Jul. 14, 2010

Which Option to Decide Upon - Buy or Pay Rent?

Almost every youngster dreams about growing up, having a successful career, buying a great property and having an amazing family. Many of us dreamed of having our own property, unluckily that dream may not be as achievable as it once was. Renting a property also comes into consideration, as well. Looking at the long term, purchasing is always going to make more economical sense than paying rent. Whether buying your property or renting, they have their own advantages as well as disadvantages.

Choosing to rent is far the easiest way of moving out of your parent's property. It is quite simple to rent once you have found the house you like, just a matter of signing contracts with the landlord. You move in and you live there for as long as you keep the agreement for. A security deposit is often payable, but after that you pay the rent decided upon. A big advantage is repairs - so the water pipe bursts, instead of expensive repairs out of your pocket, it's up to the landlord to pay for them. New windows, a new heating system, air conditioning or any other improvements are usually the responsibility of the landlord. The biggest downside, is possibly the fact that the place is not your own and it is very likely that you will have to move out in the long run. Frequently you do not have the rights of when you have to vacate the property. Living in a house for a period of time makes it feel like your home, so it could be upsetting if you have to vacate it. Certainly if you are one of those individuals that enjoying moving, then this would be an bonus point for you. You have no home to sell, no worries about making the home nice for potential purchasers or the fees associated with selling. A big downside is if you want to make some considerable changes in the place, you have to ask for permission off the landlord.

To start off with it could be difficult. You would need to find a suitable loan business for a mortgage and after it's accepted it will take years before you are clear of debt. Then after the purchase itself, you may want to decorate the building to your own particular taste. Including the mortgage fees, you have to pay fees for the property, all the improvement and maintenance costs and also home insurance. Still, you are the proud titleholder. The property is your own and if you want to refurbish it or change something, you just do. Apart from some cases where you may need planning permission and consent from the neighbours, you do not have to ask anyone before you do anything to the building. A word of caution though, what seems like a small repair or redecorating task can turn out to be rather expensive. Moving house is not going to be easy compared to moving from rented homes. A big downside is you are going to need to sell the property or rent it if you decide you want to move somewhere else. There is a need to wait for good market conditions, but it may take quite a long time. However, as somebody, who specializes in one of the most stunning areas in Toronto - Bridle Path Toronto - I can tell you with property ownership can be felt a very special taste!

If you do not want to settle down for years and plan to move away in the near future, renting is better than buying, especially if the rent is not very much. The monetary outlay of buying a property takes at best a couple of years to start paying off. You are unlikely to see any perks, in fact everything feels like it is costing you at the beginning.

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