More Affordable: Renting or Buying a Home?

by Century 21 Future Realty

Introduction

Whether you are about to leave your parents' home or have already been living on your own for quite some time, if you do not currently own your own property, making the decision to buy or rent your next home is important to consider.

In this presentation, you will see the pros and cons of both options. You can then determine which one works best for you.

First Time?

Your priorities are likely different if you have previously lived on your own or are currently living on your own. However, if this is the first time you are going to be living on your own, it might be better to rent since your profile is likely that of a young man or woman who has just entered the labor market. This means that, not only will you have a lot to think about, but you won’t want to overcomplicate your life with the paperwork and worry associated with buying a piece of property.

This leads us to our second consideration: your budget.

Your Budget

Of all the things to take into consideration, your budget is the single most important factor to affect your decision to either buy or rent a home. If you have enough financial stamina, and can afford to buy a home, you can start building your assets. By investing in real estate, you will have financial freedom in ways that you might not if you rent.

Your Budget

On the contrary, if you are short on cash, you might want to save some money by renting first. Not only will that option allow you to pay smaller monthly amounts, you will not have to incur other fees attached to purchasing property (e.g. property tax, utilities, etc.).

Renting will also allow you to put money aside. That way, when you are finally in a position to purchase property, you will have the funds to make a down payment. By placing a large down payment on a piece of property, you will be able to secure a good interest rate on your mortgage.

Alone or in Couple?

Another factor to consider is whether you will move in with a partner/spouse. For obvious reasons, it is much easier for you to afford a purchase if you have two salaries rather than one. However, the stability and level of commitment between you and your partner should also be taken into consideration.

Alone or in Couple?

For how long have you and another individual been a couple? Is this the first time that you two will live under the same roof? According to recent studies, after 5 years of living together, about 80% of couples end up parting ways. This bears huge implications for you when you consider the cost and energy associated with buying a house.

If you are only just moving in together, it might be a good idea to rent at first to see how it goes before taking the plunge.

Your Location

To rent or to buy also depends on where you would like to live. The real estate market is so cheap in some parts of the country that it would make more sense for you to purchase in those areas.

In the same vein, if you happen to live in a metropolis such as Vancouver or New York City, forget about ever becoming an owner unless you leave the center for the outskirts.

Also, don't lose sight of the fact that some locations have no land to erect new buildings. If you choose to buy property in such locations, you might have to go for old properties that are overpriced.

Conclusion

So, what's the better and more affordable option: to buy or to rent? As you know by now, the answer to that question will depend on your personal circumstances as well as your risk tolerance.

However, to make sure that you always strike the best deal (whether buying or renting), you will want to see your local real estate expert for advice.

Would you like to learn more? Contact your Real Estate Agent at this address: http://www.century21.ca/futurerealty