Rent or Buy? Are you struggling with the decision to own a home or keep renting?
Here is some advice, tips and tricks to help you make the decision that is best for you!
Owing a home is NOT the 'Be all and end all" If you can't go out for dinner once in a while, see a movie, or save for a holiday - it's not worth it in my opinion. Having a balanced life with reduced stress is more important than having Title to a property.
So, get good advice before you buy. A mortgage broker and even your Realtor can help you make this determination.
If you rent, you have the freedom to walk away from that home - it doesn't matter what 'The Market' is doing and you don't have to 'maintain' the property. Further, you can 'Test out' various neighbourhoods and frankly, renting can be cheaper than paying a mortgage.
Ok, that's all I've got - as a Realtor, I have seen the benefits of Owning!
The money paid every month is actually 'Forced savings'. You are investing your hard earned $$ into yourself. Yes, there are responsibilities that go with that, and some self-denial - but it shouldn't be a hardship if you are ready.
Ready means having a large enough down payment to keep your mortgage payment manageable, not having a lot of personal debt, and having a stable job. Daunting I know - but there are ways to plan and do this!
Some people are waiting for the Market to take a 'Nose dive' - wait away... There will be peaks and valleys for sure. If you look at historical data, (the last 30 years) take note: each 'peak' is higher than the last. In the early 1980's you could buy a house in a premiere neighbourhood in Vancouver with a large back yard (large front yard too!) under $500,000. Today, those same dollars will buy you a one bed apartment on the West Side.
Real Estate has proven to be a good investment. I haven't seen any home owner decide to take their money out of their property and rent - (unless it's for a retirement living arrangement) and that tells you something doesn't it?
Also, with interest rates low, who wants their hard earned dollars in the bank where they won't earn much?
Your money should grow - here are the keys:
1. Buy the best location within your means (I would recommend something small in Vancouver, if you are a first timer - your money will go to work faster and you can always move to the 'burbs' to buy something bigger when you investment has grown - plus Vancouver is AWESOME!!)
2. Don't over pay (I can help with this - in this competitive market people pay over the asking, but aren't over paying actually...)
3. Have a 5 year plan (in 60 shorts months, you should see an increase in your nest egg)
The Real Estate Market will ebb and flow - no question. Have a long term vision - this is retirement planning!