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Blog by Thomas Krause

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Buying Vs. Renting: Which Option Should You Choose For Your Canmore Home?

Buying a home in Canmore can be the most rewarding and exciting purchase you will ever make. However, depending on what your current circumstances are, buying may not be the best option for you. While it is true that everyone would love to own their own home, this is not always possible when you consider the huge investment necessary. There is also the issue of practicality when buying the home. When looking at homes, you need to determine whether you should buy or rent the property. In order to help make the best decision, you need to ask yourself some important questions.

Is this something you really want to do right now?


The first question that you should ask yourself is whether you want to buy a home right now. Do you want to own a home or do you have other priorities? Owning a home is a matter of choice and you are the only one who can decide whether home ownership is a priority to you. If you decide that owning a home is important to you, you need to start thinking about how you spend your money and the lifestyle changes that you may need to make. This is a huge investment and one that you need to make after careful planning and consideration. Assess how much house you can afford and what your needs are.

What are your future plans and do you plan to move soon?

Ask yourself how long you intend to stay in the home before you make the decision to sell or rent. Most people will not want to invest in a home where they know they will not live for too long. If you are the type of person who moves around a lot for work or simply for a new experience, buying a home may not be right for you. While it is true that you can always sell the house when you are ready to move, think about the transaction costs involved in buying and selling. If you intend to live in the home for a couple of years, buying will be worth your while especially if the value of the home goes up by 10% or more.

Is your current employment situation stable?

The only time you should think about buying a home is if you are in stable employment. Unless you have a huge amount of money stashed away, you will need a mortgage and this usually means having stable means to pay back the loan. Home ownership will require regular payments such as the mortgage, insurance, property taxes and maintenance fees among other expenses. Missing payments can lead to terrible consequences for you as a homeowner. If you do not have a stable job, consider renting until your situation changes. Your financial situation will help to determine the mortgage rates you will get.

What are you willing to pay for the home?

Before you start looking at Canmore houses for sale, you need to determine the maximum amount that you are willing to pay. Consider how much rent you are currently paying and determine if you can afford to make monthly loan payments. When qualifying for a mortgage, most lenders will require that your housing costs not be more than 33% of your current gross income. Remember that housing costs include mortgage payment, property taxes and utilities. When buying a home, you have to ensure that you have money set aside for emergencies. This may not be as easy as it would be if you are renting but it is vital.

The financial consequences

Do your homework when you decide to buy a home. Investing in a home can be very satisfying even if you decide to sell the home ten years down the line. You can build a rather substantial nest egg when you make the decision to buy. From a financial standpoint, making the decision whether to rent or buy will come down to your budget as well as the cost of borrowing. If you can access good interest rates and you have the down payment required, you can actually find that it will cost you the same each month to rent or buy. If you pay high interest rates, the cost of owning can cost you a huge amount. Consider the changing market conditions when determining the best decision.

Conclusion

While it might seem like buying a condo will cost you more than renting, it is important to think about your options and priorities. There are many benefits of purchasing a home over renting. Buying a home is a long-term investment, many times a very good one. You need to remember to consider the buying/selling costs when you decide to sell your home. The return on your investment will vary substantially depending on the market conditions. Working with a professional real estate agent is the best way to ensure that you make a sound home purchase decision.