Trying to decide if renting or buying is for you?

Start by finding out average home prices where you want to live.  Next, make a list of the pros and cons of owning vs renting to see which option is best for you; the following are some examples.

RENTING PROS

• Less maintenance and repairs
• Lower monthly upfront costs
• Shorter-term commitment, making it easier to move to a new home, neighbourhood or city
• Protection from decrease in property values
• Possibility to free up cash to invest or to save a larger down payment for a house

RENTING CONS

• Monthly payments may increase year after year
• The risk that your lease won’t be renewed
• You are paying someone else’s mortgage rather than building equity of your own
• You can’t paint or remodel without the landlords permission

BUYING PROS

• Freedom to renovate or modify your home as you wish
• You are building up equity in a safe, secure investment as you pay down your mortgage
• Potential for rental income if you include a secondary suite
• Stability and peace of mind that comes from being in control of your investment and owning the place where you live

BUYING CONS

• The risk of financial loss if your home has lost value when you sell
• Responsibility for all ongoing costs including mortgage principal and interest, property taxes, insurance and maintenance
• Monthly payments can increase significantly if interest rates go up at renewal time
• Possibility of unexpected and potentially costly repairs

There are advantages to both renting and owning a home. Make sure you understand the benefits and responsibilities of each before you decide what’s right for you.