Rent or Buy?

[Greenman100]

I need some advice on my housing situation. My wife and I recently graduated from college as teachers and have $46000 in student loans. We are moving to northern BC this fall to start our teaching careers. Our combined income for a year is around $60000 before taxes. We are trying to decide whether we should rent or buy while living there. We have about $3000 in savings. Finding rental property is extremely difficult. At the same time I fear we don't have enough for a downpayment on a house. What would you do if you were in our situation?

[financialnoob]

I think you have to rent for a while, and reduce your expenses as much as possible, as you'll need to pay down the student loans while also saving up for a down-payment.

[KaeJS]

With $46,000 in Student Loans....

You must rent.

You are $43,000 in debt, and your jobs will be fresh.
With all that being said, I don't even know if you would qualify for a mortgage.

[Dmoney]

I would lean towards renting if only because in a new job in a new location, who knows what will come up. You may love it and want to stay forever, or you may find a better opportunity somewhere else. Either way, a year of renting will allow you to feel out the job/city and see if it's what you want longer term.

Also, obviously less stress in renting than in owning, so it's a good opportunity to pay off as much debt as possible and get as financially sound as you can before you get into ownership.

[Cal]

Rent. Save. Have a little patience about jumping into the RE market.

[the-royal-mail]

Wow I must say I am pleased at the responses to this thread. Needless to say, I agree with all and might go one step further and suggest a LOT of patience prior to jumping into RE. Take your time, don't fall for the rhetoric about prices going up so fast and RE always being a safe bet or the usual rhetoric against renting. In your own situations, renting is perfectly normal and acceptable. You need to spend the next few years finding yourselves in the work world and seeing where you end up.

[cannon_fodder]

Canadian Business Magazine had a really eye opening article on whether it is better to rent or buy. Their conclusion, from a purely financial point of view, is renting is better for your financial health.

If you don't want to buy the magazine, check your local library for their latest copy. Or perhaps they will have it online soon.

[kcowan]

Northern BC? Have you ever lived there before? You might need to experience for a year before making any long term commitments. If you are talking Prince Rupert, then it gets almost no sun all year. OTOH Prince George is more like Alberta.

[MoneyGal]

Canadian Business Magazine had a really eye opening article on whether it is better to rent or buy. Their conclusion, from a purely financial point of view, is renting is better for your financial health.

If you don't want to buy the magazine, check your local library for their latest copy. Or perhaps they will have it online soon.

I assume it is this article - I posted it here a little while ago:

http://www.canadianbusiness.com/arti...rental-complex

Very worthwhile read.

[the-royal-mail]

Brilliant MG, absolutely brilliant. And thanks cannon-fodder for bringing it up.

specuvestors, I love it.

Indeed, the gap between rental and ownership is larger than it's ever been. I don't see the snob appeal to home ownership. I think for a lot of people, renting makes the most sense. Of course, these people are regularly marganized and chastised by those who blindly follow the anti-rental rhetoric.

Good article and should be mandatory reading prior to every new ID's first post in the RE section of this forum.