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Renting VS Owning

 

Let’s duke it out for one last time

 

 

             It is the debate as old as time and is as entangling as trying to do your own taxes: Is it better to be a renter or own your own home? There are so many sides to the story that everyone’s opinion seems to take over rather than the facts.

 

           Renting allows you freedom, freedom to relocate on a moments notice, come and go as you please, minimizes responsibility and can be cheaper. Owning a home is a rewarding experience, you follow no ones rules, are in charge of your domain, and have an asset that history has shown will grow in value.

Renting vs. owning has always been a hot topic for the followings reason, each displaying their own fair advice on why.

 

Let’s explore.

 

 

 

Pros

Cons

 

Renting

  • Freedom to move
  • Cheaper
  • Less responsibility

 

  • No insurance for stability
  • Rules
  • Renting is not an accumulating asset

 

 

Owning

  • A valuable asset
  • A forced savings plan
  • Control over your home
  • Freedom from landlords
  • Stability
 
  • Commitment to 1 location/space
  • Can be costly if not prepared
  • Home maintenance bills
  • Typically more expensive

 

 

             I may have missed some here yet what a great start.  I can see how the debate can be heated and both sides have a valued argument. Whenever I am approached by someone on the rental side of the fight, there is always one failed piece of information that is never considered. If owning a home is more expensive, more responsibility and more commitment, then why in the world do it?

 

You want to own a home because after years and years of mortgage payments, the payments stop. Imagine 25 years of paying a touch more per month for a home you could easily rent for less… Now imagine year 26 when the payments STOP. What would you do with that money? What would you do with that money if you sold? Owning a home is a long term investment and a forced savings plan, renting is not. For the short period, renting is great yet in the end, you are still just making your payments while your landlord smiles and owns a home.

 

In the fight against renting versus owning, count this as the knock out punch for the victor, Owning wins again.

Do you know anyone that is currently renting? There are options out there for people with average jobs and income to make home ownership possible. Call me today to learn more. 604.374.6145

 

 

Until next time,

 

Darin

 

Comments

Dana on Mar 27, 2012 7:11 PM
I'm a single female on a modest income. My rent is only $600 (for a 1-bedroom garden suite) and I bank the same amount. If I had a mortage, my costs would at least double and I'd have little to no savings. I'm one of the rare people that does not have the option of family helping me with a downpayment and even if I did have one, I'd still prefer to rent. Just one person's opinion.

Good article/video here: http://tinyurl.com/c6gdudg
Darin on Mar 28, 2012 12:37 PM
Hi Dana,

That is a great point. Some people just cannot purchase as it is more costly than renting. There have been a lot of changes in the mortgage industry, for the better, regarding who the banks will loan money to. By making sure people can afford their mortgage comfortably and are also prepared for if the real estate market takes a dip, they better the overall economy and stability of the market.

There are many homes available for around $100,000 (condominiums) which are in great neighbourhoods and safe buildings. It is just a matter of comfortability in owning and weighing out what works best for you today.

Thanks for the comment!

Darin

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