Sometime you
are better off Renting
We have been led to believe that you are always better off
buying real estate than renting, but for some, renting is a better option.
Historically, Real Estate prices increase over time but
capital appreciation should never be the primary motivating factor influencing a
buying decision – after all, your home is, principally, your home – and
besides, real estate values have also been known to fall.
Make a purchase decision based upon how you feel about the home that you
are looking at, without appreciation expectations.
When his renting better?
If you are not sure whether Toronto is going to be your
permanent home or if you have a career were you may be transferred to Europe or
America, or if your income fluctuates from year to year, renting is usually the better option. Historically, real estate has
appreciated gradually, often no more then 3 percent per year. Those who had to sell within three years from purchasing were
lucky to break even, after paying real estate commission, closing fees and other
expenses. Recently, real estate has
been appreciating like 1999 .com’s and condominiums in the late ‘80s.
Nobody knows how long this appreciation will continue but one thing
everybody knows for sure is that the market will eventually cool down and
possibly start to decline in price. For
this reason, find what you like and be prepared to stay there for a reasonable
period of time – ideally at least five years – and likely you’ll be able
to get her money out, possibly even with the profit.
The
bottom line is: if you are unsure, Rent!