When it comes to owning a home, many people prefer buying a home above renting. While both demand investment, yet handing over a monthly rent check, rather than making a mortgage payment sounds like throwing money out of the window. Though disheartening, at times you might be doing yourself a favor by renting.
Renting In some cases is a smart alternative to buying and can actually save you money. Read on the factors underlined below to get some insight on this.
Renting costs are low – It might sound senseless to buy a home, if your mortgage payment comes out to be many times more than the amount you pay for rent. For example, if it would cost you $2,000 a month to Rent Apartment In Toronto and $6,000 per month to own it, what would you prefer?
Job Stability – With the unstable nature of jobs today, people are always on a hunt for better job opportunities. So there is always a possibility of relocation. The last thing you want to do is to start making payments on a home only to find out you are being transferred across the country. Secondly given the current economic situation, job stability is not guaranteed. During stressful days of job loss or pay cuts one can manage with small Toronto Apartments rent checks rather than lump sum mortgage.
General Considerations – Making the switch from renting to buying is a serious decision. In addition to borrowing concerns, you should factor property taxes and maintenance costs into your budget. Be thorough in your calculations to determine whether it makes sense financially for you to purchase a home. For instance, if you can rent Toronto Apartments for $24,000 a year and its mortgage payments would run you $48,000 a year, it may be smarter for you to rent and invest the money you would otherwise be paying in loan interest.
There are pros and cons to both buying and renting, so make sure to weigh your options objectively in order to make the best decision for your situation.
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