Renting vs. Buying
Everyone needs a place to call home. But is it better to rent, or should you take the plunge and buy? The fact is, there’s no ‘one size fits all’ answer. It’s a big decision, and only you can decide what’s right for you.
Generally, you can expect to spend more each month for your mortgage and related costs than you would for a rental. Of course, the exact percentage will vary depending on your other debts. And keep in mind, aside from your mortgage payments, your monthly income must still allow you to maintain a comfortable standard of living. If you take on a mortgage, will you still be able to afford food and clothing, gas, car insurance and repairs? What about vacations or other leisure expenses?
If you expect a monthly debt load approaching 40% of your gross income, including your mortgage, you’re probably not financially prepared to take on a mortgage.
Buying a home isn't just about the money. There are many personal factors to weigh before making the decision that's right for you.
Are you looking for a stronger sense of place within your community? Are you willing and able to maintain and repair your own property and home? Do you want the stability of home ownership as the foundation for starting a family? If so, then home ownership may be a natural next step.
On the other hand, maybe you prefer the freedom to move to a different neighbourhood or even a different city. Or maybe you're anticipating a promotion at work or planning a leap into an entirely new field or career. In cases such as these, renting is probably your best bet.