As a first-time home buyer, it is important to understand what homeownership involves.
One of your first decisions is whether home ownership is right for you. To many, buying a home and making it your own is a part of their life goals. However, it is important to take into consideration the benefits as well as the risks involved.
Renting vs. Buying
There are pros and cons to renting and buying a home. Often driven by finances and lifestyle, people must decide which option is better suited to their situation. Let’s take a look at the differences between buying or renting a home:
Renting offers tenants flexibility. Unlike owning a property, tenants are under limited obligation to stay once the lease is up and the terms of the agreement are met. Leases typically come in one year increments and then go month-to-month. This is a great way to explore different areas and know what neighbourhood best suits your needs.
Renting also offers stability, where rental rates are fixed for the agreement term. This allows tenants to budget and plan accordingly with no hidden surprises regarding their living situation. Rent increases can occur at the end of the lease term, but there are rules in place that ensure the increases are increased within reason.
Unlike renting, buying a home is a longer-term commitment. While renting offers flexibility, home ownership offers stability. A home or property can be a great investment in your future, as property values typically appreciate over time, building equity and aiding in financial security later on.
Owning your home allows you to modify your property to suit your needs and wants while the long-term investment is stable. There are more expenses with maintaining your home, but the benefit would be increased property value. Homeowners also enjoy certain benefits, such as mortgage tax breaks and renovations. Lastly, there is a certain pride that comes with owning a home. Recent years have shown us how important our home is to our everyday lives.
Have questions? Contact one of our Right at Home Realty sales professionals today!