May 11th 2016
So you want to move out of your parents place but not sure which direction to take - should you rent or buy? It’s a big decision, one that you should spend some time carefully planning, weighing the pros and cons of both options. My personal opinion is buying is always a great idea if you can afford it. However, the short term benefits might outweigh the long term benefits for you depending on your own personal financial situation.
The good thing about renting is you can often find a place in a short span of time. If you are on a time crunch to get on the move, renting may be your best option. Also, the responsibility factor of renting can be low. Most of the time any maintenance or major repairs will be covered by the landlord or Property Management Company you are involved with. The downside when dealing with a landlord and tenant scenario is if something in the rental goes wrong. My own personal experience with landlords has been a positive one however, I’ve seen and heard some horror stories!
The major negative to renting is you are paying someone else’s mortgage for them. Every month when you hand over your rent cheque you are putting money towards a property that is not yours therefore, the return on that money is essentially non-existent. You should consider rent you are paying could be the same amount that you would otherwise be putting towards your own property if you were to own. If you are financially able and feel responsible enough to get into the real estate market, my own opinion would be to go for it! The money you pay each month towards a mortgage is just that much more of the home you are actually owning! You are putting your money towards an investment and building an asset you can call and make your own! The responsibilities in owning will be higher with repairs and up keep but it’s nice to know the improvements you are making are adding value to “your” home, not someone else’s.
If you are looking to move, take the time to weigh all of your options. What is best for you in your current situation? Should you hold off and save more money to buy? Is the rent you’re paying low enough that you are still able to put money aside each month to buy property in the future? Not everyone’s life and financial situation is alike, so do what is best for you!
Written by Amanda Perkins