When looking at any decision, you always need to take a close look at both sides especially when you are making a major financial and life decision. New medical residents are probably thinking hard about whether they are better off buying a house or renting in the new city they are moving to. There are some good reason why renting might make sense: Maybe housing in the city is too expensive like New York or Boston, or maybe there aren't that maybe good options close to the hospital or maybe you think that renting is just a better option for you. Whatever the reason you might be thinking about renting, all residents should really take a close look at the positives of buying a house during their residency. A house can really be an oasis that will offer a quiet place for relaxation during this hectic and rigorous training period. And it is a lot more attainable than you might realize, especially in a city like Philadelphia as compared to New York or Washington, DC or Boston. There are tons of benefits to owning a house, many of which are unique to the individual and can turn on factors that aren’t attached to real estate or the medical profession. Here are some of the many reasons why residents should think hard about buying a home when they first move to a city.
There are many attractive loan options exclusively for medical residents and fellows. Banks love the stability of income that a doctor receives for the rest of their career and are willing to be understanding about higher student loan balances compared to the income potential and human capital that you’ve acquired. There are many options that include 0% down and low mortgage rates. Mortgage rates in general are extremely low right now as well. We at MedAbode know the best local and national lenders for these products and are happy to provide introductions during the process.
Living in a studio apartment can take its toll especially while you’re working long hours. Buying a property and getting a little extra space can provide the needed room return home after a long shift. Discuss what you or your family may need before finding the best place for your next move.
Extending training by 1-3 years beyond residency for a fellowship or sub-specialty training? In this case, if you plan to stay at the institution where you did residency, it makes sense to buy. With the multitude of fellowship and other hospital options, the chances are higher that you would be able to find a position in Philadelphia to suit your needs. The longer you stay in a city, the more benefits you can derive from buying as far as mortgage paydown and home price appreciation.
If you’re able to, you could possibly rent a room to a fellow resident that could provide extra cash for you every month and help out with the mortgage payments. You could also eventually move out of your property and rent it to another tenant.
In general, home prices have gone up in more years than they’ve declined. This is not to say that you’re guaranteed to make money buying a home and we all know that price swings in real estate go down as well as up, but, long term, real estate tends to be a good investment especially in cities with strong medical communities like Philadelphia. By paying your monthly mortgage payment you’ll also be decreasing the amount that you owe on the home.
This isn’t the make-or-break decision but the interest on your primary residence mortgage should be tax deductible. You will have to talk with your accountant or run the numbers yourself to see if this benefit will actually have any impact on your decision to buy. In addition, if you end up eventually renting out the property there are a myriad of tax benefits including the ability to deduct depreciation and other eligible expenses.
Living in an apartment usually means that you are not able to personalize your space as much as you might like - no painting on the walls or changing out the fixtures on the sinks. Buying a house or a condo allows you to make those changes that make your house a home, especially after a long shift.
Buying a home instead of renting often allows you to establish roots in a desirable neighborhood instead of the more transient feeling of renting. This ownership usually comes with an added sense of community with your neighbors and local happenings in your area. We know all the best communities that are convenient for your commute and right for your lifestyle.
As a resident or medical professional, you will have access to the time savings and efficiency that come along with the MedAbode platform such as your own personal assistant and financial experts.
MedAbode who can outline everything that you should be thinking about and in the process make your homebuying experience smooth and productive.