Top four things to consider before you decide whether to rent or buy your home

Making the decision to buy or rent your home can be a tough one, since the choice is based on several factors such as your budget, your job, your lifestyle, your financial obligations and your future plans. Home ownership is highly attractive, with first home buyers’ tax incentives that save you money, while renting can be a flexible option that lets you look for the right property to buy. Here are the top four things to help you decide whether you should rent or buy:

Budget

Think about your cash flow. If you find it difficult to manage your monthly expenses and credit card debt and struggle to save money, renting may be the best thing until your financial situation improves. Buying a home involves a substantial down payment followed by a recurring list of expenses. You will have mortgage payments, taxes, insurance and utility bills on a monthly basis.  Think about your current financial commitments before deciding to buy your home. A good credit score will enhance your chances of getting a good mortgage rate.

Job Stability and Lifestyle

If your job involves moving constantly or if you are planning a career change, renting will give you the freedom to do this.  Ensure that you have job stability before you decide to invest in your own home. Consider your lifestyle and your plans for the next five years in relation to marriage, having children, and job relocation possibilities. These will influence your decision to buy your own home. If you are settled in your job and plan to start a family soon, investing in your own home is a good idea.

Prices and Affordability

This relates to the cost of renting versus buying in your area since prices depend on market trends and location.  Get an idea of the costs involved with renting and buying so that you can decide which is more affordable for your specific situation and budget.

Future Prices

Home ownership is an excellent investment and one that is considered safe. In the long run it is beneficial especially in an appreciating market as you stand to gain.  Depending on the location of your choice, study the real estate market trends to get an idea of the outlook for future prices in the area.

If you are wondering what your current rent might buy check out this tool: Rent vs Buy

Remember this is just a guideline…..Everyone’s situation is unique and requires careful and personal analysis. It is a fact that your money will grow in the property market. While no one can accurately predict the future, do the research.

To help you make an informed decision about whether to rent or buy, contact me anytime. If you want to… call me right now! 604-816-8950

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