Not sure whether you should buy a property or rent one? There are benefits to both options based on your current financial situation and lifestyle. If you need help weighing your options, here are some factors to consider.
When Renting Is Better
For most people, renting is their only option if they don’t have enough of a down payment saved up yet to purchase a home. However, some people who are in a position to buy still prefer to rent because there is less commitment involved. If you’re not ready to settle down in a particular area, renting can be a good option for you until you’ve determined where you want to live long term. If you don’t like your current area or your neighbours, you have the flexibility to pack up and move to a new location. Renting is also better for those who don’t have stable employment. If you lose your job or get laid off, you can put in your notice and easily move in with relatives or friends until you get things sorted.
When Buying Is Better
When you’re ready to plant your roots in one location and you have stable employment and steady income, it’s a good time to buy. Owning a property offers you more stability and security. As the market value of your property increases over time, you will build equity in your home, creating a comfy nest egg for you in the future. The property will also be yours to change and alter as you please (as long as it follows the bylaws and lenders guidelines). If there’s something you dislike or want to alter, you have the freedom to change it. When you own, you also have the option of renting out a room or a secondary suite to make additional income. Creating a rental scenario can help you offset the mortgage and put more money back into your pocket each month.
There’s a lot to be said about owning property. Not only are you free from restrictions put in place by a landlord, but you also have the ability to build up equity in your home and rent it out to amass a greater net worth over time. If you have enough money saved up for a down payment and are seriously considering buying, contact us at The Mortgage Advisors and we’ll help you get the right financing you need to make that dream a reality.