Tidbits about Buying a Home

Posted by Gurpreet Ghatehora on Saturday, August 16th, 2014 at 6:19pm.

Buying a home is always exciting – but also nerve wracking and maybe even a little stressful (okay, a lot stressful!). The good news is that it is one of the smartest things you can do with your money. Not only is it a great long-term investment, but it’s usually far more affordable than renting.
Now you may be thinking, how can buying a home be more affordable than renting? The truth is, once you get the initial process of buying a home out of the way, that is, handing over your down payment, paying your lawyer etc., the actual amount of money coming out of your pocket each month will be less than rent. Take this with a grain of salt, however. How true this is will depend on whether you are a first time home buyer or not, and the size, quality and location of the home you buy. Generally speaking though, it will all be relative. What this means is that if you were to rent a 5 bedroom home in a major city, you may pay thousands of dollars in rent, plus utilities, each month. If you were to buy that same home, you may see a significant monthly savings, or only a minor one. On the other hand, if you were to rent a 2 bedroom apartment versus buying one, you would likely notice a huge difference in the cost of living.
Smaller homes and apartments (1-3 bedrooms) are prime rental properties. In major cities there is usually a high demand for them, which drives up what can be charged for rent. If you were to buy one of these places, you may notice that your mortgage per month costs you hundreds of dollars less than what your neighbours may be paying for rent.

Leave a Comment