Moving to a new city is a big step in anyone’s life. People move for all kinds of reasons. They found a good job, they wanted to start a business, or they got admitted into a college of their choice. 

Regardless of their reason, they will be faced with numerous challenges that come with moving to a different city. 

One of the biggest choices that city movers need to make is whether to buy a house or just rent. These choices have huge implications and can have life-changing effects down the line. So, it is very important that you think about them carefully. 

In this article, we will provide various reasons and considerations that will help you make a proper decision that you won’t regret. Let’s begin.

Renting After Moving

Renting after moving can provide various benefits and advantages. If you are moving to a city that you have never lived in before, then by renting a place, you will be able to do the following things.

• Try out a new neighborhood without the commitment of a house. If, for some reason, you don’t like the neighborhood, then you can simply move away.

• Learn about the places near your place of work/study and how far anything is from your abode. Sometimes, places look nice on paper, but actually living there means that you have to drive 40 minutes to get to the convenience store and other amenities.

• You don’t have to handle repairs or maintenance, as that is the landlord’s business. So, it's kind of stress-free to live while you are handling the emotional and mental load of moving to a new city.

• If you can find a place to rent that doesn’t have binding leases or lets you stay short-term and then move onto a lease, then you can keep things flexible. If your job, neighborhood, or lifestyle doesn’t pan out, then you can move again to a different place.

So, basically, the benefits are akin to doing a test drive of your new place. If you like it, you can keep it and so on.

Considerations Before Renting

While renting is great and all, it does have its own asks. You need to be prudent about them and see if they are deal-breakers or not. Here are some of the most important ones that you need to care about.

• It's hard to find rental spaces that are cheaper than a house mortgage. Rent-controlled areas are typically full or have binding leases that can shoot you in the foot if you don’t like the neighborhood.

• Most apartments and rental spaces are small, so you can’t store everything you have. If you are moving long-distance with everything you own, then you will need to hire long-distance movers who provide temporary storage options at affordable rates to keep your excess belongings somewhere safe.

• If you can’t find a good rental space close to your work and amenities, then you will quickly rack up considerable fuel or commute charges that eat into your monthly budget.

Keep these in mind before deciding to rent apartments or houses in a new city.

Buying a House Right Away

Typically, buying a house in a new city so that you can move into it is not an advisable approach. However, in some cases, it can make a lot of sense.

Buying a house is smart if the following conditions apply to you.

• You know you’ll be in the city for years, not months. This can be due to your job, family situation, or maybe your studies. But if you know that you are going to live here for a long time, then buying a house is better than renting. 

• You’re financially stable and not stressed by the idea of sudden home expenses. Then by all means, buy a house, as that is far better than renting financially.

• You’ve visited and researched neighborhoods enough to know where you’d actually enjoy living. Typically, this step is precluded by a small period of renting, too.

• You like the idea of building equity instead of watching rent disappear each month.

Make no mistake, though, buying a house is a long-term investment, and you should be prepared for it. Unlike a rented apartment, you can’t just leave your house and move.

So, with that said, let’s check out some important considerations to account for before buying a house.

Considerations Before Buying a House

These are things you need to think about before buying a house, especially in a new city.

• Financial readiness. Buying a house is not a simple one-and-done affair. You have to make sure the overall costs, such as mortgage, taxes, insurance, maintenance, and potential repairs, all fit comfortably within your long-term budget.

• Have a good idea of the market have an exit plan too. Look into market trends and potential risks like environmental factors or poor resale prospects, to avoid being stuck with a depreciating asset.

• Check for any environmental and location based risks. Climate, flood zones, and crime rate in the locality can affect both costs and quality of life. So, check them in detail before committing to a purchase.

Renting VS Buying: A Quick Comparison

Here is a summary of renting and buying that you can consult quickly.

Renting:

Buying:

So… What’s the Better Move?

So, what is the better move? Well, for most people, the answer is renting. After all, you cannot reasonably know enough about living in a new city that you can make a decision about buying a house. 

Buying a house in the current market only makes sense if you are rich enough to afford it without throwing the rest of your finances in disarray. Or you are going scorched earth and totally cutting ties with your previous city.

Our recommendation is to rent for a little bit to check out the area and if you are satisfied then buy a house.