If renting, you have probably thought about buying your own home…but it can seem like such a big step.
Saving for a down payment can at times be daunting especially if you are a first-time buyer. Owning a home means financial responsibility for mortgage payments, taxes, insurance and maintenance. It’s a big commitment.
Renting has some real advantages, such as:
1. If you are an apartment dweller, you never have to mow the lawn. That’s because you don’t own a lawn.
2. You never have to pay for repairs. Well maybe, but typically rental payments take repairs and other costs into consideration; so in effect you are paying for them.
3. You don’t have to paint or wallpaper. Apartments tend to come in white, off-white and beige, and most landlords are reluctant to have you change colours or wallpaper. Landlords fear that If you paper and don’t paint neatly and professionally, it’ll cost more to clean up and repaint once you move out.
4. You can walk away as soon as your lease or rental agreement is up. Renting does offer easier mobility and that’s great in certain stages of life. At some point, however, most people want the dream of home ownership, since with continual renting you walk away with zero in equity and no increase in your net worth.
If the advantages of renting are beginning to lose their appeal, maybe it’s time to get serious about buying a home. Sure it’s a big step, but with a little homework you can examine your options and choose the one that’s right for you.
Nobody likes flushing money down the drain but that’s what you’re doing when you hand over your rent money every month. The moment it leaves your hand your money is working for someone else and not building equity or net worth for you and your family.
Over the long term, renters can expect to pay rents that will move up at roughly the rate of inflation, so their costs for accommodation never decrease in real terms. To make matters worse, they can't recover any portion of their costs; once paid, their rent is gone.
It is possible to own your own home and make your money work for you! Let us help you or, alternatively, refer you to one of our in-house mortgage agents. They’ll help you assess whether renting or buying is best for you. They can pre-qualify you and explain the various options available. Buying with a minimum 5% down can start you on the road to ownership and equity building.
*author - Eugene Pilato - Broker, Century 21 Today Realty Ltd. Brokerage