First, have a good understanding of where you stand financially today.
That means finding out whether there’s enough money for a down payment — a minimum of five per cent of the home’s purchase price. It’s also important to look at what other debts you owe and how stable your employment is.
And the down payment is just one cost to consider. Potential home buyers should set aside another 1.5 to three per cent of the purchase price to take care of closing costs.
Once the papers have been signed and the property is yours, it’s not just the mortgage payments that you have to worry about after that.
Can you afford property taxes, condo fees, heat, electricity and repairs?
When you own a home, you can’t call the landlord. Guess what? You’re the landlord.
You have to create a cushion in your monthly budget to provide for these additional costs.
At the end of the day, if you continue renting, you’re building someone else’s future.
Sometimes it does make sense to rent if you’re moving around frequently for work or if the money simply isn’t there.
I would say, yes definitely it would make sense to rent, but always with the plan to build toward home ownership.
Long term renting to me does not make any sense if you can build towards owning something. So build up your down payment and buy a property that suits you best. When you are ready or if you have any questions, call me at 604-551-4129.