Mohit Grover

Purchasing a New Home versus Renting a Home

A new home purchase is a significant investment.  Whether it’s buying to build equity and provide nest eggs for the future, or renting for cheap upkeep and mobility. This is an interesting time to choose whether to make a New home purchase or a rental purchase. If you live in Canada, Mohit Grover can help you balance the benefits and drawbacks of renting versus first-time home buyer.

Rent a house

The most common misconception about the rental purchase is that you waste money every month. This is not correct. After all, you need a place to live, which always costs money in some way. While it is true that monthly rent payments do not develop equity, not all property ownership costs are used to build wealth.

Owning a House

The benefits of owning a new home purchase are both tangible and intangible. Not only do you become a first-time home buyer and have control over its style and decor, but you also gain a sense of stability and pride in belonging.  However, keep in mind that real estate is an illiquid asset, and making a decision about where you reside can be very costly. You may be unable to sell when you desire. Even if you do, you may not be able to get it at the price you like, especially if the property market is in decline. Regardless of the rise, there are considerable transaction charges associated with selling your home.

Can I finance the new home purchase ?

When you’re simply thinking about house payments, it’s simple to say “yeah, definitely.” However, housing expenditures include much more than just a mortgage. You just pay the rent when you rent. There are no property taxes, HOA fees, or payments to the landscaper for grass mowing, snow removal, or spring and fall cleaning. That’s it.

Freedom and Commitment

Rental Purchase allows you the freedom to move. However, if you do not want to move, living in a rented apartment can be inconvenient if you are requested to do so. Your rent may be set to expire, you may desire to move, or your owner may sell the property and request that you leave. Rents are also rising, and if your income does not rise in tandem, you will be compelled to drive to the outskirts of your city in search of a cheaper place. First-time home buyers provide you and your family with independence and security, as well as financial appreciation.


When it comes to a new home purchase, the cliché of establishing roots is accurate. Owning your house provides a level of stability that a rental does not provide. It provides peace of mind when you intend to stay in the same spot for an extended period of time. However, it is not suitable for everyone’s lifestyle. If your employment or other circumstances necessitate frequent relocation, renting flexibility may be preferable to a mortgage deal.

Alternative investing opportunities

Being a tenant does not preclude you from investing in your future. The rental purchase allows you to save money that you can invest in the stock market, your own education, or start a business. If you work hard and are lucky, some of them can pay even more than buying a home!

Building up equity

When you have a mortgage, each monthly payment you make aids in the development of your home’s equity. While a portion of your mortgage payment is used to pay interest, the remainder is utilized to pay the principal on your loan. Interest will make up a larger portion of your mortgage payments at the start, but this will reduce with time.

Is it preferable to rent or own a home ?

There is no definitive answer as to whether renting or owning a home is preferable. The answer is determined by your specific situation, including your resources, lifestyle, and personal ambitions. You must consider the advantages and disadvantages of each based on your income, savings, and style of life.

Is buying a house a good investment ?

A new home purchase can be an excellent investment. You might be able to accumulate equity. However, just like any other investment, the performance of your investment is determined by a variety of circumstances. When it comes to real estate, location, economy, maintenance, and environmental concerns can all have an impact on the overall value. Remember that nothing is ever static, thus everything might change.

Is it cheaper to buy than to rent ?

The expenses of renting versus owning are heavily influenced by where you reside and the local property market. Most rental homes demand a security deposit to safeguard the landlord from tenant harm. You usually pay the first and last month’s rent when you sign the lease. Inquire about the inclusion of utilities like water, electricity, gas, and internet in the monthly rent while evaluating a lease. Determine how the security deposit will be held and how the interest will be earned.
The monthly mortgage payment is one of the most significant housing costs for the first-time home buyer. This comprises both the loan’s principal and interest, and it can vary over time if you have a variable rate of interest. Mortgage payments may also rise or fall in response to changes in property taxes or homeowners insurance costs.
Choosing whether to make a new home purchase or a rental purchase is a financial choice with many variables and long-term implications. Thinking about how long you intend to stay in your new property, as well as your finances and budget for unexpected expenses, will help you decide whether to rent or buy your future home.
Your income, lifestyle, and a range of other factors all play a role in determining the best fit. The best financial decision you can make may be to take the little step of consulting with a reputable mortgage lender like Mohit Grover as doing so will enable your family to make regular home payments toward your own asset rather than your landlord’s net worth.

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