med student: buy or rent?

Question

i am medical student and i am currently renting.  I do not have an income (my wife is a student until april), but i am given $30k to live on (loans).  I am trying to decide whether we should buy a house, condo, or continue to rent.  I have no experience in this area and I am in need of advice.

I need to live in detroit and the minimum time we will spending here is 2 yrs, but it could be as much as 8yrs, depending on where I go for training after med school.  After april, my wife expects to be able to make $30-50k/year starting out.

Where do I start? Thanks for your help.

Jason Barnett · Answer

I would rent for two reasons:

1.  The costs really add up if you're going to move in a short period of time.
2.  Detriot is not exactly a "hot market" so it's not like you need to worry about locking in your purchase price now to sell later.  I think you will see some moderate growth, but nothing to get excited about in 2 to 8 years.

Mark R · Answer

I'd deffinitely rent. There are a lot of hiden costs associated with owning your own home. As a tenant you won't have to worry about that. You can focus on your schooling and your medical career. After you can buy all the homes you want. GL in Med school!

N/A N/A · Answer

Yes, 2 years left.  Thanks for your advice... it sounds like you have some experience with the medical school process..

@dcg123:  where would i find this info?  thanks for the help.

Dick Green · Answer

Some of the questions to consider are......
1.  How much property do you get for your money renting?
2.  How much property do you get for your money buying?
3.  How liquid is the condo market in the area?
4.  What is the rate of appreciation in the condo market?
5.  What's the worst case scenario if you have to sell in two years?

Good Luck

N/A N/A · Answer

Of course you have to look at the actual numbers, but in your situation you may be better off renting. It sounds like you graduate in 2 years. My guess is that you will be going through the match and you won't have as much control over where you end up as you would like. Three things you do not want to happen are (1) forced to sell below market because you have to be at your internship halfway across the country on July 1 no matter what, or (2) have your ownership of the house influence how you fill out your match list or (3) be forced to live a year or more away from your wife because of the investment.