Buying vs Renting
Tuesday Jul 05th, 2022
Dreaming of Homeownership?
Many of us dream of owning our own home but how do you know if it’s really right for you? Here are some things to consider when thinking about renting vs buying.
✔️Renting is cheaper than buying
When you rent a property all you need is first and last month’s rent. When you are buying you need a down payment, and the bigger the better.
Tenants don’t have to worry about property taxes, mortgage payments and the upkeep of the property. If there’s an issue you just call your landlord and they take care of it.
If you’re renting a condo you don’t have to worry about maintenance fees, they are the owners responsibility.
✔️Your money is more accessible
Although homeowners have the satisfaction of knowing that their investment will probably increase in value over time, their money is locked for the short term.
If you end up having to sell your home in the first few years after buying, you could lose money.
✔️Renting is less of a commitment
If you aren’t sure where you are going to settle or are in a new city, renting may be a better option before making a commitment to buying a property.
✔️Owning property is a sound investment
If you choose a home you can afford, the pay off can be great. With each mortgage payment you are building equity of your own. When you are renting you are just paying for a place to live.
➡️Equity is the difference between the value of your home and your outstanding mortgage. Assuming that the value of your home increases, then the longer you stay in your home, making mortgage payments, the more equity you are building.
✔️It’s the first step to home ownership
Your home helps you build equity and confidence as a homeowner. It could give you the ability to move to a better home in the future.
✔️It provides satisfaction & security
As the homeowner you can decorate and/or renovate your home exactly how you want. As a renter you may need to have approval from the landlord to make any changes.
There is the pride of homeownership and you often feel stronger ties to the community you live in.
Ultimately the decision of whether to rent or buy is a personal one. Financially renting may be your only option right now and that’s okay. You need to do what’s right for you, right now. If you choose a home you can afford the pay off can be great. Please feel free to give me a call if you want to talk about whether renting or buying is the right option for you.
This information should not be relied on as legal advice, financial advice, or a definitive statement of the law in any jurisdiction. For such advice, please consult your own legal counsel, financial representative, and/or insurance representative.
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