Contrary to what you may believe, renting rather than owning is not necessarily a bad decision. There are many pros and cons to both renting and buying; it all really comes down to personal preferences and finances. People tend to drain themselves financially in order to purchase their first home. They’ll then leave themselves in a pile of debt, living paycheque to paycheque and not having the savings needed for any additional work that may need to be done to the property.
Here are some reasons why you may not be ready to buy just yet:
Employment – If you don’t have steady work with a steady income, you’re probably going to have a hard time due to the financial requirements of home ownership. Unless you have enough money in your savings account to cover expenses, it’s probably best not to look into home ownership just yet.
Relocation – Some people have jobs that require them to relocate on a regular basis and some people just get bored of their home surroundings easily. If this is you, you probably shouldn’t invest in a home. The value of a property can change sporadically and you may be losing money if you sell too quickly or at the wrong time.
Budget – Yes, everyone has heard the “rent is the same monthly cost as a mortgage payment” line before, but people forget about the other costs associated with home ownership that renters don’t have to worry about. Things most home owners pay that renters don’t are home insurance, property taxes and utilities.
Savings – You’ve decided to purchase a home with all of your savings but now you’re short money for surprise repairs to the property! When buying a home, you should always have some kind of savings as a backup for any type of emergency such as loss of employment or surprise damage to your home.
Financially Responsible – If you’ve never had previous experience with budgeting your own money, you’re probably not ready to buy a home. Owing a home takes a lot of preparation and self-control to budget your money wisely especially when planning for any future emergencies that may arise.
Debt – If you’ve been carrying credit card and loan debt and have been having trouble paying it off, buying a home is probably not the best choice to make as it will create more unmanageable debt. A mortgage is one of the biggest debts anyone can obtain and if a credit card is unmanageable, you wouldn’t survive a mortgage loan!
Maintenance – If you’re not a “handyman” type and have no interest in learning about the maintenance and upkeep of your furnace or water heater, owning a home is probably not the right choice for you. There are numerous tasks and items in the home that need to be maintained on a regular basis.
Affordability – If you just can’t afford what you want in a home or the location you want to live in, then it’s probably best to rent until you are able to financially do so. There is no logic behind buying a home if you’re not happy with the home itself or where you’re living.
The bottom line is that you shouldn’t be putting yourself into financial trouble for home ownership. Ideally it will make financial sense but if you can’t afford it, you just can’t afford it!
Are you interested in talking to us to see if home ownership is the right choice for you? Give us a call at 416-572-1380. We’d be happy to help!