In this market: should you rent or buy?
The extremely tight rental market in Calgary has been making headlines lately, as more and more Calgarians are struggling to find places to rent or even afford. Due to the rental crisis, more people in our city are looking towards homeownership. If you are contemplating between renting or buying a home, here are some questions to help you decide.
- Can you afford it? this is the biggest and most important question you need to ask yourself. The way rental rates are going right now, in the majority of cases it is more affordable to pay a mortgage than it is to pay monthly rent. If you can afford a mortgage, it is always a better option to build your own equity than to pay off someone else’s mortgage. When asking yourself this question, keep in mind that you don’t just need to consider the amount your monthly mortgage would be, but also if you can afford a down payment. There are still options for paying less than 20% down for a mortgage, with the help of mortgage insurance programs. Feel free to ask me about this if you have questions.
- Are you financially secure? aside from monthly mortgages and down payments, you need to keep in mind having enough money to pay for the ongoing costs of homeownership, like insurance and home repairs. You will also need to have good credit in order to qualify for a mortgage, so being financially secure will be important in making this decision.
- Are you willing to be your own landlord? when you are a homeowner, you’re on the hook for everything that comes up with your home. That includes things like home maintenance, home repairs, etc. Be sure you can handle this mentally and financially before you take the plunge.
If you want some one-on-one advice about your particular situation, feel free to reach out to me through my website, or on Twitter
