White Coat Investor Podcast

WCI #201: When to Rent vs Buy a Home

Mar 11, 2021
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ADVICE

When to Buy a Home

  • Buy a home only when your professional and personal life is stable to avoid financial complications.
  • Use a physician mortgage if you have better uses for your money, otherwise opt for a conventional mortgage with a bigger down payment.
ADVICE

Physician Mortgages Post-Pandemic

  • Physician mortgages allow low down payments without private mortgage insurance, but post-pandemic requirements may need more reserves.
  • Expect to put down 5% to 10% now, unlike before the pandemic when zero down was possible.
ADVICE

Why Residents Should Usually Rent

  • Residents generally should avoid buying houses, especially with unmarried partners, due to instability and legal complications.
  • Don’t compare mortgage payments directly to rent; buying also has hidden costs like taxes, maintenance, and fees.
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