March 17th or “Match Day” is coming upon us quickly with medical students anxiously waiting to see where they will spend the next few years. After you hear about your “match” several obstacles present themselves one of which being where you will live. For the past few years buying a home versus renting throughout residency was a difficult one. Now that the market is picking up and there is a healthy demand for property around medical schools, buying is an extremely rational option. Between Duke in Durham and UNC in Chapel Hill there are several fantastic options for residents searching for an investment opportunity. Consult our guide to the benefits of buying below:
The triangle of Chapel-Hill, Raleigh and Durham creates an expansive metro area of housing for students and professionals alike. The area is in high demand for medical and tech jobs creating a dependable re-sale opportunity down the road. If you choose to buy a condo, townhome, apartment or home in close proximity to campus then your chances rise even higher in the demand of your property. The well established medical schools in the area always have residents moving in and out of the city annually, creating a constant demand and flow of buyers for when you choose to sell.
Begin to Invest Early
Real estate investments have not had the best press in the past few years due to the recession. However, they are becoming a great venue for early investing in your 20s again. Your residency is finite, but the investment of a property in a high demand area is not. Depending upon your ability to pay a down payment, buying your home or condo instead of funneling thousands of dollars to rent over the years is a great option. In order to gain a basic understanding of whether or not you will benefit in a short amount of time consult this quick tool here.
Potential Rental Income
After four years of undergrad and then four years of medical school you have potentially lived with a roommate for eight years. Roommates are great ways to live in high demand areas without high demand prices and this can be directly applied to home purchases. Searching for a two or three bedroom property will allow for one or two extra rent checks going straight towards your mortgage. This is a viable way to reduce your monthly costs or even to sublet if you spend any extended time away.
Between low interest rates and prices still remaining on the lower side, buying is a rational investment in medical school or any other situation for that matter. We are in an in between period in the market in which the market is beginning to get back into the swing of things, but prices and interest rates are still remaining on the lower side. No matter the demand in other areas, well established hospitals and medical schools are not going anywhere any time soon. In turn, your property in close proximity to the campus will be in high demand in this market and most markets moving forward. What is different right now is interest rates and prices are on your side.
Making the most of your money in medical school is extremely important. There are innumerable costs incurred throughout your residency and immediately afterwards, but you have a chance to decrease those costs drastically. Through investing and building equity you will avoid waving goodbye to a monthly rent check. If you buy with the needs of future buyers in mind (proximity to school, convenient parking, etc.), this investment will keep giving for years to come. For more information or advice about buying over renting before you begin your residency, please contact us for more information.