Should You Buy Or Rent Your Next Home?

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Handing over your hard earned money is a big decision. Choosing between a down payment on a new house or funneling it straight into the pocket of a landlord is one of the biggest financial decisions you will ever make in your life time. Unfortunately, there is no cookie cutter answer that will satisfy everyone. However, here is how to figure out whether you are ready to dive in purchasing your own home.

Are you a drifter?

       Renting a house allows you to be more mobile in a sense. Entering into a one- to two-year contact doesn’t mean you are signing your soul away. At this point you are not bound by long term financial commitments or repercussions. Therefore if you’re planning on running away to Paris or simply changing neighborhoods, you may want to rent for the time being.    

Worried about the varying cost of rent?

       Prices never seem to stay the same, unfortunately rent is no exception to the rule. It continues to climb higher and higher until it is just “too damn high”. On the flip side, traditional mortgages generally remain constant year-to-year. If you’re able to refinance at a lower interest rate, your monthly payments may even go down. Highly unlikely when it comes to a landlord.

Does the math add up?

       Math can be tricky when you start getting into the nitty-gritty; however in this situation the question is simple: if you subtract your existing debt and average monthly expenses from your monthly take-home pay after taxes, what is left? Do you have enough money remaining to comfortably cover the cost of a mortgage for you home? Furthermore, do you have enough left over to cover all the costs associated with being a homeowner such as insurance, property taxes, utilities and much much more? Once you can determine this rudimentary decision, the daunting rent-or-buy- decision becomes a lot easier.



Once you have made a decision it is best to leave the rest of the hard work to a trusted agent. To view thousands of listings for free check out OntarioPropertyShop.com.


Information taken from: http://www.cosmopolitan.com/lifestyle/a62563/buying-vs-renting-home/ 

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