If you set out to find out the pros and cons of buying or renting a home, the response you get will vary depending on who provides the answer. A mortgage broker will also respond according to ho is asking. One can argue that it pays to own a home because of long-term gain that comes with it, but on the flip side, a broker with Owemanco will expose you to the rules guiding ownership of a home and help you to make an informed decision.
A cursory check at Real Estate sites for home listing will provide a snapshot of homes and prices for an idea of what amount to have for buying a home or settle for a rent. This discussion on Pros and Cons of buying or renting a home should be an eye opener for you to decide what to start considering.
Pros of Buying vs. Renting a Home
Mortgage borrowers with Owemanco will attest to the fact that the homebuyers’ lending rules can be daunting but the prospect of becoming a homeowner brings everlasting joy. But if you are on short work relocation with a family elsewhere, renting a home makes a perfect idea. Let’s consider some pros and cons of buying versus renting a home to know where to pitch your tent.
|Home buying||Home renting|
|Pros||– Home value will appreciate and provide a high return on investment with more profit for the owner.
– It’s a legal property that offers more freedom for the owner.
– Freedom to do what you like on your property which a tenant cannot dare.
– Your home can be a source of income (rent for money).
– Improved creditworthiness as the owner repays the mortgage.
– Opportunity to get lump sum through home refinance for significant investment.
– It offers collateral as Security for family and another financing. –
|– No need to pay homeownership tax with the opportunity to save more.
– Freedom to move anywhere you like. You can travel without worrying about the mortgage payment.
– The flexibility of expenditure. If the current apartment becomes costly, you can get a better one for less.
– No need to worry about real estate crash. Even when it rises beyond your expectation, you can change location.
– Investment diversifications as you are not tied to any mortgage debt servicing and no need to panic in case of a natural disaster affecting homes.
|Cons||– Spending the better part of your existence to pay a mortgage isn’t a child’s play.
– Payment of lease for the home is tough, in the first few years, for homeowners because of so much is competing with so little resources.
– High-interest rate and mortgage broker commission all make the pressure for buying a home so much for the owner.
|– Ongoing cost means you have to meet your rental obligation whether there is money or not.
– The amount spent on renting homes when put together can make you a homeowner, but you are still a renter chasing after real-estate agents every year.
– You can make changes to the rented apartment without legal problems.
There are good and bad situations for buying versus renting a home. But it depends on what you want. Visit Ontario Wealth Management Corporation and talk to a mortgage broker for a possible mortgage with Owemanco.