If you think you’re going to live somewhere for several years, and you want to “settle down,” it makes sense to buy rather than rent. In larger cities, especially, it’s cheaper (by 10 – 35%) to buy than rent.
When you rent a place, you’re spending money that you won’t get back. If rent is $1,000 a month, that’s $12,000 you’re saying goodbye to in one year. If you buy a place, though, you can pay a mortgage toward owning it, and should you stay there a long time, eventually you’ll own the place. Then, if you choose, you can re-sell it, and, if the market conditions and neighborhood are “good,” you can potentially make a profit. A $100,000 home today could be worth $200,000 in ten years. Is it a bit of a gamble? Yes. But it’s better to own something and possibly make money selling it later on, than to just spend, spend, spend for rent, only to have to leave eventually and be forced to find another place to live.
Consider this: you rent an apartment for $1,000 a month and stay there ten years of your life: you’ve spent $120,000. Wouldn’t it make sense to have bought a place instead? Yes.
If a city has extremely expensive houses for sale and fairly cheap-but-nice apartments for rent, then consider renting a place. This, however, is the exception in most places. Generally, rents are quite high in most places, making it cheaper to buy.
Realtor Alexis Hlady can answer any questions you have about buying versus renting in the Greater Edmonton area. Call her today at 780-483-4848 to discuss your real estate needs.
Post by Alexis Hlady
