Renting vs. buying a house the first year out of medical training?

Personal Finance and Budgeting

My husband will start his first physician job in a few months; here are the relevant details I can think of:

  • Take home salary: ~$350K initially
  • Practice buy-in: ~$300K in 3 years
  • Job is in the area where we want to settle down (near family) and we hope to stay with this job indefinitely… yes we know the stats about first job but we feel extremely confident about it and hope we are one and done
  • I stay home with the kids
  • $150K in student loans @ 6% interest (all in deferral until 2026)
  • $150K in family loans @ 3.25%
  • No other debts
  • We max out Roth IRAs and HSA
  • Will have about $100K in other savings when we start job (this includes signing bonus). Will also need to figure out what the best thing is to do with those savings.

If we rent for the first year, maybe two, homes in the area would be in the $2500/month range. We would try to buy within a year. To buy a home would be $400-600K depending on the neighborhood. Regardless, we’d probably aim to buy or build our forever home about 5 years after buying the first one. Thinking of possibly keeping the first house as a rental property, but depending on the market/our bandwidth at that point, could sell too.

Any advice? Are pros vs. cons in this situation basically a wash or is it advisable to go one route vs. the other? Any important factors we should take into consideration? Any tips on our very first next steps would be great too.

Posted Mar 8, 2025, 12:40 PM UTC

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