Rent a home, or buy one?
That’s a question many people ask at some point in their adult lives, and there’s no definitive answer because everybody’s situation is different. It usually begins with finances, yet there are other considerations, too.
Buyers have often been renters before entering the real estate market. As renters, they have enjoyed the benefits that come with it, such as not having to be responsible for the cost of upkeep and other maintenance issues, not being concerned about a decrease in the property’s value and being able to make a short-term commitment until finding out if that’s the ideal area for them.
When they become buyers, they get to enjoy the benefits of home ownership, such as having the peace of mind that comes with that stability and control, having a foothold in the real estate market for when it goes up and having the opportunity to generate rental income if they have a suite.
When they become buyers, they get to enjoy the benefits of home ownership, such as having the peace of mind that comes with that stability and control, having a foothold in the real estate market for when it goes up and having the opportunity to generate rental income if they have a suite.
The first question a renter will want answered before taking the ownership step is: What can they afford? There’s a number of apps available to help calculate mortgage costs to get to the point of making that commitment, so that’s a good place to start. It’s also best to check credit scores, savings that can be used for a down payment and if it appears to be a good time to get into a market that rises and falls.
There are statistics that estimate Canadians spend 30 per cent or more of their gross incomes on rent. Applying that ratio, with a down payment, to home ownership and it’s clear why a reported 40 per cent of Canadians under the age of 35 (and 70 per cent of all Canadian adults) are homeowners.
Educated and personal help is always available, by calling Jennifer (604-720-3353) or Dale (604-726-8768).