Let’s duke it out for one last time – Renting vs Owning
It is the debate as old as time and is as entangling as trying to do your own taxes: Is it better to be a renter or own your own home? There are so many sides to the story that everyone’s opinion seems to take over rather than the facts. Renting allows you freedom, freedom to relocate on a moments notice, come and go as you please, minimizes responsibility and can be cheaper. Owning a home is a rewarding experience, you fol-low no ones rules, are in charge of your domain, and have an asset that history has shown will grow in value.
Renting vs. owning has always been a hot topic for the followings reason, each displaying their own fair advice on why. Let’s explore.
I may have missed some here yet what a great start. I can see how the debate can be heated and both sides have a valued argument. Whenever I am approached by someone on the rental side of the fight, there is always one failed piece of information that is never considered. If owning a home is more expensive, more responsibility and more commitment, then why in the world do it? You want to own a home because after years and years of mortgage payments, the payments stop. Imagine 25 years of paying a touch more per month for a home you could easily rent for less… Now imagine year 26 when the payments STOP. What would you do with that money? What would you do with that money if you sold? Owning a home is a long term investment and a forced savings plan, renting is not. For the short period, renting is great yet in the end, you are still just making your payments while your landlord smiles and owns a home.
In the fight against renting versus owning, count this as the knock out punch for the victor, Owning wins again.
Do you know anyone that is currently renting? There are options out there for people with average jobs and income to make home ownership possible.
Blog post provided by Darin Germyn Personal Real Estate Corporation, a REALTOR® with Macdonald Realty in South Surrey / White Rock. Visit Darin’s blog at Germyn.ca
Are you ready to buy a home? Find out if it’s the right time for you to enter the real estate market.
If you’ve been considering buying a house but you’re still unsure, consider some of the personal and economic conditions that favour home purchases. If you find that a number of these signs ring true for you, it might be time to contact a real estate agent and start shopping.
1. You’re ready to commit
First and foremost, if you’re not ready to commit to owning a home, you should not buy a house. Home ownership comes with a plethora of responsibilities, including home maintenance, property taxes and the process of selling the property when it comes time to move.
Legal fees, moving expenses, and all of the incidental costs associated with buying a home can really add up. To make the most of these costs, it’s best to plan on living in your new home for a stretch of time. Consider whether you have a stable job that will provide a solid income for a mortgage, and if there’s any chance you’ll have to relocate in the near future. If you feel you can commit to sticking with a home for at least five years, then it might be just the right time for you to buy. If you’re typically a hardened commitment-phobe, remember that you can sell or rent your property if your situation changes dramatically.
2. Owning costs less than renting
If you’ve examined your budget and realized that your monthly payments associated with buying a home are less than you’re currently paying in rent, it’s time to consider a home purchase. Talk to your bank and look at what your mortgage payments would be for a variety of different properties and gauge what you can afford. Factor in any additional costs you may have to pay, such as condominium fees or extra utility bills, and compare your total costs to what you’re paying in rent. If it’s roughly the same or less, you could be saving money by purchasing a home — plus there’s the added benefit that you’ll be putting your monthly home expenditures toward your own home equity!
3. Buyer’s market
When demand for housing is low and there’s a wealth of properties on the market that aren’t moving too fast, that’s known as a buyer’s market. You’ll have a lot more bargaining power under these conditions than if you’re buying in a seller’s market, which is when demand for homes is high, resulting in few properties on the market that are selling fast. In a buyer’s market, chances are you’ll be able to negotiate a seller’s list price down — sometimes quite substantially — and save yourself a lot of money in the process.
Stay tuned for part 2 of this blog series Signs it is time to buy a house by Janet Fowler, Investopedia.com