ADVICE ON BUYING A HOME FOR THOSE ON THE CAREER FAST-TRACK

The bank executive was close to tears when he phoned his real estate agent.

Just eight months ago, he settled into a striking Spanish-style home built in 1939. Already he's invested $20,000 in the vintage property, adding central air conditioning and redoing the floors.

He loves the house, so why the melancholy? Because recently his bank merged with another. The takeover left him with two options: quit his current job or take a promotion requiring three hours of daily commuting time.

The promotion shows the bank officer to be on the career fast-track. The offer carries a big salary increase, making it hard to resist. But the commute makes the man so miserable he doesn't know what to do with the house.

He could sell now and perhaps break even at the bottom line, given the appeal of the property and appreciation in his neighborhood, says Jean Halderman of Coldwell Banker, the broker-associate who represented the bank executive in the purchase.

On the other hand, he could rent out the Spanish-style house, though finding someone willing to pay the rent required to cover his monthly mortgage and maintenance costs could be challenging, Halderman says. The home is an expensive one, and most people who are able to pay high rents would rather buy.

The bank executive's plans are still unresolved. Uncertain how long he can accept his arduous commute, he continues to debate his alternatives.

The rapid restructuring of the U.S. economy during the last decade has caused more Americans to move to new jobs frequently, either willingly or unwillingly. That, in turn, has made decisions on home ownership more challenging, says Kenneth J. Goyeau, a Re/Max real estate agent.

The bank executive and others like him who face unexpected transfers can do little to avoid this sort of situation, and those who anticipate rapid career changes should be careful, says Goyeau.

"Look toward the future, but be cautious," Goyeau advises those who tend to move often. Here are four pointers for home buyers prone to frequent job changes:

No. 1: Be circumspect on a home buy if you're a young, rising star.

"Many young people are still on a career path into their early 30s," says Goyeau, noting that those working in cutting-edge technology fields are especially likely to make leapfrog career moves these days.

He tells of one client, a 33-year-old software engineer who came from China a decade ago to gain his college degree. Shortly after graduating, he discovered his skills were in high demand in the United States. No sooner would he start one job but another employer would hoist his salary and benefits with a better offer.

Of course, numerous prized recruits gain relocation benefits from their new employers, particularly if they must move from state to state. These can soften the financial impact of selling one home shortly after buying it.

But those who accept a job in a distant part of the same metropolitan area probably won't be compensated for the transaction costs involved in selling one home and buying another.

While many professionals make job shifts between their late 30s and late 50s, the chances are even greater for the younger set. That's why younger people need to show special caution in committing to a home purchase without certainty about the direction of their careers.

No. 2: Take on the mentality of a would-be seller when you buy.

Those who deliberately job-hop or are prone to transfers should, so to speak, always have a suitcase packed.

"You need a house that can be resold quickly," Goyeau says. "You don't want it to be near a waste dump or to back up to a freeway."

Someone who anticipates moving again within three years might even be better off renting than buying, unless they're purchasing in an area of extremely rapid appreciation, says Halderman, the Coldwell Banker broker-associate.

No. 3: Consider buying a home that could be readily converted to a rental.

Some people rule out the idea of renting, preferring the liberties (and mortgage-interest tax deductions) that come with living in an owner-occupied property. This is true even if they anticipate moving within a short period of time due to a job change.

These individuals could well consider purchasing a property that would convert readily to a rental unit. Rental homes are in particularly acute demand in middle-income areas where there are few available homes on the market.

Are you expecting to live in the home you purchase for just a few years before converting it to a rental unit? Then Halderman says it's better to buy a house that's not in the top 30 percent of the local price range.

It's easier to achieve a positive cash flow on a middle-income unit rather than one with a huge mortgage payment, Halderman says. A single-family home (instead of one that's detached, or a condo-apartment) often makes an excellent rental unit, she says.

If you don't like the idea of managing your rental property personally, you can hire property managers or others to do so.

No. 4: Consider job changes relative to real estate as well as the reverse. Obviously, decisions about job shifts and home moves are closely intertwined. Goyeau, the Re/Max agent, thinks no one should make snap judgments about career moves without considering the entire lifestyle picture.

The problem, as Goyeau sees it, is that some very alluring and well-paid jobs may not have the durability to ensure a steady income stream into the future. This could be especially true in certain sectors of the fast-paced technology field, he says.

"Whatever comes fast can also go fast," he says.

If the cycle in your particular occupational specialty turns down and you must change jobs quickly, the need to sell or rent a high-priced house could come as a burden.

As the father of four children, ages 11 to 42, Goyeau is not adverse to providing career advice to his offspring or others. When it comes to tempting job offers, he says, "all that glitters is not gold."