Buying a home used to be a common milestone in any Canadian’s life. Properties tend to increase in value and they can be a great investment. However, in today’s world, prices have skyrocketed, and rules around getting a mortgage have gotten tighter. It’s now a lot more challenging to own a home. What’s more, working remotely and shifting to a global economy have made renting even more attractive for those who want to work from anywhere in the world. So if you’re thinking about renting vs buying, here’s what you need to know:
Consider renting if:
You Invest What you Save
Most people think buying a home is an attractive option for retirement. The goal is to purchase your home early enough to pay off your 25-year mortgage before the age of 65. Once you own the property, you can then sell it for a large sum and use that money to fund your retirement. Many people feel that renting is just throwing money away, but that’s not always the case! As a renter, you’ll likely have more liquid cash to sink into investments and retirement planning! So if you can invest what you save, renting might be a better option for you.
You have a Nomadic Lifestyle
A one year lease is much less of a commitment than a 20-year mortgage. If you love to travel extensively or move around for work, renting is often a better option. If you’d like to relocate, typically, you just need to give three months’ written notice to your landlord. However, if you own property, it can take much longer than that to sell. Leaving your house empty can be quite costly since you still need to pay property taxes, mortgage, and basic heating.
You’re Looking for Little to No Maintenance
The most attractive part of renting is that you’re not responsible for any issues with the building. If the dishwasher breaks or the basement floods, you don’t need to spend the money to fix it. You just need to call your landlord instead!
Consider Buying if:
You’re Committed to Staying in the Same Place for Five Years or Longer
Although it can take time for your home’s value to increase, homes usually do go up in value. Therefore, if you buy a home within your budget, you can typically expect a nice payoff down the line. A good rule of thumb is to hold onto your property for five years or longer to benefit from your home’s appreciation.
You Want to Build Equity
Every time you make a mortgage payment, you’re building equity. That means each monthly payment takes you one step closer to owning your place, which is something you simply can’t accomplish by renting. What’s more, you can leverage your home equity as collateral to secure a home equity loan or a home equity line of credit. This can help you with significant renovations or paying for your children’s education.
You’re Ready for the Responsibilities of Being a Homeowner
Owning a home comes with many advantages, like helping you save for retirement and building equity. However, you need to be ready for homeownership responsibilities, including paying property taxes, trash pickup, water and sewer service, and repairs and maintenance.
A real estate professional can help you decide what’s best for you and help you find your dream home, whether you rent or buy! If you’re looking for an experienced and reliable real estate professional, you need to contact Giancarlo and his team today! Giancarlo has worked with various people who were looking to rent and buy, so he’s equipped to help you make the best decision based on your unique situation. No matter what you decide, Giancarlo and his team will help you find a property that fits your needs. So contact Giancarlo today at 438-364-0904 or info@carangelomgmnt.com.