Experts in personal finance don’t agree on the subject of renting vs buying your home.
Some say that renting for as long as possible is a good idea, because you avoid losing money when your home’s value goes down.
On the other hand, others argue that if you’re renting an apartment or house, all you are doing is flushing your money down the drain every month. The landlord is getting all your money, and you aren’t building up equity in a permanent investment of your own.
As well, your landlord could suddenly sell your apartment right out from under you, at any time, putting you in an unpredictable situation.
That said, buying a home is a serious long term investment. Historically, homes have increased in value in the long run. Just because you may have negative equity for a while during a local real estate slump, that doesn’t mean that your investment isn’t sound. It just means you need to wait it out for longer before you sell. If you weren’t planning on selling in the near future anyway, these fluctuations don’t really affect you.
When making the decision between renting and buying, always consider the risks. Some mortgages “carry” like rent, so for a small amount more each month, you can be paying down an asset you will one day own outright. However, if your rent is low, you’re left with more disposable income, perhaps to invest elsewhere.
When trying to decide between renting and buying, you have to consider more than just your money – although it’s pretty easy to make the argument that buying a home is a sound financial decision. Owning a home is the ultimate dream of people from almost every culture. It becomes a point of pride.
Be sure to weigh all the pros and cons of buying vs renting in the Ontario, Canada real estate market before you make your decision.
And remember…
When you buy or sell your home with one of our Certified Sears Real Estate Agents, you get back 0.6% of your home’s value in FREE Sears Gift Cards!
For instance, if you buy or sell a $250,000 home, you would get $1500 back in Sears Gift Cards.
You could even use your Sears Gift Cards to pay for Sears Installed Home Improvement services: bathroom and kitchen renovations, carpet installation or cleaning, roofing, replacement windows and much more.
Between government rebates and tax credits, and the deal you get using Certified Sears Real Estate Agents, becoming a first time home buyer is now more affordable than ever!
CLICK HERE to learn how to buy and sell your home with one of our Certified Sears Real Estate Agents and get back 0.6% in FREE Sears Gifts Cards.
