New Job, moving, relocation benefit provides no buying closing costs, Can/Should I buy a condo over renting? : personalfinance

New Job relocation benefit covers closing costs, Can/Should I buy a condo over renting? (Seattle, WA) : RealEstate

In August I’ll be moving to Seattle, Washington for my first job out of college. My current rental lease ends at the end of July. (dont currently live in WA)

I’m 23, Software Engineer, 740 credit score, no debts. $21,000 in total (savings & everyday money, all liquid)

New job is $113k gross (8.6k/mo), Net $71.5K ($5.5k/mo), 10k signing bonus.

What I’m considering for renting:

What I’m considering for buying a house:

The Situation:

As part of my relocation benefits, the new company is willing to pay “customary, non-recurring, buyer-paid closing costs” including but not limited to: inspections, appraisals, credit reports, real estate agent services (buying) and potentially others.

There are other reimbursable services that are available to me (w/ gross-up for taxes) such as a furniture shipping and 2-week temporary housing that I expect to be around ~$7000 paid back in my first month of working.

I have no estimate how long I’d live in Seattle but I’m going off a 4 year estimate in calculators to get all stock benefits from the company.

If I bought a condo my intention would be to keep it and only rent it out if I have to move elsewhere.

I’ve run through:

After down payment and before reimbursable relocation expenses, I could potentially be starting in seattle with $21k starting minus $1k living & rent for july minus $16.5k non reimburse expenses minus ~$6k reimburse expenses = **~ $-2k to my name by the time I hit Seattle at the beginning of august**

Using 2 – $2k credit cards that could be used for holding expenses (such as the reimburse benefits & non-housing related incidentals) for a month+ will stop me from being actually negative.

Read about:   Mortgage Servicing jobs in the USA

The Rules-of-thumb, unknowns, and observations I’m aware of:

  • I might hate living in Seattle/ hate my new workplace

  • “renting cost is the max I’ll pay, buying is the minimum I’ll pay”

  • My parents have told me, before I have the keys, could range from 30-90 days after starting the buying process so I will incur temporary hotel costs beyond what’s reimbursable (looks like $2900/month for extended stay hotel – $1300 for first 2 weeks covered by relocation.)

  • The first paycheck is is expected to be around ~$10k after taxes before relocation reimbursements. potentially ~$13k with the reimbursements if tax calculations are correct. rough guess for w/ reimbursements. So the bounce-back from first paycheck leaves me better than broke but feels like im betting on future income. (which is a no-no)

  • Having very little to my name before first paycheck would leave me extremely “house poor” (recent college grad, no furniture to my name).

As I was writing this out, the last observation above has me leaning towards the idea I’m not ready to buy a condo despite current world timings and the relocation help from the company.

I really want to ask the community is there any intricacies that I’m overlooking which drives that I cannot buy a condo and should proceed renting for the foreseeable future and ignore the closing cost benefit, or the opposite situation.

Thanks for reading my story.