Rent vs. Own
Thursday Nov 21st, 2019Share
Rent vs.Own, there is no correct answer to this question based on today’s market conditions, however you are paying mortgage anyways; it may not be your mortgage if you are renting but surely your landlord’s.
There can be multiple other factors when we’re unable to purchase a primary residence. The high cost of real estate in metro cities causing home buyers not being able to afford to buy a decent place to live in.
There are some benefits of renting, it has low carrying cost vs. owing a property. Most of the time you pay rent all inclusive or the rent plus the portion of utilities you are consuming. It gives you freedom to move from one place to another without worrying about selling or taking care of your owned property. You may be able to spend more on vacationing. There is no worry if the interest rate is going up or down. It may give you chance to save down payment towards your future owned property; however, your bank savings depend upon your lifestyle and the habit of spending.
In the long run, if you own a home you are financially better off then the renters. You participate in forced savings when paying towards your mortgage every month. The mortgage payment has two parts, one part towards the interest and the other to the principle amount, which is your savings. Also, the rise in home prices over time, result in greater capital appreciation. You can rent portion of your property and generate monthly income. Own a home provides stability, security and freedom. Many lenders are willing to provide you future loans if you own a property. It is easier to get a secure line of credit at lower monthly interest rate. An owned property is your retirement savings. It is a proven fact that real estate is a better asset than any other asset type.
In my opinion, owing a property if you can afford is far better than renting if your monthly mortgage payment is same or less than your monthly rent. Few lifestyle changes will enable you to take care of other costs associated with the ownership of the property.
We provide complimentary guidance and help to all of your real estate related questions!
Monika Vaid, salesrep @ Royal Star Realty Inc.,
Phone - 647 300 3643