Are you wondering whether you should rent or buy a home? Here are the pros and cons of each and how to make the right decision for your unique financial situation.
Many of us dream of owning our home - a space that we can truly call our own and while this can be an exciting process, it can also be very overwhelming due to the responsibilities that come with it, from choosing the right place to purchasing a mortgage protection plan.
However, when done carefully and properly, becoming a homeowner has many benefits, including the fact that it:
- lowers your financial risk
- gives you total control over your living space
- increases your investment power
- helps you save money in the long run
Affordable and Convenient Mortgage Protection Plan in Calgary
At 20/20, we understand just how big an investment your home is, which is why we’ve created flexible and affordable mortgage protection plans to keep your family financially secure through all of life’s ups and downs.
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Renting vs Buying: How To Make The Right Decision
When it comes to renting vs buying a home, there is always a heated debate about which option makes the most financial sense. However, no two situations are the same and to ensure that you make the right decision, here are the pros and cons of renting vs buying:
Renting
One of the most common arguments for buying instead of renting is: why would you pay monthly rent to a landlord instead of building equity in a home for yourself? However, there are many financial reasons why renting may be more compelling.
You need to ensure you’re in a good position to buy a house and if your social, professional, and financial lives aren’t in order, then renting may be the better option.
PROS
- You’re not responsible for the costs of maintaining the home.
- You aren’t tied up in one place should you want to move somewhere new.
- You will be able to live in an area you might not otherwise be able to afford.
- You’ll never have to worry about debt and can spend your money a little more freely.
- You’ll be able to save up a healthy deposit should you wish to buy your own home in the future.
4 SIGNS YOU’RE NOT READY TO BE A HOMEOWNER
CONS
- You’re paying off someone else’s mortgage and not your own.
- You don’t have any certainty that your landlord will renew the lease at the end of its term so you may be forced to move more often than you’d like.
- You’ll have to request for permission anytime you want to make changes to your property.
- You may not be able to find a property that suits all your needs in the area where you want to live.
Buying
While renting does come with its benefits, there is a lot to be said for the security that comes with property investment. Owning your own home will allow you to benefit from steady capital growth, as well as regular monthly returns if you ever decide to rent it out.
So if you can find an area in which you can afford to invest, buying a home might be right for you because:
- You can personalize your space and design it so that it suits all your needs.
- Unlike other investments, you are in full control of your property and make all the decisions.
- Mortgage repayments can contribute to long-term wealth accumulation.
- Owning a home provides you with more security.
However, there are also some reasons why you shouldn’t buy, including:
- The property market does fluctuate, so there may be times when you want to sell and you can’t secure the profitable price you’ve been counting on.
- Owning a home comes with many additional upfront costs including the deposit, as well as legal, maintenance, and insurance fees.
- Having a mortgage is a considerable debt and you won’t be able to spend your money as freely.
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To find out more about how our transparent mortgage protection plans can help protect your financial investment, contact us at 1-844-974-2020 or fill in our online contact form.
