Should I buy or rent a home? It’s a question many people are asking, as they evaluate the Canadian housing market, the economy, and their future. Those who take the rental route often wonder if they’re wasting money. Meanwhile, those who buy may wonder whether or not their investment will be worth it in the long run.
Though it’s clear that home ownership offers many benefits, the decision to buy or rent is a personal one that should be based on several factors.
What is the price of real estate in your market?
It’s important to understand how local factors may affect prices before you decide between buying or renting. Under the right market conditions, buying real estate can be a lucrative move. On the flip side, if there’s uncertainly ahead or if market conditions aren’t in your favour, renting could be a better option until the stars align and the right time to buy rolls around.
How are things at work?
Do you feel stable in your job? Are you growing in your role? Where do you see yourself in five years? If your financial future looks rosy, home ownership is a great option to start building equity and planting roots in your community.
What’s your life stage and lifestyle?
Are you single? A couple? A growing family, or perhaps an empty-nester? Home ownership can provide a stable living environment without some of the uncertainties that are often associated with renting. Your home, your castle. Alternately, a rental home will appeal to those who don’t want to carry the cost or the commitment of home ownership.
Where are you financially?
Do you have enough money saved up to cover a down payment? The minimum down payment is five per cent, but anything less that 20 per cent will require you to purchase mortgage loan insurance.
Your monthly mortgage payment creates equity for you, not your landlord. Owning a home can provide a sense of stability and control that you don’t often get from renting. There is a great feeling about coming home to a place that you own.
Think you’re ready to buy a home? A RE/MAX agent is there to help you shop, negotiate and eventually, own. Contact one today.
