Match Day is quickly sneaking up on us and with the anticipation of being “matched” also comes the endless decisions in order to prepare for residency. One such decision is where to live, and in turn whether you should rent or buy during your residency. In the current market buying is a viable option due to dependability of demand in the downtown area among many other reasons. Ann Arbor is often rated as one of the best places to live in the country and as a result, owning property here, especially in the heart of the city, is a fantastic investment. Check out our reasoning below in order to properly consider your option to buy after Match Day on March 21st.
Build Equity Early
If you have the funds for a healthy down payment, then buying should definitely be on your radar. Over the four to five years you spend in residency you can begin to build equity with your investment. Instead of paying monthly rent, your money could be going towards a profitable condo in downtown Ann Arbor. A good tool to use in order to get a basic understanding of the money you would save can be found here.
If you do intend to buy, consider a two bedroom. This way if you want to sublet during potential time away or rent to a roommate this is an excellent way to contribute to a monthly mortgage payment. In most cases your monthly costs are drastically lowered through living with a roommate and this only puts you ahead in terms of building equity towards your property.
With interest rates still low and prices only beginning to rise, buying now, whether in med school or not, is a wise decision. Since this is an in-demand area due to the college and popular downtown area, a well-maintained condo or home is a viable option for investment. There is also a tax benefit for mortgage deductions which is another plus to this option. Whether the market is up or down at the end of your time in Ann Arbor, properties appealing to medical students will remain this way since there is a constant demand for housing near the school and hospital.
The years you spend in residency paying money towards the mortgage will pay off when you can continue to either rent or sell your property at the end of your time in Ann Arbor. When your residency comes to an end or you decide to leave Ann Arbor the demand for property close to the college and hospital will still be in demand. Properties such as one to two bedroom condos in close proximity to the medical facilities in particular are popular.
Since you will be spending the majority of your time in class or at the hospital, making the most of your money is extremely important. Why put a large chunk of money towards a rental every month with no return when you can invest your money? Through buying a property during residency you get a return on the money spent throughout your time in school through re-sale or rental income after the fact. For more information or tips to buying in a short amount of time, contact us for more information.