peculiarities and transportation options; crime rate and safety; social, demographic, and ethnic characteristics of the communities; school districts; etc.). You’ll be able to find the perfect home in the perfect area to live in.

See also: How to choose your new neighborhood

Pros and cons of buying a home immediately after moving to a new city

Buying a home is a major financial commitment. Having your own home, though, and being in charge of your surroundings has many great benefits that make the investment more than worth it:

• You’ll have a place to call your own which will bring a sense of stability and security to your life;
• You’ll have a home that fits your needs and your lifestyle in terms of size, layout, available features, etc.;
• You’ll be able to arrange and decorate your new house or apartment as you please and make it feel like home;
• You’ll be able to settle in and find your place in your new community;
• Instead of wasting money on rent, you’ll be investing in your own property.

Buying a home in a new city, however, poses several major risks:

• You’ll have to make a hasty decision, oftentimes without even having the chance to see the available housing options in person, and may end up buying an inappropriate property;
• You won’t know the peculiarities of the different neighborhoods in your new city and may buy in an area you might regret later;
• Immediately after a big move, you may not have the finances to afford a property that meets your ideal home requirements;
• The hassle of hunting for a new home, closing the deal on your new property, and getting your new place ready to move in will take plenty of time and energy and will add to the moving stress.

The worst case scenario when buying in a new city without really understanding the different neighborhoods is to get stuck in a home and/or neighborhood you don’t like because your property’s value declines (or even stays flat) and you can’t afford to sell as it would mean losing a lot of money in paying off the mortgage and the closing costs.

Is it better to buy or rent a house when moving to a new city?

So, now that you know the pros and cons of both alternatives, should you buy or rent a home when moving to a new city? As is often the case, there is no definite answer – it all depends on the particular circumstances in your case.

Renting in a new city is the recommendable option when:

1. You’re unfamiliar with the area;
2. You don’t have a job in your new city yet (so you can’t plan for your commute);
3. You don’t have school-aged children;
4. You can get a month-to-month lease. (See also: How to find temporary housing when moving)

Moving to a new city and buying a house makes sense when:

1. You know your new city well;
2. You have a big family and need a lot of space (renting a large house can be rather expensive);
3. You have school-aged kids (See also: How to move with a school-aged child);
4. You have a relocation package that covers all your real estate commissions, fees, and expenses. (See also: How do relocation packages work)

Ultimately, the decision whether to rent or buy in a new city is yours – the right choice is the one that works best for you. Good luck with your relocation endeavor and your new life!