Rent vs buying
Which is better?, this has been a common question lately. With house prices rising at a steady pace a lot of home buyers are wondering “should I buy or rent until the market slows down?” The following article will give you some insight and help you make your decision easier with regards to rent vs buying.
The cost of renting in Wasaga Beach, Collingwood and Clearview is generally similar in cost. For a 2 bedroom apartment you’re looking at somewhere between $900-1100/month plus utilities. For a single detached home the price would be around $1300-1500/month plus utilities on average depending on the size. Here are some circumstances where renting is best for your situation.
- Short term: If you plan on living in a certain area one year or less I would recommend renting.
- Building a house-if you’re in the process of building a house this would make things easier for you when your house has been complete.
- Bad or no credit- If you have bad or no credit you may find it very difficult to get approved for financing. It’s always a good idea to check your credit regularly which is completely free to do. please click on link https://help-en.equifax.ca/app/answers/detail/a_id/300/~/free-credit-file-options-for-canadian-residents
- Little to no down-payment: Banks need 20% down-payment for uninsured mortgages and anything less you must have mortgage insurance. If you’re a first-time home-buyer you can put down as little as 5% down.
The major downside to renting is the rent you pay every month goes to the landlord,there is no equity being built upon.
Home ownership is a dream for many,something you can call your own and raise your family in. Historically house prices have gone up with the 2008 recession being a an exception. This has been a fear for many buyers lately. Buying a home in a high market and paying too much. There are still great deals out there and having patience and due diligence will still gain you an excellent property at great price. Here are some of the advantages of buying:
- Over time, the mortgage balance decreases and equity builds, even if the value of the home does not increase
- The ability to remodel and redecorate the home to match your needs and desires
- There are tax advantages attached to home ownership.Consult competent legal and/or accounting advice for details for your situation
Rent vs buying and the decision you make hinges mainly on your circumstances and your long-term goals.
Andrew Weaver is a licensed Realtor® with the Southern Georgian Bay Real Estate Board.
Serving Wasaga Beach, Collingwood and Clearview Township.