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Renting vs. Purchasing a Home. Which is Best for You?

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It’s a question everyone with a certain level of financial stability asks themselves: is it best to rent or buy a home? It’s a question with a lot of facets that need to be examined before a decision can be made wisely and everyone weighs the positives and negatives differently. So what’s right for you? The (relatively) worry-free life of a renter or the challenges and benefits of ownership? Here are some factors to keep in mind.

Costs

More than likely, as a renter, you’ll have a fixed monthly cost with an additional month’s rent to start and a deposit for damages. You may have to pay for certain utilities based on your tenant agreement but in general your monthly costs will be lower than an owner. A home owner not only has to pay a handsome down payment and a monthly mortgage bill but also will incur utility bills, taxes, maintenance, and any unforeseen costs. While regular costs are clearly in the renter’s favour the overall financial situation can be a bit more complicated.

Return on Investment

It’s more complicated because the owner reaps the benefits of an increased value on their home and the ability to get money back out through selling it. A renter is basically pouring money into their landlord’s pocket. That’s perfectly acceptable but those looking for long-term investments can rarely find a better one than their own home

Flexibility

In terms of flexibility of movement a renter can move whenever their lease comes up while an owner must find a buyer and sell his or her home which might be difficult depending on time of year or the state of the market. However, in terms of the ability of someone to make changes and improvements to their living arrangements, the homeowner clearly reaps those benefits. A new kitchen or bathroom can be paid for and that value added on to the worth of the home. If a tenant does the same thing they will not be reimbursed for money or time spent.

The Intangibles

For the more analytical among us ‘pride of ownership’ may seem silly but for many it is a powerful urge. The feeling of being part of a community, of buying in, and laying down roots for yourself and generations to come is an incredibly strong lure. If that’s the case for you than you may have already made your decision.

In the short-term renting is less expensive, but ownership is a better investment long-term. Which way you go will be up to you and your personal situation, but if you are in the market for a beautiful brand new home in a terrific neighbourhood register for updates and we’ll send you information based on your preferences on house type, size, and price range.



Filed under: New Home Benefits by Marshall Homes

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