It’s a question of value
Home ownership is considered the ideal for so many reasons. Stability, intergenerational wealth creation, and security in retirement are just a few reasons why people buy a home. Renting a house or apartment has it’s own benefits, such as low-maintenance, rent control, and the ability to move without the expense of selling. Let’s compare the two and see which one might be best for your situation.
- Added costs such as mortgage interest and property tax
- Pride of ownership, flexibility
- Build equity through mortgage payments
- Make improvements or customize
- Appreciation is not guaranteed
- Fixed monthly cost, all-inclusive
- Freedom to move at any time
- Discipline to invest is required
- Limited opportunity to customize
- Rent controls limit increases
When you’re comparing the two, ask yourself which scenario suits your lifestyle better. Buying a home is a popular choice and best suited for those who want to live in the same property for 7-10 years. If you’re intending to buy and then move within 7 years, your costs can exceed the appreciation (depending on area), which means that renting is the most cost-effective choice.
A lot of rent vs buy calculators are designed to help you figure out the monthly costs of buying a home but it’s a good idea to consider your financial wellbeing, too. This calculator shows your long-term costs compared to your wealth factor (assuming you invest the difference).
Are you ready?
Home ownership is more than economics!
Will owning a house or condo improve the quality of life for you and your family?
Ask your REALTOR® to explain the benefits of home ownership to you in detail
If you want to own a home and you’re financially prepared for the commitment, then now might be the time