College is one of the most impactful steps in life. This is a time where students learn independence, figure out what they want in life, and aim to reach their career goals. While nowadays many US citizens need to go to college if they expect to have a fulfilling career, college life is expensive. Many universities require students to live in college dorms for at least 1 year, their freshmen year.
Afterward, students are free to live on or off-campus which begs the question, which is better: buying a house or just renting? This can be a tough question as there are so many factors that need to take place such as your income if you can get help, your current financial status, and your long-term goals. This article will help you out in narrowing down which is better for a college student.
1.What can you afford?
It all really comes down to what you can afford. Do you have the funds for a down payment on a house? What are the repair costs? You’ll also need to keep in mind whether the bank can approve you or not. However the same can be said for renting. Many landlords require proof that you can pay your rent on time through credit checks and a hefty deposit.
2.Think of the cost of living
This is something that’s going to heavily depend on the area that you’re going to college at. In some busy cities such as San Francisco or New York, the cost of living is expensive. This goes for purchasing a house or even just renting. While purchasing a house is going to help in the long run, it can be unachievable if the average price for buying a home is close to one million dollars.
3.Can you get a mortgage?
For many people who are wanting to buy a home, getting a mortgage is what stands in the way. Mortgages have been far more difficult to get since the 2007 recession. Some college students don’t have sufficient funds or enough proof to show that they can buy a home and pay their monthly mortgage payment on time. In this case, some students will ask their families for help, but it’s not always an option.
4.Understand the risks of renting
There can, unfortunately, be some risks to renting, though this is mostly due to the type of landlord that you have. This can include the rental price going up, the landlord refusing to do any repairs or maintenance, or even harassment. Wharton Rentals is a committee dot helping the students in Athens, OH is having a positive experience. They help with finding you good options.
5.Think about your long term goals
If you can afford a mortgage and you can afford a good rental, you should then think about your long-term goals. Do you see yourself living in the town you graduated from? Do you know if it’s like or not to get a well-paying job there? While purchasing a house is fantastic for real estate investing, it is something that takes a lot of commitment. Some mortgages won’t allow for renting, or selling for a certain period either.