Jeff Shields RE/MAX Anchor Realty serving Qualicum Beach, Parksville, French Creek, Coombs of the Oceanside area on Vancouver Island British Columbia

Jeffery Shields - REALTOR

RE/MAX Anchor Realty
(Independently Owned and Operated)
113 West 2nd Avenue, PO Box 1890
Qualicum Beach, BC V9K 1T5 Canada
Cell: 250-240-5021
Bus: 250-752-2466
Fax: 250-752-2433
Toll Free: 800-668-3622

Own or Rent

What makes more sense?

For many renters, owning a home is an important investment and lifestyle decision. If you're considering whether you would be further ahead owning or renting, you're not alone. Start with careful analysis just like you would any other investment.

A good place to begin is by comparing renting and buying costs using the mortgage calculator on www.realtylink.org.

Renting

Looking at just the numbers, as a short-term option, renting typically outpaces buying, because of buying costs, including transfer taxes, legal fees and closing costs.

If you are in a situation that requires you to frequently move basis, renting can offer flexibility since you can pick up and go with just a month or two notice.

As a renter, you can expect to pay rent that increases at roughly the rate of inflation. This means your cost for accommodation never decreases. As a renter you can't recover any portion of your monthly housing costs. Once paid, you rent is now in your landlord's hands.

Owning

In contrast, when you buy a home, the equity, or the value of the home minus the debt owed, increases with each monthly mortgage payment made. This means that over time your equity grows until you own your home.

Over the long run, more and more of your monthly payments become recoverable since the payments are actually paying down the principal. A long-term decision to own provides you with the opportunity to recover improvement and maintenance costs. For example, homeowners who maintain their home by ensuring it is in good repair or remodel will often see an increase in sales price when it comes time to sell.

What to Do?

Homeownership is a personal and sometimes emotional decision, but it can also be a profitable one. When making a choice whether rent or buy your home consider this rule of thumb: If you plan on living in your home long enough for price appreciation to cover buying and selling costs, owning is a better alternative to renting.

Source: REBGV