Start by finding out the average home price in the area where you want to live. Next, make a list of the pros and cons of owning versus renting to see which option is best for you. Use the following as examples.
Renting
PROS
• Less maintenance and repairs
• Lower monthly and upfront costs
• Shorter-term commitment, making it easier to move to a new home, neighbourhood, or city
• Protection from a decrease in property values
• Possibility to free up cash to invest or to save a larger down payment for a home
PROS
• Less maintenance and repairs
• Lower monthly and upfront costs
• Shorter-term commitment, making it easier to move to a new home, neighbourhood, or city
• Protection from a decrease in property values
• Possibility to free up cash to invest or to save a larger down payment for a home
Cons
• Monthly payments may increase year after year
• The risk that your lease won’t be renewed
• You are paying someone else’s mortgage rather than building equity of your own
• You can’t paint or remodel without the landlord’s permission
• Monthly payments may increase year after year
• The risk that your lease won’t be renewed
• You are paying someone else’s mortgage rather than building equity of your own
• You can’t paint or remodel without the landlord’s permission
Owning
PROS
• Freedom to renovate or modify your home as you wish
• You are building up equity in a safe, secure investment as you pay down your mortgage
• Potential for rental income if you include a secondary suite
• Stability and peace of mind that comes from being in control of your investment and owning the place where you live
PROS
• Freedom to renovate or modify your home as you wish
• You are building up equity in a safe, secure investment as you pay down your mortgage
• Potential for rental income if you include a secondary suite
• Stability and peace of mind that comes from being in control of your investment and owning the place where you live
Cons
• The risk of a financial loss if your home has lost value when you sell
• Responsibility for all ongoing costs including mortgage principal and interest, property taxes, insurance, and maintenance
• Monthly payments can increase significantly if interest rates go up at renewal time
• Possibility of unexpected and potentially costly repairs
• The risk of a financial loss if your home has lost value when you sell
• Responsibility for all ongoing costs including mortgage principal and interest, property taxes, insurance, and maintenance
• Monthly payments can increase significantly if interest rates go up at renewal time
• Possibility of unexpected and potentially costly repairs