Posted on: 07-08-06 10:39:29
can anyone explain the main benefits
of which one is better renting a house or buying
especially for new comers
can anyone buy property which is equivalent to their monthly
rent that they pay???
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akkiluck
This is a million dollar question. Here are a few links, from simple to academic, that you may like to read before making a decision.
It is almost always advisable to pay mortgage/installments rather than rent, all other things being equal.
If I were you, I would buy a house.
http://www.canadiandesi.ca/articles.php?SID=4
http://www.canadiandesi.ca/article.php?AID=67&SID=0
http://www.cmhc-schl.gc.ca/en/co/buho/index.cfm
http://www.cmhc-schl.gc.ca/en/co/reho/index.cfm
http://biz.yahoo.com/pfg/e10buyrent/
http://www.ces.ncsu.edu/depts/fcs/housing/pubs/fcs426.html
http://www.economics.pomona.edu/GarySmith/BuyRent/BuyRent.html
Wow! LD you have done some good research. Especially the last link from Economic Professors is a great analysis. Keep it up.
Over the course of 25 years (usual amortization period for many home buyers), the total amount of money paid by many renters can actually exceed the amount paid by a home owner. This is due not only to the fact that mortgage payments can be cheaper than rent, but because rental fees generally increase over the long term. Interest rates may also rise, but so will the value of the property. Therefore, additional equity can be gained.
The reality is that after the mortgage has been paid off, homeowners no longer make monthly mortgage payments (P+I) while renters continue to bear the burden for the rest of their lives. This savings can greatly impact ones quality of life upon retirement.
The fact remains that money spent on rent is still money down the drain.
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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
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