Buy or Rent?
The age old burning question of ‘should I buy or rent a home’. It has probably crossed most peoples minds at some point during a home search journey.
There are many factors that come into play when determining the wiser of the two options in Thunder Bay.
Some considerations to keep in mind when deciding to either buy or rent might be;
- Are you new to the area, and uncertain of where exactly you might want to live within Thunder Bay? Sometimes, if you aren’t sure of the different areas, it can be a good idea to rent for a bit to get a better feel for things, at the very least, until you find a Realtor that you are comfortable working with and whom you can count on for guidance.
- Are you planning to live in your home for a few years? Or could your circumstances change within the next year necessitating another move?
- Do you have at a very minimum 5-10% saved up for a downpayment, and also funds set aside of closing costs and miscellaneous moving costs.
- Is your income sufficient enough to also allow for ongoing maintenance and repairs on a home. Budget 1-2% of the purchase price of your home, conservatively, per year, knowing that larger expenditures might crop up that will necessitate either repair or replacement, such as the furnace, shingles, etc.
- Is your employment stable?
- What is your lifestyle like?
These are all very important considerations when evaluating whether it makes more sense to buy or to rent.
Which metropolis you live in also plays a major role the decision to buy or rent. If you are looking at home ownership in Toronto, or Vancouver, where home prices are sky rocketing on an almost daily basis, it might make more sense to rent.
However here in Thunder Bay, home ownership remains very affordable in comparison to other larger Canadian centres, while rents are quite high.
The choice is yours… which will you or would you choose in Thunder Bay? Buy, or Rent?
Great article. I would add to ask the question. Are you someone who is comfortable maintaining a home and doing repairs getting or would you rather renti and leave those responsibilities to a landlord who maintains the roof etc.? There is a freedom in renting and also a freedom in ownership but this is something to also consider when weighing the options . And of course if you are someone who travels a lot renting might be a better option in that case. 🙂
Absolutely- very good feedback! Repairs and ongoing maintenance are certainly huge considerations when considering purchasing a home. Not everyone has the desire to commit to the expenditure or to coordinate the actual repair, even though they may be financially capable of doing so. You are right- there is freedom in both options depending on each individuals needs/ desires/ viewpoints. Interesting!