Is home ownership for you? You need to look at much more than the cost of rent or a mortgage payment to know for sure.
On this page you’ll find
A quick comparison
| Criteria | Renting | Buying |
|---|---|---|
| Costs | Likely lower monthly costs Fixed monthly costs Pay a deposit of a month’s rent May pay a deposit for damages | Likely higher monthly costs with mortgage, property taxes, utilities, maintenance, furnishing and decorating Pay interest to the bank on mortgage Possible unexpected repair costs |
| Investment potential | Rent money goes to your landlord | Build equity as you pay off mortgage |
| Income potential | May be able to create income by renting out rooms or subletting | Can create income by renting out or borrowing against your home |
| Maintenance | Not responsible for maintenance, but dependent on landlord to make timely repairs | Responsible for maintenance and repairs |
| Commute | Higher rents in prime areas but you save time and money on commute | Affordable houses in suburban areas mean you spend more time and money on commute |
| Flexibility to move | Can move out almost whenever you want | Harder to move quickly as can take time to sell May face a mortgage penalty |
4 questions to ask yourself
- What kind of housing are you looking for?
- How much can you afford?
- How soon do you think you’ll move again?
- How important is home ownership for you?
Summary
If you’re considering between renting or buying, make sure to choose what’s right for you and consider the differences for the following factors:
- Costs
- Investment potential
- Income potential
- Maintenance
- Commute
- Flexibility to move
