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House Hunters, Academic Style

July 12, 2011, 9:46 am

By Gene C. Fant Jr.

For a recent Ph.D. who has never owned a house, the first full-time job brings a very pointed temptation: the purchase of a house. Most new faculty do not have houses to sell in their doctoral town, and the itch to get out of apartment living is too much for many folks to put up with for much longer. Add to this the current buyers’ market and low interest rates in many locales and the hunt is on pretty early in the year, or even over the summer.

I have to wonder, though, how wise a house purchase is for a brand new hire. Financial considerations aside, there are other practical factors to ponder:

1. Will you know the area well enough to choose wisely (the realtor’s motto is, of course, “Location, location, location!”) considering schools, amenities, and even potential resale value?

2. Will you know what kind of house to buy after living in an apartment for so long? Floor plans can be very deceptive, and life as a professor genuinely does differ from that of graduate-school serfdom. Do you plan to entertain groups of students? Will you work primarily from an office on campus or at home? Do you want to live near campus or lots of other university employees (and be “on” all the time) or as far away as possible (and have more privacy)?

3. Do you really have the time to work on a house? That historic property with its beautiful creaky floors and high ceilings can suck up all of the time that might otherwise be spent writing and working on classroom materials.

4. Will you really like the institution/department after the first year’s service? Relocating with a house to sell is a very steep challenge.

I always recommend that new faculty rent for a year if at all possible. I cannot tell you how many friends I’ve had who ended up changing institutions after a year or two but then had a house to sell that turned into a millstone around their financial necks; likewise, the friends who made changes without having a house to dispose of also are unanimous in the wisdom of waiting.

What advice do you have for folks who are considering buying their first house after landing that first academic appointment?

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  • bigtwin

    Certainly seems like a good time to buy in the states, as tough as times are.  Up here in Canada, we’re still near the peak of our housing bubble.

  • 22108469

    Here’s another tip (offered with a bit of sarcasm): don’t buy a house unless you have a partner to take care of it and the yard.

  • 11196496

    So you want to buy a house because you got the job and can’t stand living in an apartment any more. Might it not be prudent to wait and see if you like the place and if they like you. Having to search for a new job and sell a house in which you have little equity all at the same time makes for a demanding situation. Such a heavy workload will not contribute to being able to write and publish book #2 and get a better job elsewhere.

  • djr46074

    I bought farmland (no buildings) shortly before starting as an tenure-track assistant professor, but didn’t buy a home (in a subdivision) until two years later.  Sold the farmland and home shortly after earning tenure, then bought more farmland (no buildings) and had a custom home built on that land. Now that corn and beans are at record prices, I wish I still owned that first farm.  My advice is to consider your options and risks carefully, then act decisively.  By the way, I find working in my yard and on my house to be a nice break from my academic responsibilities.

  • nyhist

    I didn’t buy a house until I got tenure. Put up with an apartment till then, and then I knew the town & where I wanted to live. I think it was the right decision. Most of my younger colleagues these days are renting for at least a year, house or apt. before buying. Also a good decision.

  • hypatia

    The one piece of advice I’d give, and I’m surprised no one has mentioned it, is to take a few years and save for a down payment before buying a house.  It’s always wise to put down as much money as you can manage, thus lowering your mortgage payments.  Coming out of grad school or a series of postdocs or limited-term appointments, new appointees are unlikely to have accumulated much of a savings account in the beginning.  It’s also good discipline, when you get that first job (which may well pay more than you ever learned in your previous positions), to learn how to save.

  • tromba61

    Having moved from the Northeast to the Midwest for my spouse’s job six years ago, we were happy to see such cheap housing. Sadly we bought near the top of the bubble, but worse than that, we had no idea that the town was too conservative and religious for us. Had we rented for a while, we would have found a more progressive area not far away.

  • vkw10

    Wait at least a year. In addition to saving for down payment during that year, save for  lawnmower, new curtains, and bulbs for the flowerbed by the porch of your new house. Entertain yourselves by exploring residential neighborhoods — drive through them early in the morning, late afternoons, just before bedtime, on weekends, around holidays. Do people walk, push swings, skateboard, chat with others, pick up beer cans from gutter on Saturday morning? Do they hire lawn services, garden, decorate all out for holidays? Which neighborhoods are mainly young families, childless couples, retirees, mixed ages? Once you’ve found a few neighborhoods that feel right to you, do a few practice commutes at the times you’d normally drive to campus or drive home. Check out the local schools, groceries, dry cleaner, branch library. When you finally buy, you’ll end up in a neighborhood that feels comfortable and you’ll have a bit of cash set aside for the wind chimes that you’ve always wanted.

  • totoro

    I think this is good advice. Though buying a house does seem like a good financial choice in many parts of the US now, another year or so won’t make a big difference. Just the hassle of moving house again… But here in Australia it is another story. Now finally we might be able to afford to buy here but we’re still not sure it is a good idea given the extremely high prices. I’m 46 (wife 36) and just got promoted to full prof, never owned a house/apartment. We live in an apartment.

  • mbelvadi

    According to Dean Baker of CEPR, one of the few US economists who spoke out in warning about the housing bubble well before it burst, the US housing market generally is still significantly overpriced – the bubble is still deflating despite Congress’ futile attempts to stop it with subsidies that have expired. This varies based on area, but my advice would be to research carefully the historical and current market prices for your area first. Just because the prices have already dropped a lot doesn’t mean they won’t continue to drop, and the last thing you want is an “underwater” mortgage. Remember that adage about not catching a falling knife?

  • l1m1nal1ty

    does that tip count if said partner is also occupied with scholarly work?

  • SHAW2011

    I agree with waiting for at least a year before purchasing a home.  Moreover, it is usually best to have tenure before embarking on a house purchase.

  • microbio

    One thing that hasn’t been mentioned to this point: many schools provide a significant financial incentive to buy right away.  Some will provide loan funds, moving expenses, or other incentives–it might be foolish to give these up.

    Of course, in today’s climate, it might not be such an issue…..

  • Guest

    I’m a right-wing evangelical pro-life Army reservist stuck in the ultra-gay, environmentally unbearable, abortionista, People’s Communist Republic of Los Angeles. Also known as Barackwood. Want to swap? My apartment is a tidy 2-BR within walking distance of Vivid Video, four marijuana dispensaries, and a government-funded outreach office of Code Pink. And you won’t see a Sarah Palin bumper sticker for miles and miles. Or a cross.

  • minnesotan

    Do what my folks did: have children for the purpose of getting chores done. ;)

  • minnesotan

    No preachy people? I’ll trade!

  • jaybro

    I thought this article was interesting as I am a doctoral student who owns a home. Where I am is a buyer’s market and when I bought my house 3 years ago my mortgage was cheaper than renting an apartment around the corner. Plus, with school I figured I’d be here for 4-6 years so why not have something to show for it? My house is newer so not that much maintenance. Like djr46074, I find housework a pleasant break from reading and writing. 

    I agree with the advice here to wait before buying a house after relocating.

  • awegweiser

    I would seriously consider a swap with Lopez. He probably would delight in your part of the Midwest, assuming even it was extreme right enough.
     I doubt I could stand living in the neighborhood he describes in such lurid detail. I would certainly not miss seeing Palin or faded Bush stickers. Crosses on churches are fine or tattooed under your shirt.  I do not feel the urge to advertise my faith all over my vehicle or preach fire and brimstone to those who doubt there is an all powerful, invisible being in the sky.  And, likewise not advertise a warped position toward gays, women, non-Christians. 

  • auriville
  • auriville
  • laker

    In fairness to the Governor…1971 was a LONG time ago…how can he be expected to remember that!
    (sarcasm off)

  • arrive2__net

    The Canadian professor probably thought it was just some kind of new scam…like … send us your bank account number and you’ll receive a job in the Italian government!! 

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