Renting or Buying – Which is Better?
One thing we as Realtors can always agree on is that the market is fairly unpredictable. It can change at the drop of a hat, interest rates are a constant thing and as responsible Realtors, we want to make sure that you can actually afford the home you are looking for… which is why we think knowing the differences between renting and owning is really important.
The first major thing to know about owning a home is getting that first 20% down payment. You need to have that amount to secure a mortgage from your respected mortgage broker. Which, if you are like so many people, that is a boatload of money to save and not everyone is able to have a lump sum gifted to them. In that case, people keep renting and in the province of British Columbia housing costs are quite expensive, which makes it very tough to save that kind of money. Our suggestion? If you want to buy a home, talk to a financial advisor. Someone who can help you determine how to put some $$ away for the next year.
When it comes to renting a place, it is a lot easier on the pocketbook in immediate ways. You aren’t responsible (for the most part) for fixing the washer/dryer, the roof, or any other major items within the home. Unless you purposely caused an issue, the owner is mostly responsible. You can walk away and take a vacation and not worry about anything.
Renting also allows you to move from place to place when you want (after your lease is up). So if you are a downtown living type person, it might be the freedom you need to stay in the ‘top’ neighbourhoods.
So why wouldn’t you rent? Simply put, owning a home is a good nest egg and investment. Even as the economy fluctuates, real estate will always give you a good return. For some, it is retirement, for others, it is investment properties where other people rent from you. Either way, you will have that money when you need it. If you are willing to sacrifice a few financial wants when you first buy a home, it certainly does pay off later in life.
The debate will never be a cut and dry winner of buy vs. rent. It all depends where you are in your life, settled down or looking to create investments vs. wanting to move around a bit. Either is a respectable choice, but take the time to decide.
If you have questions about renting, where to rent, buying or where to buy … give us a call.