If you’ve just graduated from college, or will soon, a big question you have to answer is, “Where will I live?”
Although hardly anyone graduates from college and immediately buys a home, especially these days. The rent or buy conflict can be especially difficult for GenY, which has a tendency to dislike commitment or feeling stuck in one place.
But Millennials are graduating with the largest amount of student debt and fewest job prospects of any generation, so the pressure to be financially responsible is enormous.
When short term renting is your best friend
If you’re starting out in a career you aren’t sure about, a short-term lease rental is your friend. You can find monthly, three-month and six-month leases, although they aren’t common. Sometimes property managers who don’t normally offer short-term leases will be open to negotiation if they have an excess supply of apartments.
Short-term leases enable you to travel from place to place if you happen to have a freelance or mobile job. If you decide to take that South American backpacking trip, you’ll be glad your lease is only six months.
When long-term leases make sense
Maybe you’re early in your career, but you know you’ll be in the area for a while. You could be like many college graduates who take a job to pay off student loan debt knowing it isn’t the right career path for you. Taking that customer service job will pay the bills and be a good addition to your resume. This allows you to safely sign a year-long lease, knowing you won’t be switching jobs within a year.
Even if you’re starting a great career and have no plans of leaving, renting for a few years can help you save up for a down payment on a home. It allows you to get to know the area better and take your time finding a great deal on a house.
Every situation is different, and every market has its own set of challenges. Looking to the upcoming year, real estate experts predict that mortgage interest rates will rise.
Take a hard look at your finances, situation and life goals. Buying a home means commitment and establishing yourself for a set period of time, whereas renting has no strings attached and allows you flexibility.