Buy or Rent?
Good question. Well, one way to quickly determine your answer is to ask whether you have least 5% down payment and closing costs for a house?
If not, renting is a good option. It may beat living with mom and dad for the rest of your life! Even if you love them very much.
Most financial institutions and private lenders will not lend 100% of the purchase price. You need to show a financial interest in the home, so that the lender feels confident that you are not just going to walk away if money gets a little tight. If you are not able to buy this way, there is the rent-to-own option. However there is still a down payment required and interest rates will be higher.
Some of the types of renters are:
- Folks without the 5%
- Retired folks that are not interested in owning any longer
- Folks experiencing financial difficulty (This can happen to ANYONE)
- Seasonal renters, for ski seasons or summer holidays
- Young couples or families, not sure about where life is taking them
- Those who relocate, (i.e. the military, new jobs, etc.)
- People who just don’t want the responsibilities of owning
These are just a few benefits of renting :
- You do not have the liability of ownership
- You do not have to maintain the buildings or grounds
- You do not have the fix anything that wears out or breaks. (Unless, of course, you broke it!)
- You do not have to cut the grass unless it is in your rental agreement
- You do not have to do the snow removal unless it is in your rental agreement
- If something happens to the building you do not have to deal with it
- If the building needs upgrading, it is not your expense
- You are not responsible for paying the taxes
- You are not responsible for paying the building insurance
- You do not have to come up with 5% down to live there
- You may only need the home for a short term and don’t want to have the hassle of selling
- You may be retiring and only need it for a few years, before going into a retirement community
- You may not be able to find just the right house, instead of buying the wrong house, rent short-term
These are just a few reasons why renting may be the best option for you. Homes come up for rent on the market all the time as do folks looking for rentals. I get calls for both periodically. There are many ways to get the word out you are looking to rent a home.
I can help you start looking for your next rental home. Whether you are looking in the Clearview, Creemore, Stayner, Wasaga Beach, Collingwood, or Mulmur township, I can help you get the ball rolling. It can take some time to find the one. Start as early as you can, so you don’t miss out on a good deal.
I do property management too. If you need help deciding whether to buy or rent, or if you need help finding rentals or renters, give me a call today.