It’s a question that most Canadians will ask themselves at one point or another in their lifetime. Those who choose to rent often wonder if they’re wasting money or are tired of paying their landlords mortgage. Those who buy may wonder whether or not their investment will be worth it in the long run.
Though it’s clear home ownership offers many benefits, the decision to buy or rent is a personal choice that should be based on several factors.
Factors to consider
1) Market Conditions – What is the price of real estate in your local market? Take time to research what is happening with the home prices in your neighbourhood over the last six months to a year and also what is predicted to happen in the near future. It is important to understand the market conditions and how they may affect prices before you decide to buy or rent.
2) Financial Stability – Do you have a stable job and roots within your community? How is your credit score? Do you have enough money to pay closing costs? If your plan is to continue living in your community for the foreseeable future, home ownership may be the best option for you.
3) Lifestyle – What stage of life are you in? Do you prefer the flexibility that comes renting? If you have a family, home ownership can provide a stable living situation without some of the uncertainties that are associated with renting.
4) Down Payment – Do you have enough money saved up for an adequate down payment? While you can purchase a home with a minimum of 5% down, some home buyers prefer to wait until they have a 20% downpayment to avoid paying CMHC fees and have a lower monthly mortgage payment.
Benefits of Home Ownership
1) Financial Investment – Your monthly mortgage payment creates equity for you, not your landlord. Over the last 50 years in the Ottawa market, home prices doubled on average every 10 years. Paying $375k for that condo? It will very likely be worth double that in the next 10 years. You can also utilize that equity in the future to possibly purchase more real estate or go on that bucket list trip!
2) Stability – Owning a home can provide a sense of stability and control that you don’t often get from renting. There is a great feeling about coming home to a place that you own. When renting you will face rent increases and possibly be forced to move due to a sale. Owning your home allows you to establish roots in your community!
3) Personalization – When you own your own home, there’s no need to get approval before you paint a wall or hang a piece of art. You can choose what minor and major renovations you make to the place you live in.
If you are still unsure of what decision is best for you, feel free to reach out to RE/MAX Hallmark Pilon Group Realty. We would be happy to set you up with a free consultation with one of our Buyer’s Specialists who can go through the process and help you decide what decision is best for your particular situation.
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