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Buying during residency/fellowship – what am I missing?

Home Mortgages and Home Buying Buying during residency/fellowship – what am I missing?

  • Avatar Tim 
    Participant
    Status: Accountant
    Posts: 3030
    Joined: 09/18/2018

    “It isn’t a no-brainer one way or the other”
    Think this is straight number.
    Is there any risk differential and how much do you think you will you be compensated?

    By the way, you definitely can afford to rent. I guarantee it will be a lot faster. Every week it will be faster! Think about it. Are you cutting grass or fertilizing this weekend? Always something to do with a house, not critical but it’s waiting.

    Just don’t understand. More risk and more hassle for what benefit? Makes zero sense.

    #205342 Reply
    Avatar fasteddie911 
    Participant
    Status: Physician
    Posts: 304
    Joined: 05/31/2016

    It’s not always a money or numbers issue, but the hassle factor of buying, selling, maintenance, etc.  I rented thru my training years and it was pretty painless.  Maybe I could’ve been better off owning and worth the hassle factor, but I didn’t care to take that chance.  The downside of owning not working out well was much greater than the downside of spending more money by renting.  Everyone is different, some folks like owning and/or hate renting.  I had colleagues insist on owning even for 3yrs.  I don’t mind renting at all and would even rent as an attending w/o hesitation.

    #205397 Reply
    Avatar Dont_know_mind 
    Participant
    Status: Physician
    Posts: 944
    Joined: 11/21/2017

    Go join some real estate investing forums.
    I bought a house as a first year resident and lived in it for a few years. It appreciated from 300k to 600k in 7 years and worked out well for me. But other people have horror stories.
    The gains you’ve seen are high but do happen during booms. I have seen more 50-100% increases during a 4 year boom.
    There is a ripple effect in a lot of places. So I would tend not to buy immediately after a big boom. As it may go nowhere in the next 5-10 years. Yes, look at the ripple areas that have not appreciated yet but are substitutes. Study historical price movements in the area. Learn from people you know with real estate experience.
    What you are asking is very basic. Make sure you don’t get ripped off.

    #205403 Reply
    Avatar Jack_Sparrow 
    Participant
    Status: Physician
    Posts: 72
    Joined: 01/09/2019

    I was in a similar situation. Income ~140k, had 5 years of training ahead of me. We were ready to buy a home.. Found a perfect little home @ 240k (we live in LCOL area, so median home price), had all the amenities we wanted, we didn’t owe a penny of property taxes on the home for the next 10 years(special tax abated) so saving an extra $5000/yr. It was new construction so risk of maintenance was limited. Stars were aligning and the excel spreadsheets showed booming profits when we sell after 5 years… even factoring standard maintenance, realtor, no appreciation, etc. ……but probably the worst decision of my life 4 years in. Got in to the house, zoning/development districts were changed. Had some annoying neighbors. Had a couple of neighbors buy more house than they could afford in the new area and got foreclosed on. Housing value is likely to drop.

    Sure i might lose 10-15k, my pride will probably be hurt more than my wallet. but nothing offsets the stress and hassle I’ve had to put up with during residency. Sure this could be a message used against home purchase in general, but would have rather crossed this bridge when I was better positioned to say pick up and move somewhere else. We are basically stuck here for the next 5 years due to residency.

     

    #205413 Reply
    Liked by Zaphod, Tim, EndoRobert
    Avatar Dont_know_mind 
    Participant
    Status: Physician
    Posts: 944
    Joined: 11/21/2017

    I love developers, but I would not buy a new house or even vacant subdivisions from non-distressed developers. They love to sell a shiny new dream.

    #205421 Reply
    Liked by hatton1

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