We all need a place to live. Some people enjoy the freedom of living in an RV on the open road, others can couch surf or camp under the stars with nothing but a tent and a backpack. But most of us like having a home base with four walls and a roof that we can fix up to our liking and nest in. In other words, a place to call our own.
Assuming you fall into the latter category, you may be on the search for a place to live. And in your searching, you’ve likely stumbled across the one common debate that rages on for people looking to put some roots down, and that is whether to buy or rent your home. Assuming you have access to enough money for a down payment on a place, there are some things to consider on both sides of the white picket fence.
For many people, it is a life long dream to buy a home, and while most investors and realtors will often advise a person to get a slice of the real estate market, there are certain considerations to take into account before making that commitment. Because that’s exactly what buying a house is, a commitment. Sure you can pack up and leave if you need to but purchasing a home is usually a decision that should be made with a long term vision.
The first thing you should decide is what kind of home you want to live in and for how long. The longer you plan to stay in a home, the more cost effective it is to buy because all the initial up front costs are spread out over the years. Not only that, owning a house that you’ve lived in for a long time will likely increase in value so if you decide to move, you have a major asset to cash in on.
You will also want to consider the state of the real estate market and what long term trends your area has. Information about real estate in your area can be found online and if you are thinking about buying when the market is red hot, you might want to think about letting it cool down. Market adjustments happen all the time and it might be a good idea to discuss your plans with a financial advisor.
Your decision also depends on your situation in life. Perhaps you and your partner are looking to start a family and want to raise your children in the perfect home. It might be a good idea to rent something modest initially, so that you can come up with a larger downpayment down the road.
Renting is definitely the right choice for some, and it largely depends on supply and demand. If there aren’t many rental units available, then the price of what is out there might reflect that and you might end up overpaying on rent. However, when you do rent, you are not on the hook for condo fees, maintenance and repair, property taxes, and all the other expenses that come from home ownership.
Of course the big downside to renting that people will point out is that you are putting money in someone else’s pocket. But the truth is, we have to spend money on living—you are going to pay a certain amount daily to live somewhere, whether you rent or own. And if your living situation is somewhat short term for whatever reason, renting might be right for you.
If you choose to live in a town like Estevan, Saskatchewan, where jobs are stable and the economy is in good shape, you have the luxury of taking the time to sort out which option is best for you. If you have any questions about whether you should rent or own, we would love to hear from you. Like us on Facebook to stay up to date with Estevan Rental Properties.