Renting Versus Buying for College Graduates

Many people who are just now entering into the work force after college graduation are wondering what they should do real estate wise. Should they rent or should they buy? This is a difficult question to answer. Houses on the market are going for reasonably low prices, which means you could get an amazing deal if you choose to purchase a house. However, with the number of foreclosures increasing everyday, as well as banks giving out less and less home loans, the thought of buying in this time puts a edge of panic in most people, thus they turn to renting.

So what is best? Consider your personal situation to answer this. For one, do you have a steady job that is going to be there no matter what? If you are with an age old company that has survived thus far, you may seem pretty confident about your job security. However, those who are starting out with a new company, may not be so confident. In addition, consider this, can you afford all the extra expenses that go along with owning a home? The home insurance and fixing repairs should something go wrong are just a few examples of the common household expenses that are on top of the mortgage. When you rent, you do not have to worry about this since your landlord takes care of the problems that arise.

A person should also consider this, a home is a purchase that is supposed to be made for those that are in it for the long haul. So consider, do you plan on staying in the area for the rest of your life? If not, buying may not be the option since it is hard to sell a house if you do plan to move given the current state of the real estate market. If you see yourself in the area for years, then do consider buying as it could save you in the long run.

For those that are new in the work force and right out of college, you should really think about the decision of buying a house versus renting for a long time. See how your bills are adding up and if you can really afford a home. Most college graduates are swamped with student loans and credit card bills, if this is the situation for you, then you may want to consider renting until you know you can afford a home. Nothing ruins credit scores faster than having a foreclosure on your record.