Relocating to a new area? When is it best to buy, and when should you stick to renting?
We were just interviewed by AARP for an article on “How House-Smart Are You?” in the June 2018 AARP Bulletin.
We were asked when it makes sense to buy, and when you’re better off renting. It’s a topic we frequently discuss with clients when they relocate to warmer climes after retirement, or move during their working years to take on a new job.
Buying is often a great option, because it lets you take advantage of tax benefits and build equity. But buying also involves sizable transaction costs, so it’s normally not a good idea to buy unless you plan on staying put for five or more years.
Take some time to get to know a new area before you buy a home, and consider renting for a year or so until you get the lay of the land. After all, you might change your mind, or discover there’s another town or neighborhood that better meets your needs.
That’s why we told AARP that if you’re making a big move or lifestyle change, it’s wise to “rent for a while to see if you like it” before taking the plunge.
So how smart are you about home buying? Check out the full article and test your house-smarts here.