The decision to own or rent greatly depends on where you are in your career. Whether you’re a new resident or you’ve retired from practice will have a huge impact on the decision to rent or own as a doctor. For most doctors, after residency, it will make sense to buy, but not always.
Those in residency have a much different decision as they may be moving as soon as they complete their residency. There are several factors to consider before deciding to buy or to rent. Here’s a look at some of those factors to help you decide if it’s the right time to buy a home or if you should continue to rent.
How Permanent is your Position?
For many doctors or future doctors, moving is just a part of the territory. You may have moved when you went from your undergraduate degree into medical school and you may be preparing to move again as you complete your residency. Even once you’ve entered your field of work; it’s possible you could move every few years, depending on the opportunities and the type of medicine you practice.
One of the biggest factors in the decision of a doctor to rent or buy is how permanent the position you currently hold is and will be in the future. If you believe you will be working at the same location, in the same city for several years, buying makes sense. However, if you’re unsure if you’ll still be working at the same place, renting may be a better choice.
What’s your Financial Situation?
The financial situation of a physician changes over time. Often, you’re dealing with paying off massive student loans when you first graduate from medical school, but these loans won’t be there forever. Your financial situation will also play a rather large factor in the decision to rent or buy.
However, it may not play as big of a role as you might think. With the ability to use what is known as a doctor loan or physician loan, you may be able to buy with little or no money down, even if you have huge student loans to pay off and you don’t make a ton of cash yet.
The doctor loan program mitigates the risk for the lender by using future earnings as a factor. They come with several benefits, such as no need to purchase mortgage insurance and you don’t necessarily have to have paystubs to prove your income. Often, these loans will use an employment contract showing proof of future earnings and you will likely be required to keep an account with the lending bank for automatic electronic payments.
There are benefits to buying a house and renting a house for doctors. Not every situation is the same. However, if you plan to stay put for at least a few years, it makes more sense to buy than rent, in most circumstances.
Buying a home is an investment and allows you the ability to actually put your money into something you own instead of something your landlord owns. However, if you’re not sure how permanent your current position is, renting until you have a more permanent situation might be the right choice.
There is no wrong or right answer, but doctor loans do make it much easier to buy. When you buy, you also have the opportunity to turn your first property into a rental property when you’re ready to upgrade. This is also possible if your situation changes and you need to relocate for a new position.
45 Sycamore Drive, #1614, Charleston, SC 29407
For Sale: $189,900, Listed by The Pulse Charleston
Look no further! Fantastic condo listed for a great price! Perfect for professionals or students who need a low maintenance starter home with easy access to downtown or Avondale shopping, restaurants, and night life. Gated community with amenities, including two pools, two tennis courts, and a fitness center. Dog park/walking trails nearby too! First floor unit with two bedrooms and a private porch. COMES WITH A ONE CAR GARAGE! Unit is conveniently located next to one of the pools and an easy entrance out of the complex. Recent upgrades include smooth ceilings, painted walls throughout, hardwoods, stainless steel appliances, painted cabinets with new hardware, a new sink/faucet in the bathroom, new hot water heater, new shelving in the garage, and a new garage door opener! Great opportunity to own a turnkey condo 5 minutes from downtown under $190K!
322 Clayburne Drive, Goose Creek, SC 29445
SOLD: $225,000, Listed by The Pulse Charleston
4 Bedrooms, 2 and a half baths, with a loft/bonus area on a large private lot all for only 225K?! The open floor plan downstairs has wood-laminate floors in the main living areas, a roomy kitchen with lots of cabinet and counter space as well as a bedroom with a half bath for guests. Upstairs is the large master suite with walk in closet, two additional bedrooms, a hall bathroom AND a loft currently used as a playroom. Don’t miss the airy screened porch, deck perfect for entertaining and the fully fenced backyard. Enjoy the privacy of woodlands behind the home and tons of storage in the two car attached garage! Liberty Hall has a beautiful pool, clubhouse, tons of walking trails and a playground. Don’t miss this house!
0 Stonewood Drive, Charleston, SC 29412
UNDER CONTRACT: $149,900, Listed by The Pulse Charleston
One of the only remaining vacant lots in James Island’s most charming community, Riverland Terrace, is now available! The coveted and historic neighborhood is home to the Avenue of Oaks, a 100 year old grand oak tree canopy that once led to Wappoo Hall Plantation. At the lot, you’ll marvel at the possibilities on this majestic oak-lined property set beautifully between historic Riverland Terrace homes. A true Charleston paradise! Riverland Terrace residents also enjoy a neighborhood boat dock, recreational fields, and a waterfront playground and picnic area. Walk to the best local shopping, restaurants and movie theater, at Terrace Plaza, or cross Maybank Highway to enjoy evening music at the Pour House. Only 10 minutes to downtown!
489 Sanders Farm Lane, Charleston, SC 29492
For Sale: $428,500, Listed by The Pulse Charleston
Gorgeous elevated home, just 3 years old, located in the Retreat at Beresford, 1.5 miles from I-526, a few minutes to Daniel Island. This open floor plan has hardwood floors, granite counters, tons of cabinet space, a tile backsplash, double ovens, 9 ft ceilings and a roomy master bedroom downstairs. Upstairs has a large loft area, 3 additional bedrooms, large bathroom AND an office. Relax on the screened-in porch and catch a breeze from Nowell Creek at the end of the street! The lot backs up to protected wetlands to ensure future privacy as well. Come see 489 Sanders Farm Lane today!