Buying vs. Renting

Buying a home versus renting is as much a personal preference for some of us, as it is an investment decision. Purchasing a home allows us the freedom to decorate, renovate as we wish, and establish roots in the community. Our lifestyle will determine where our priorities are in this area. It is an investment that will appreciate in value and provide us with a sense of security for our future. However there is a good argument to be made that it is more of a lifestyle investment. Whether investing in retirement saving, stocks, bonds or other investments might produce a better overall return, very few of us are disciplined enough to see it through. Look at it this way, if for example you are expecting a large tax refund this month, are you more likely to invest those funds or go out and make a consumer purchase of some kind. The majority of us fall into the latter, we lack the discipline to save money and it is much easier for us to have a forced savings such as a mortgage payment every month, and in the long run we will receive a return on that investment, that if renting we would never realize.

So when is a good time to buy, what is a buyer or sellers market? There are many variables that will determine the type of market, such as demand, economy and world affairs to name a few. For most of us this is not a subject that we need to delve into, most of us will only buy one property to be used as our residence. It is more the investors who invest heavily into the real estate market that need to stay in tune to these trends. Obtain an independent opinion to be knowledgeable about the current market and future forecasts. Canada Mortgage and Housing Corp. follows these trends and produces some excellent guidelines for the average home buyer You can obtain these reports on their website. Home Buying Step by Step is one such report and provides some excellent advice. In addition they provide current regional market analysis that is available by province, details for obtaining these are available on this page of their site.

To assist you in your decision making I have made available for your personal use a Rent vs Buy PC Calculator, you can download it here. If I can be of assistance in your decision making process, don't hesitate to contact me.