Does it make sense for us to buy or shall we rent?  Let’s discuss the advantages of each.

Purchasing a home can give one a sense of accomplishment in ownership and you can decorate, paint, and modify it to your taste and liking and when you pay your mortgage commitments you are building equity in the home.  What is equity?  Equity is the difference between the value of your home in today’s market minus the amount that is owing to a lender.

With home ownership come the responsibilities of paying for mortgages, taxes, insurance, repairs and maintenance.  Depending on the home you buy, will dictate how much money you may have to put into it for repairs and maintenance. Buying a new  home or newly renovated home may cost you more upfront, but long term may be a better option if you are not keen on doing your own renovations or do not have the time for them.   If you are handy and enjoy working on house projects, then maybe buying the fixer upper is for you.

When you purchase a home, you most likely will need a mortgage. Take the time to get a pre approval done by a mortgage professional before you go out to buy a house.  A pre approval helps to discern what you can afford allowing you to shop with confidence.

Renting a home, is where you may have the responsibilities of cutting the grass and keeping the place neat and tidy but when it comes to repairs and maintenance that is typically the job of the landlord.  You are living in a place where you pay the rent, maybe a portion of the utilities but that is about it for financial responsibilities.  It is a good way to go if you really have no desire to put any time or money into a place and you like that you can move around after the lease is up without going through the buying & selling routine.  It is a life style choice here.

It could also be a financial choice.  If you are uncertain if you are going to be living in a place for more than a year or two consider the costs involved in selling a home and buying a home and the fact that the  market may not be in your favour when you need to sell.  It is never fun selling a place for less than you purchased it for.

In review:

Homeownership provides opportunity to build equity in real estate and call a place your own.  You are responsible for all the maintenance, upkeep and all the bills.  It is usually one of the biggest investments you will make.

Renting allows flexibility, leaving you only responsible for keeping it neat, paying the rent and possibly a portion of utilities.  It is often a life style choice where you do not want to spend time or money on a place for yourself.  It can be a financial decision if you are unsure of your time commitment to living in the same place.

If you like to review if home ownership is an option for you feel free to email me at marg.dominionlending@gmail.com or visit my website at www.margdeboer.com