Buying a home, especially your first home, can be stressful but also exciting and a lot of fun. There are a lot of differences between owning and renting and each have their own advantages and disadvantages. This guide will help you decide if home ownership is the right choice for you.
- Are you financially stable?
- Can you afford the mortgage, condo fees, and maintenance?
- Are you interested in maintaining a property?
- Can you afford to buy in the areas you like?
Renting is simple
Renting is easy and the most flexible option because you can move when you want. The downside is that you are paying off the landlordâ€™s mortgage and you have to move if the property sells. The advantages include the following:
- Fancier accommodations especially in urban centres
- Perks like pools and gym
- All inclusive expenses
- No maintenance
- Move when you want
- Cheaper by the month
- Opportunity to invest other than in housing market
- No risk during downturns
- No property taxes
Buying builds equity
Often buying a home is simply a less expensive option compared to renting when housing appreciation and rent increases are factored in. Owning has more responsibilities and more risk but the advantages include:
- Financial growth through equity
- Leveraged investment with low down payment
- Control of your space to decorate or renovate
- Payments that actually decline in real terms through the life of the mortgage
- Sense of pride in ownership