One of the harder questions to answer is whether you should buy or rent the place you call home. In this article, we go over the costs of home ownership and renting, while pointing out the advantages and disadvantages of both.
Expenses for Buying Vs Renting Your Home
Although the costs associated with owning a home are higher as opposed to renting one, there is one important factor to point out. A portion of the mortgage payments paid towards the loan are recouped by way of the principal loan being paid down. For instance, in the example provided above every month $918 are paid towards reducing the initial loan amount. So in actuality the true cost of home ownership would be $1,750 ($2,668 - $918 = $1,750) since, eventually, all the principal paid will be collected at the time of sale or the property will at one point become mortgage free.
Aside from that, it is also important to point out that when making the decision to buy or rent you have to assess several aspects such as “How long do I want to live in this house for?” ,“Do I want to live in downtown Toronto or in the Greater Toronto Area”, “Am I looking to invest in a house or just live there for a couple of years then move?”. These are just a few of many things to consider prior to committing to property ownership.
Advantages & Disadvantages of Buying a Home
Here are the advantages and disadvantages to consider when purchasing a home.
Advantages & Disadvantages of Renting a Home
Here are the advantages and disadvantages to consider when renting a home.
We hope this article gave you a more clear idea regarding what to consider when determining wether to buy or rent your next home. As always, if you would like to learn more or get more accurate numbers for the specific type of home you are looking for - feel free to message via our live chat on dwelly.ca