3 Factors that Impact Renting or Buying
The last couple of years have been nothing short of unprecedented. So much so that we are pretty tired of the word!
With the continuation of low-interest rates and escalating home market value, the costs of both renting and buying seem to be daunting and overwhelming.
A lot of prediction has occurred on what will happen in the coming months and years. Still, if you are currently renting, the debate on whether to continue renting or buy is a real one that many people continually discuss.
The truth is…
the answer is not always straightforward and depends far more on your personal situation than the market itself.
Effective decision-making about such a significant investment heavily depends on your individual situation means that there is no right or wrong answer!
Decisions about whether to rent or buy in a growing community like the Waterloo Region are based on what is suitable for you, financially and emotionally. Factors that impact Renting or buying are far more than the financial means or goal to purchase.
Knowing if it is the Right Time
There are times in our lives when homeownership may seem like a precarious option. If your lifestyle, work or family may not feasibly be stable enough to commit for a length of time to a mortgage, renting may be a more practical solution. If you need the flexibility to move or relocate swiftly, the peace of mind of renting may win the debate. However, if you are ready and able to put down roots to purchase a home, you may be prepared to set your sights and goals on buying a home.
Fixed Costs Affect Cash flow
There is no doubt that a house purchase does bring with it additional costs. Adding those all up can make it seem impossible to handle the monthly payments of homeownership affordably. That being said, if you can get that required down payment, a recent study found that homeowners paid significantly less per month than renters in 2021. It is still well documented that it is still far more financially beneficial to buy a home than rent long-term. With interest rates at an all-time low, it is pretty clear that adults will do better financially if they get into the housing market rather than renting. So although your cash flow may be impacted short term, your long-term benefits will give you more cash flow later on.
Investment Goals
We don’t play in the stock market much, but we believe in the proven power of investing in your home. Real Estate is unquestionably one of the strongest ways to have your money grow while you are sleeping, literally! However, we know that Real Estate is not the only way to produce new money! If you have a different direction on investing in some way, that is totally ok! And sometimes, your investment goals are not financial only. For example, if you are investing in your education or retirement, you may not want to invest in real estate right now.
The truth is, most people do want to get into the housing market at some point in their lives. Homeownership nourishes pride, allows freedom and stability and is a haven for making memories not nearly as achievable with renting.
There is undeniable evidence that your investment will grow and that it may not impact your cash flow as much as you think, given the skyrocketing rental prices in the Region. If you believe it could be the right time, then we would love to help you access experienced experts to help you discern how to turn your dream into a real scheme.
