You are about to make a difficult decision: should you rent a house or buy one? At one time or another, most people will think of these two options. Is buying a house always the best solution? The following article will tell you 5 things to know before making your decision.
1. Buying a property is an investment
Most people will tell you that renting a property is an expense while buying it is an investment. Over time and depending on the market, the value of a property increases. However, some tenants prefer to invest the money they save by making financial investments on the stock market, for example. However, this option requires consistency and a lot of discipline.
2. You make the decisions
Buying a house or condo makes you the owner. Any market profits associated with your investment will benefit you, not an outside owner. In addition, you are free to make changes by being able to customize your living space according to your tastes and needs.
3. Time Matters
If you plan to stay in your home for more than 4 years, buying is usually a good option. However, a visit with your mortgage expert and a professional real estate agent is helpful in making long-term projections on the cost of renting versus buying.
4. Major factor: the mortgage rate
Beyond the price paid for your property, the mortgage rate to finance it will have a major impact on your decision to rent or buy. At the moment, the rates are still relatively low (but less than a few years and even months ago), but the trend is bullish. This is an aspect to consider in the calculation. It can also help you choose between a variable or fixed rate depending on the rate in effect at the time of purchase.
5. Mobility must be considered
Again, timing is important in the decision process to buy or rent a home. Your mobility can also make this decision crucial. You may want to rent if you want the flexibility to move from a neighborhood or city when the opportunity arises. Some job opportunities may require you to move across the country, which may impact your decision.
Do not hesitate to call an expert who will guide you through the experience and provide you with useful information about the world of real estate. You will then be much more serene in your decision to buy or rent a property.