Renting vs. Buying

As we move through life, we're often faced with big decisions to make. Here's one of them: should you rent, or should you buy a home? Hmmm.

On the financial side

You'll generally spend more each month for a mortgage and related home ownership costs, than you would if you were renting. How much more will vary, depending on your mortgage payments, your property taxes, home insurance and maintenance costs. And you'll still want to keep a comfortable standard of living that includes your food, clothing, entertainment, vehicle and insurance, gas and miscellaneous expenses. And then there are the costs of going on vacation now and then. Plus putting money aside for savings. 

So, rent vs buy? If you do the math and end up with a potential monthly debt load approaching 40% of your gross income, including your mortgage, you're probably not financially ready to take on home ownership quite yet.

And some personal considerations

Renting vs buying a home isn't just about money. There are a few other things to think about. Are you looking for a stronger sense of place within your community? Are you willing and able to maintain and repair your home and property? Do you want the stability of home ownership as the foundation for starting a family? If so, then buying a home may be the right step.

On the other hand, renting a house or a suite in a neighbourhood you like can give you that same sense of community involvement. By renting, you'll also have more freedom to move to a new neighbourhood or even a different city. Maybe you're anticipating a promotion or transfer at work, or you're planning a leap into an entirely new field or career. In these cases, renting is probably your best bet.

 

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