For anyone moving out of their parent’s home or moving out of their former place of residence, the question may beg: should I find a place to rent or should I buy a place and pay a mortgage on it? The choice you make may be a situation choice, for example, if you’re moving out of the city for school or an internship with no intentions on remaining in the city long-term, then renting remains a viable option. However, for those willing to settle down and find a place they can be proud to call “home,” we recommend buying over renting. Here are a few things to consider when looking for a house to buy:
You Won’t Build Equity by Renting
Equity is the amount of your home that you own. Although in most cases you will have a mortgage that surpasses 15 years (if you are willing to pay it off as soon as possible) or more typically a 30-year mortgage. You are still working towards owning the house and if you ever decide to sell or move the return on investment will be much more plentiful than if you decided to rent. If you rent a house, most times you’ll be working towards paying for someone else’s equity, so you might as well make some for yourself.
The Freedom of Design
Renting a property can be attached to plenty of red tape in terms of internal and external customization, and there will not be much leeway for you to make any adjustments to the house. When you rent from a landlord, they may have the final say on household amenities such as light fixtures, painting, and home renovations. When you purchase a house, you are free to express yourself with no restrictions.
More Financial Stability
Renting a home typically comes with a 1-2-year lease that will most likely increase at the end of your term. When your lease expires you are pretty much left with two options: resign the lease at an increased rate or find another place to live. Another possibility with renting a home is that the landlord has the right to sell their property leaving you at risk of eviction if the new owner plans on settling in different tenants or possibly using the property for non-residential reasons. Mortgage rates that are available for homeowners can vary as well, but you’ll be able to make fixed-rate plans for 5 or more ears which will provide you with much more financial stability and allow you to plan your finances accordingly.
Buying a house is a huge commitment and giant step to take in life, but the ability to accumulate equity, the freedom to express yourself through the interior and exterior design and more financial security provide more value to individuals and families looking for a home than renting does. For more information on availabilities in Carman, Manitoba, contact Royal LePage Carman today! We can’t wait to help you find the home you’ve always wanted.