realtylinkonline

Owning vs Renting - which is best for you?

For many people, owning a home is a lifelong goal. Whether you dream of a high rise condo in Yaletown, a modern townhome with friendly neighbours in Burnaby or a small acreage to call your own in Maple Ridge, making the decision to buy a home is an important lifestyle and investment decision. So where do you begin?

Choose a REALTOR®. A REALTOR® knows the benefits of owning a home and can help you find the home best suited to your needs. When renters calculate the cost of financing a mortgage compared with the amount they spend on rent, they’re often surprised at what they can afford. Talk to your REALTOR® to find out the possibilities for you.

Check with your financial institution. Interest rates are at historic lows making now a great time to buy. You can lock in at today’s great rates knowing that should rates drop again, you can always renegotiate. Your financial institution also undertands that with each monthly payment made the equity in your home increases.

Own vs. rent. In a poor local economy and when interest rates are high, renting can be an option. But Vancouver’s improving economy coupled with low mortgage rates, makes owning a home a sensible choice. The real estate market moves in cycles and while prices do fluctuate, housing prices have always increased over time. Renting will only outpace buying in the short term, so unless you’re in a situation that requires you to move in the near future or on a frequent basis, owning will be a better financial decision.

The long term. Buying a home allows you to recover improvement and maintenance costs. Homeowners who keep their home in good repair or remodel will often see an increase in price when it comes time to sell and will eventually own their home, making all those payments recoverable. Rent, on the other hand, moves with the rate of inflation meaning your cost of living never decreases and renters can never recover any portion of their housing costs. Once paid to the landlord, your money is gone.

Homeownership is an important decision and one that can be profitable. Look at your situation and assess your wants and needs. You might find that your dream of owning a home can become a reality. Talk to your REALTOR® about how you can get yourself into the home of your dreams in today’s real estate market.