Renting vs. Owning, what should we do? Buying home in Vancouver is so difficult to afford today, every resident living in this city has to think about this question.
For most of the renters, owning a home is a lifelong dream come true. However, how many of you renters can think of executing your decision of buying a place as a good bet? Not too many!
To decide whether to own a place or to buy one is sure to place you in a state of dilemma. Each of your decisions is warped with advantages as well as disadvantages. And this certainly makes it even more difficult for you to decide.
Try considering the following facts which might help you in your decision making better.
Advantages of Renting
- Higher fixed costs on a lease period
- Negligible deviations in the equity
- You are blessed with the preference to move out whenever you desire to
- Low maintenance costs (relatively)
- Smaller down payment
Renting Disadvantages
- Forget of recovering your equity
- Restrictions in modifying your home
- Zero tax advantages for you, while all tax breaks for your landlord
Buying Advantages
- Your equity is sure to build with the passage of time, with your mortgage costs lessening over a time period even if housing prices remain unchanged
-You can modify and revamp your house the way you want it to
- Several tax benefits attached to homeownerships
Buying Disadvantages
- Maintenance costs amongst other costs may suffer fluctuation
- Fluctuations in equity cannot be barred
- Generally you have to sell-off your house if you wish to move out
- All the costs attached to your home must be borne by you alone
- Down payment for your home is generally a big sum
Hence, only if you wish to stay at a single place for a long duration it is optimal for you to buy the place, otherwise think of renting a place instead.
Renting is preferred by most households as it gives them the flexibility to combat with job changes wherein moving to any new place cannot be ruled out
In case where the nation's economy depicts a possible turmoil, renting would be the best option to go with. Also, you could adapt to certain unexpected scenarios in life better by renting a place. Fluctuations in the economy can be better dealt with through renting. Moreover, in recent times the housing index has gone up substantially thus not making it affordable to own a house anymore.
On the other hand, if you are living a stable life-style which is less dependent on external factors then owning a home makes sense. Also, rent denotes pure cash outflow, which once paid never comes back to you. The cost of renting could vary with the rise in inflation, which is generally so in most cases.
In your owning a house, your monthly payment of mortgage would in fact reflect on increasing your equity as well as your credibility in the market, whether amongst bankers or other loan lending organizations.
Likewise, capital gain arises from purchasing of home, as in most cases housing prices tend to appreciate with time.
A house bought in 1975 in Vancouver for $57,000 is now worth over $900,000 in 2012 makes buying a home formidable option. See? Buy house in Vancouver, it has been helping many home owners making tons of money in last several decades.
Owning a house renders you increased privacy along with good control over your property. You do not have to worry about landlords and any permission you would otherwise have to ask for carrying out modifications to your living place. Also, you have more benefits to reap from owning a place than face certain demerits of inconsequence.
However, to each his own! As buying a home for some could prove to be a costly affair to cope with, renting would be a feasible option for them. In the end, one ought to dwell into his independent scenario without getting swayed away by any lucrative notions attached to owning of a house.
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