Buying a house as a new attending

[Yo GabbaPentin]

What is the UPDATED consensus on buying a house as a new attending in our current market? I realize that in the past, the best thing to do is to rent for a while, see if you can stand the job, pay off debt, then buy a house. It seems like this is a fairly unique housing market though. There are very few certainties in any market, but this much I can be sure of... interest rates WILL go up. IMHO, inflation is getting ready to take off secondary to energy/food prices, Obama money printing, etc.

HOPEFULLY the housing market is near it's bottom, but if it's not, it really does not matter to me as I'm going to a location that I want to end up regardless of how the job turns out. I'm buying a place to live and not an investment property.

What does everyone think? If you were to become a new attending in the next 1-2 years, would you buy quickly after starting your new job?

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[deleted126335]

What is the UPDATED consensus on buying a house as a new attending in our current market? I realize that in the past, the best thing to do is to rent for a while, see if you can stand the job, pay off debt, then buy a house. It seems like this is a fairly unique housing market though. There are very few certainties in any market, but this much I can be sure of... interest rates WILL go up. IMHO, inflation is getting ready to take off secondary to energy/food prices, Obama money printing, etc.

HOPEFULLY the housing market is near it's bottom, but if it's not, it really does not matter to me as I'm going to a location that I want to end up regardless of how the job turns out. I'm buying a place to live and not an investment property.

What does everyone think? If you were to become a new attending in the next 1-2 years, would you buy quickly after starting your new job?

I still would follow the conventional wisdom. Don't buy a house initially until you feel out the job and think that you will drop anchor for awhile. While interest rates can only go up, that makes houses less affordable,i.e. prices go down. There is still downward pressure on housing other than the specter of rising rates.

 

[sevoflurane]

What is the UPDATED consensus on buying a house as a new attending in our current market? I realize that in the past, the best thing to do is to rent for a while, see if you can stand the job, pay off debt, then buy a house. It seems like this is a fairly unique housing market though. There are very few certainties in any market, but this much I can be sure of... interest rates WILL go up. IMHO, inflation is getting ready to take off secondary to energy/food prices, Obama money printing, etc.

HOPEFULLY the housing market is near it's bottom, but if it's not, it really does not matter to me as I'm going to a location that I want to end up regardless of how the job turns out. I'm buying a place to live and not an investment property.

What does everyone think? If you were to become a new attending in the next 1-2 years, would you buy quickly after starting your new job?

Sounds like you've made up your mind. Interest rates will go up, housing prices will continue to decline in most areas (DC and San Diego are the only cities that showed .1% increase last month), inflation is right around the corner/here and you will be one of few in the market to buy. If you indeed decided to buy, don't expect to sell it any time soonafter without taking a short term loss. That being said you could prolly get a great deal with a low interest rate.

I bought and I'm REAL happy with that... but where I live, I didn't have to drop bank on a house. I thought I got a great deal, but I bet my house is worth 5-10% less than what I paid for it a couple of years ago. I don't know....

These are great issues to have as people exit residency. A new leaf...

 

[lobelsteve]

Unless you grew up or trained for 4 years in that area, rent for the first year.

No advantage to buying other than the change in interest rate. And if you follow the Pain Physician forum, those guys say the housing market is still in the crapper and that reates ain't going anywhere.

 

[Yo GabbaPentin]

Unless you grew up or trained for 4 years in that area, rent for the first year.

No advantage to buying other than the change in interest rate. And if you follow the Pain Physician forum, those guys say the housing market is still in the crapper and that reates ain't going anywhere.

Thanks for the advice. Out of curiosity, why would it be acceptable if I grew up or trained in the area? For what it is worth, my family is now in the area. It is not a "desirable" area for most, but I love it. The market there is really in the crapper now. That's not to say it won't get worse, but it is extremely tempting when I can get WATERFRONT for less than I can get a condo for in my current city! I might have to just suck it up and wait though.

 

[Gern Blansten]

Thanks for the advice. Out of curiosity, why would it be acceptable if I grew up or trained in the area?

I think they mean that you will know better what the job will be because you are local and know people and you know whether you like living in that city. In addition, you will already know the area real estate and what homes are good deals, which schools are good, what homes will be easier to resell (in our city, one builder builds high end gorgeous custom homes that are really crappy once you look a bit closer and he never does the finish work he promises-no way to know that unless you already live in the city and know which builders are reputable). Those are the reasons that I can think of.

 

[michigangirl]

First of all Yo Gabbapentin-- LOVE 😍 your screenname. Best kids show ever. I know I'm a freak.

Second-- if your family is there and you know the area-- I say buy. I will be an attending july 1. Just pounced on a 4 year old short sale home at the right time, bank approved our offer-- got it 400 grand under market, with an interest rate at 4.875. Dream house. So happy. But I'd been trolling the market here for six months before I made an offer on anything.

Another caveat is I've been in this area for eight years and plan to stay here a long time. If you plan to stay there a long time because your family is there, go for it. Do you have kids? If you do, even more reason to buy. Moving is a pain in the A$s. Why do it twice? If your employer is paying relocation, etc., all the more reason.

Other option is to rent, keep an eye out for your dream place, then jump on it and break your lease if necessary. I know the market could get worse and interest rates may not go up. But if you're trolling the homesearch sites and see stuff you like, the mortgage company will use your new salary-- interest rates are crazy low-- that's what dreams are made of.

My two cents. People will disagree. It's all good.
Good luck and congrats on the new job!!!

 

[countingdays]

Even if interest rates go up, you'll pay less interest by waiting to buy, saving up a big down payment, and taking a shorter-term loan; especially if you end up with a lower purchase price.

I wouldn't buy unless you think prices are actually going to go up, rents are so high in your market that buying is relatively cheap, or you can get an amazing deal.

 

[icristi58]

I would rent and reevaluate after the first year on the job. It gives you a lot of flexibility in case the position does not work for you... Wish I would have done that...many years ago.

 

[Yo GabbaPentin]

Thanks again for the replies.

While I do not have a job yet, I have a 3rd interview in late June and all parties are interested at this point. It would be to start in July 2012 since I am going to be completing a pain fellowship next year. This job is in my top location (yet still technically not "desirable.") Yes, it is early, but time to start thinking about the issue. If I were to buy, I would probably start making offers in December, so my family could move right in by July.

So I am completely torn. There is a devil on one shoulder and an angel on the other.

DEVIL - "You should buy ASAP. You are 31 years old and have been living like a bum for the past 12+ years. Your wife and daughter deserve to finally have a place of their own and to know we are not moving AGAIN soon. You know you want to live in that area regardless of the job. If the job doesn't work, find a new one in the area. Yes, the market may still decline some, but you are buying a HOUSE and not a STOCK. Buy the damn house after December and moonlight to make the payments for a couple of months. Waterfront for $400K? How much cheaper does it have to get? Ignore the med school debt! It's locked down at 3.5% and is cheap money."

ANGEL - "DON'T buy ASAP. Save for a couple of years and get a big downpayment saved up. Rent in the meantime. If the job doesn't work out then you aren't stuck. Or you could even live like a resident for a few more years and pay off your 200K med school debt. The market still has not hit bottom and there will be plenty of houses available in a few years."

Still don't know which one I'll listen to. The angel seems smarter but the devil has some damn good points. Owning a house has been something we have been dying to do for a long time. The fact that it is actually doable now is killing us. We aren't into nice cars, fine dining, designer clothes, etc.... but we would LOVE a beautiful piece of land. The lot is what we'll pay for, not a 5000 sq ft house.

Thanks again for the advice.

 

[michigangirl]

I've made it clear I'm with devil. With a wife and kid, your own piece of land is a wonderful thing, if you find the right one. The chances that you'll hate where you choose to live and your job are low. If you rent, you can't start making a HOME knowing that you are going to buy in another year.

I've never been happier-- because I now have a yard where my 5 and 2 year old can play, rooms I can decorate for them that are really THEIRS. Also, there's only a finite number of years that my kids will be living with me in the same house. I want to maximize those years in the best house possible, as long as I can afford it. You are there friend.

I know I'm very biased-- but really dig deep with your wife and decide what will make you happy. If the stress of possibly not liking your job and being stuck with a house are significant, don't buy. But if you are yearning to buy-- to truly lay down your roots-- go for it. Anyone with Yo Gabba in their name is a friend of mine, and hence I offer you my friendly advice.

 

[sevoflurane]

I've made it clear I'm with devil. With a wife and kid, your own piece of land is a wonderful thing, if you find the right one. The chances that you'll hate where you choose to live and your job are low. If you rent, you can't start making a HOME knowing that you are going to buy in another year.

I've never been happier-- because I now have a yard where my 5 and 2 year old can play, rooms I can decorate for them that are really THEIRS. Also, there's only a finite number of years that my kids will be living with me in the same house. I want to maximize those years in the best house possible, as long as I can afford it. You are there friend.

I know I'm very biased-- but really dig deep with your wife and decide what will make you happy. If the stress of possibly not liking your job and being stuck with a house are significant, don't buy. But if you are yearning to buy-- to truly lay down your roots-- go for it. Anyone with Yo Gabba in their name is a friend of mine, and hence I offer you my friendly advice.

yes, yes and yes...😍

I'd like to add one thing: Moving absolutely SUCKS! The boxes, the clutter, the empty house, the cleaning of the old house, renovations, etc, etc. It takes time, money and patience. I'd rather do it once in a 5-15 year period. 😀

 

[imfrankie]

First of all Yo Gabbapentin-- LOVE 😍 your screenname. Best kids show ever. I know I'm a freak.

Second-- if your family is there and you know the area-- I say buy. I will be an attending july 1. Just pounced on a 4 year old short sale home at the right time, bank approved our offer-- got it 400 grand under market, with an interest rate at 4.875. Dream house. So happy. But I'd been trolling the market here for six months before I made an offer on anything.

Another caveat is I've been in this area for eight years and plan to stay here a long time. If you plan to stay there a long time because your family is there, go for it. Do you have kids? If you do, even more reason to buy. Moving is a pain in the A$s. Why do it twice? If your employer is paying relocation, etc., all the more reason.

Other option is to rent, keep an eye out for your dream place, then jump on it and break your lease if necessary. I know the market could get worse and interest rates may not go up. But if you're trolling the homesearch sites and see stuff you like, the mortgage company will use your new salary-- interest rates are crazy low-- that's what dreams are made of.

My two cents. People will disagree. It's all good.
Good luck and congrats on the new job!!!

The only thing I respectfully disagree with is that you got it 400k under market. Market is market.

 

[Gern Blansten]

Market is market.

"A is A"

 

[Yo GabbaPentin]

I've made it clear I'm with devil. With a wife and kid, your own piece of land is a wonderful thing, if you find the right one. The chances that you'll hate where you choose to live and your job are low. If you rent, you can't start making a HOME knowing that you are going to buy in another year.

I've never been happier-- because I now have a yard where my 5 and 2 year old can play, rooms I can decorate for them that are really THEIRS. Also, there's only a finite number of years that my kids will be living with me in the same house. I want to maximize those years in the best house possible, as long as I can afford it. You are there friend.

I know I'm very biased-- but really dig deep with your wife and decide what will make you happy. If the stress of possibly not liking your job and being stuck with a house are significant, don't buy. But if you are yearning to buy-- to truly lay down your roots-- go for it. Anyone with Yo Gabba in their name is a friend of mine, and hence I offer you my friendly advice.

Glad that someone appreciates DJ Lance! If you really want a trip, go see the LIVE show! It's awesome.

We are definitely yearning to buy and I've been keeping my eye on the market for the past year. My parents and sibblings (who also live there) have also been keeping an eye on things. I know 100% that I like the area. The job seems great, but there are no certainties until I would actually start work of course. I'm willing to take a less than awesome job in order to end up in this area.

Ideally I'd love to take a couple of years to save up a down payment, but the several more years of misery waiting to be able to buy will just kill me. It sounds like I've made up my mind, but it will be a angel/devil battle for quite a while.

Thanks again to everyone for the recommendations.

 

[imfrankie]

"A is A"

"A" is "a" also.