Whether you’ve bagged yourself your dream job or you’ve made the grade with a graduate scheme career, you may now be facing the prospect of relocation. Leaving the confines of a university campus or student accommodation is a big step into the real world and you may be wondering whether you should rent or buy.
But before you make that important first step, there are a few things you should consider.
What are your priorities with your first graduate job?
If you’re starting a new job, there are a few things you should think about that will help you decide whether you should rent or buy.
- What type of job contract is it? Is this a job that will be the start of a long-term career that you can see yourself in for several years or is this a fixed-term contract that will mean you need to move on? Equally, is there an office situated nationally or globally that you might transfer to?
- What’s the area like? You may find that the area you’ve chosen isn’t that great and can’t see yourself living there long-term.
- What are the long-term company plans? Find out what the long-term plans are for the company. Talk to people and look up past employee reviews as well as filed accounts on Companies House to make sure they’re not having financial trouble that could cause your job to be compromised.
Renting v Buying
Whilst there are a number of benefits for both, there are definitely some things you should consider before signing on the dotted line. Despite some banks launching their cheapest five-year fixed rate mortgage on record, if you’re a graduate about to start your first proper job, it might be prudent to wait a few more years.
Whilst owning property does give you a chance to build equity rather than throwing your money away paying someone else’s mortgage, in this instance renting might be the better option.
When you rent a home, you can often sign up for a one year lease. This gives you the options to explore the area you’re now living in and evaluate whether you can see yourself in the position for the next few years.
If you’ve moved to a new city for a job and end up hating it there and decided to buy, you could end up with a property you’re unable to sell or you’re stuck on the market for longer than you anticipated.
Owning a property comes with a lot of responsibility, whereas if something goes wrong in your rental the landlord will fix it. Of course, if you do decide to rent, you should ensure you have tenants insurance to give you that peace of mind.