The question whether to buy or rent is a financial one-and its big. That is the reason why it should be taken seriously. Here at Team Leading Edge, we tried to weigh in on the topic and provide you with a few pros and cons on each side of the coin.
Make the most of it as it may prove to be the difference between owning a dream house or being caught in a financial meltdown.
1. SECURITY FROM BEING FORCED OUT
Stability is one of the best advantages of being a homeowner. Under any circumstances (and assuming there’s no more mortgage) nobody in the world can force you out of your home.
As a homeowner, you have the full advantage of having the highest level of privacy that the law of the land can offer. If you choose wisely, you can avoid the trouble of dealing with neighbors being “too” close to your property. Keep that in mind.
3. PROPERTY APPRECIATION
A real estate property in a prime location would surely increase in value over time. There is a huge possibility that you can earn a hefty sum in the future once you sell the house. But of course you would need great real estate agents such as Team Leading Edge to help you achieve that.
1. LIMITED MOVEMENT
By that we mean you may not move or live from one location to another as fast as you would if you were renting. This may become a bit troublesome if you’re current job requires you to move around a lot.
2. FINANCIAL OBLIGATION
Like what we have said, owning a house is a financial decision. Once you mortgage the house, you have to commit to pay for it. If you would not, worst case scenario, you’ll lose the house.
3. MAINTENANCE COST
Just like having a car, you have to provide maintenance to the house and that means money out of your pocket. Plumbing, repainting, heating all of that would be on your expense checklist once you own a house.
We put this at the top since we know you’ll like it. When renting, you would not need to pay real estate taxes! This of course needs to be written on your lease contract with the owner for you own security.
Unlike mortgage rates where homeowners have to pay a substantial amount of money, tenants pay less for using the house and by paying less that would mean you could save more.
3. FLEXIBLE MOVEMENT
By renting, this would allow you to move from one place to another at any given time. If you do not like the neighborhood anymore or if work demands you to move to the Philippines, you could easily do it.
1. POTENTIAL TO BE FORCED OUT
In extreme instances, there’s a very possibility that you could be forced out by the landlord if he/she decides to sell the house or use it for him/herself. Although you might be given 30 or more days to pack, this kind of circumstance would put you in a very troublesome position.
2. RENT MIGHT GO UP
Unless it’s written in the contract that you’re rental rate would stay fixed for x-number of years, then, you run the risk of having to pay an escalating rent.
3. WHAT YOU SEE IS WHAT YOU GET
As the title imply, everything inside the rental property would stay as is. If and when you would like to remodel the house, you would need the approval of the landlord. In a financial point of view, this kind of action would not be practical. Would you really spend money to fix or improve a house that is not yours?
We hope these pointers would help you making a good decision. If you are thinking of buying a house or would like to invest in a rental property, check out our Edmonton MLS for all the latest available homes for sale in Edmonton and all the nearby areas. High-speed, easy access, that’s what you’ll get from Team Leading Edge.
For more from Team Leading Edge, follow the team on Twitter at @teamleadingedge. Make sure to subscribe to Team Leading Edge to get newsletters on the Edmonton Real Estate market.
Note: Remember, you can access all our available Homes For Sale in Edmonton through our Edmonton MLS Listings page.
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