Is It Better to Rent or Buy When Moving to a New City?

One of the first things to do when moving to a new place is to search for an appropriate new home for you and your family – a house or an apartment that suits your lifestyle, meets your needs, and fits within your budget; a place that you can turn into your dream home.

If you’re moving to another city or state, however, finding the right place may not be easy – you may not know the area, may not be familiar with the peculiarities of the different neighborhoods, may not be able to view potential properties in person, etc. You need to spend some time actually living in the area, exploring the different parts of the city, and researching the available housing options in order to make an informed decision and choose the right home for you and your family.

Therefore, many experts suggest renting for a few months before buying a house in a new city – so you have the chance to test the water, get a feel of the city, and find the perfect place to call your home. As reasonable as this may sound though, renting instead of buying will make your move even more complicated – it will be difficult to decide which of your old items to take along when you don’t know what your new home will be like, you may need to put some of your belongings in storage, you will have to move twice within several months, etc.

So, should you rent or buy when moving to a new city? Both options have their advantages and disadvantages – you need to consider them all in order to figure out what will work best for you.

Should you rent first when moving to a new state or city?

To find the answer to this bothersome question, you need to be well aware of the pros and cons of renting in a new city:

Advantages of renting when moving to a new city

Renting may be your best option when moving to a new area because it helps you make an informed decision, gives you flexibility, and takes away some of the stress inherent to the relocation process:

• You will be under no pressure to make an important decision – choosing the home you and your family are going to live in for years to come – in the midst of the hectic relocation period {so there will be less stress};
• You won’t need to spend time, money, and energy searching for a new home while dealing with arduous moving preparations and relocation tasks. You will be able to focus on your move and organize it perfectly {so there will be less stress – and a higher chance of successful relocation};
• You will have time to unwind and relax before you start setting up a new home, building a new routine, and adjusting to a new environment, a new community, and a new life {so there will be less stress};
• You will have the chance to explore your new city, get an idea of the atmosphere in different neighborhoods, and find out where exactly you would enjoy living (in terms of location, infrastructure, crime and safety, amenities and services, school districts, green areas, entertainment options, community life, etc.) {so you’ll be able to make an informed decision};
• You will be able to carefully research the real estate market in your new area, look at properties for sale, attend open houses, and choose just the right home for you and your family {so you’ll be able to make an informed decision};
• You will be able to complete any repairs and desired renovations to your new home before moving in {so there will be less stress and greater convenience};
• If you can’t find an appropriate house or apartment right away, you will be able to wait until one becomes available {so you’ll have great flexibility};
• If things don’t work out in your new city, you will be able to quickly and easily move away – as you won’t be tied down by a mortgage and a newly-bought house {so you’ll have great flexibility}.

It is much easier to find a place to rent than to find an appropriate property to buy and the stakes are much lower (because you know that it is only a temporary situation) – so renting when moving to a new city helps make your relocation simpler and less stressful.

What’s more, renting gives you the chance to test out different neighborhoods and learn their characteristics, so you can look for a property to buy in the part of the city that you like best. And of course, you can tour potential properties in person and choose a house or apartment that meets all your needs and preferences (in terms of size, layout, available features, price, etc.)

Buying real estate is a huge investment and a huge commitment – you need to be sure that you have found the perfect home in the perfect area before making such an important decision.

Drawbacks of renting when moving out of state

Even though it makes a lot of sense to rent for a few months before you buy when moving to a new city, the disadvantages of doing so should not be overlooked:

• You won’t know what kind of home you’re going to live in, so you won’t know what is worth moving and what is not;
• You may have to put some of your belongings in storage – and pay for it – if your rented property is furnished or isn’t large enough to accommodate all your things;
• You won’t be able to settle in and feel at home when living in a short-term rental;
• You’ll have to move again when you purchase a permanent home in your new city. It will be just a move across town, of course, but moving twice within several months will be tough on your budget – and on your nerves;
• If you have school-aged children, they may need to change schools for a second time within a year;
• If you have pets, your renting options may be limited;
• If you owned a home before moving to your new city, renting may feel like a step backwards.

While renting before buying a home in a new city seems like a smart financial decision (as you’ll be able to learn the ups and downs of your new city, research your housing options, and make an informed choice before investing in a property), you may end up losing money in the end – as you’ll be paying rent to a landlord instead of paying a mortgage for your own house and your second move will incur some extra expenses as well (not to mention the potential storage costs).

Should you buy a house when you move to a new city?

Moving to a new city and buying a house is the fastest way to restore a sense of normalcy and stability after the move and get settled into your new life. Yet, it poses several major risks.

Benefits of buying a home in a new city

Finding an appropriate new home to buy when moving to a new city will give you peace of mind and will make your relocation easier:

• You will know the type, size, dimensions, and layout of your new home, so you will be able to make a floor plan of your new place to see which of your old items will fit in and will be able to make an informed decision about which of your belongings to bring along and which ones to leave behind (See also: How to decide what to take and what to throw away when moving);
• Your items will be delivered directly to your new home, so you won’t need storage – and won’t need to worry about organizing and performing a second move;
• You’ll have a home that suits your lifestyle and meets your needs and preferences – and you’ll be able to set it up the way you like. You will have the chance to create your dream home and be happy in it;
• You will be able to make your new place feel like home within weeks after the relocation;
• You’ll have a place to call your own which will give you a sense of stability and security;
• You’ll be able to settle in, become a part of the community, and adjust to your new life quickly and easily (See also: How to adapt to a new environment after moving);
• If you have school-aged kids, buying a house will ensure that they won’t need to change schools twice within a short period of time and will help them feel grounded in the new environment – they will be able to get used to their new school and their new surroundings, to make friends and form relationships, etc. (See also: Moving with kids);
• You’ll be investing in your own property and building your equity instead of wasting money on rent.

Buying a home will help you lay solid foundations to your new life and will give you a sense of belongings to your new area. On the other hand though, it will be a great financial risk and will add extra hassle to the hectic relocation process.

Disadvantages of buying a home when moving to a new city

As much as you may want to have your own home and settle in, buying a house in a new state or city is quite risky – and quite difficult:

• You’ll have to make an important decision without having enough information – you may not be familiar with the peculiarities of the different neighborhoods in your new city and may not have the chance to see the available homes for sale in person, so you may end up buying an inappropriate house in a part of the city that you may not like when you start living there;
• Hunting for a home, closing the deal on the property, and getting your new place ready to move in will take a lot of time and energy and will make the moving process even more complicated and more stressful;
• You’ll need A LOT of money to buy a house (or at least make the down payment), fix up the place, furnish it, decorate it, etc. – and you may not be able to afford such big expenses immediately after a big move (moving to another city or state is quite an expensive affair);
• Anything can happen (you may not like your new job or your new area, may get a better job offer in another city, etc.) and you may need to move away again only a couple of years (or even just a few months) after moving to your new city – being stuck with a mortgage and a home will make it extremely difficult to do so.

If you make a hasty decision and buy a house in your new city and then it turns out that the property isn’t right for you or you find you like another neighborhood better or things don’t go as planned and you need to move again, you will have to sell your newly-bought home.

This will take time and effort and you’re likely to lose a lot of money in the process – your property’s value may decline in the meantime or even if it stays flat, you will still lose thousands of dollars in closing costs, realtor fees, etc.

So, should you buy or rent when moving out of state? Both options have their pros and cons – you need to weigh them carefully and make the decision that makes the most sense for you and your family.

Is it better to rent or buy when you move to a new city?

While renting is generally considered the safer choice, sometimes buying can be the smarter option – it all depends on the specific circumstances in each individual case:

It is better to rent before buying when:

• You don’t know the area;
• You can’t afford buying a property that meets your requirements;
• You are single (as there will be various legal challenges related to the ownership of a property when you get married);
• You want to live with a roommate so you can cut down your housing and living expenses;
• You don’t have school-aged children (as you won’t need to worry about them moving from school to school and neighborhood to neighborhood);
• You don’t have a job in your new city yet (as you may end up stuck with a long commute if you buy a house in one part of town and your workplace is located in another –  renting will give you the freedom to move close to your workplace when you get a job);
• You have to move on short notice (as it is easier to find a suitable place to rent than to find an appropriate home to buy – and go through the process of buying it).

If you decide to rent in your new city, make sure you get a month-to-month lease (so you can leave with a 30-day notice when you find an appropriate home to buy) and rent a place large enough to accommodate all your belongings so that you don’t need to pay for storage (unless it makes more financial sense to put most of your items in storage and rent the smallest place possible).

Related useful information: Tips for moving to temporary housing

Buying in a new city is the better option when:

• You know your new city well and know exactly where you’d like to live (See also: How to choose a good neighborhood to move to);
• You have found a home that meets all your needs and preferences and have the finances to afford it;
• You have a large family – and several pets – and need a lot of space (as renting a large house will be quite expensive. Besides, it will be easier to ensure the comfort of your kids and your animal friends when living in your own home and it will be easier for your little ones to adjust to the new environment when they don’t need to move from place to place.) See also: How to move with a large family; How moving affects children; How moving affects cats; How moving affects dogs;
• You have school- or preschool-aged children and have found the right new school for them (as you will want to live in that school district);
• You have a lot of items (as renting a large storage unit will cost you a pretty penny);
• Your company has offered you a relocation package that covers the closing costs and various fees on the purchase of a property (as the company takes away the financial risk of buying a house in a new area) See also: How do relocation packages work

If you decide to buy a home in your new city, be sure to buy in an area where homes sell easily – you never know what may happen and how soon you may need to sell the property and move away.

When asking yourself “Should I buy or rent?”, you need to assess your needs, your current situation, and your aspirations for the future, weigh the advantages and disadvantages of both options, research the real estate market in your new area, and decide what will work best for you and your family. May you create your dream home and build your dream life in your new city!

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