When moving out for the first time, people will always struggle with the decision of whether to rent an apartment or buy one of their own. There is a common misconception that buying is always the safer choice. Many view it as not only a purchase, but an investment. Will buying always save you more money than renting though? Well there are certain factors that you need to consider in order to better answer that question.
Obviously current rental prices can be a big determinant as to whether you would want to rent or buy. The higher the rental prices at the time, the less likely you’ll want to rent. Especially if rental prices are substantially higher than the cost of buying your own unit.
Time-frame can also affect your decision. Depending on the amount of time you plan on staying, renting a property may be more economical. If you plan on staying in one apartment or house for a long period of time, then buying may be the better option. If your plans are short-term though, renting an apartment or house will require less commitment both in terms of time and in terms of financial commitment.
Interest rates and Mortgage Length
Interest rates are extremely important for first time buyers. The higher the interest rates, combined with a longer mortgage length means you’ll have more money to pay back on your loans. A large down payment will decrease both the loan amount as well as the mortgage payments but money conscious first-time buyers may not be able to afford a large down payment.
With many condominiums being raised in metropolitan areas such as Ottawa and Toronto, there are plenty of units available. The question of renting or buying is obviously a big decision. Research and planning are vital to make sure you end up spending your money wisely.
Here’s an article that goes into more detail and may help with your decision.
For information on rental listings in Ottawa or other Ontario or Quebec areas, don’t hesitate to see what we have available at www.clvgroup.com!