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 ?
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.
Stability
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!
