4 Questions to Help You Resolve the Renting Or Buying Dilemma

Posted on Monday, June 15th, 2015 at 12:34am.

Prime Edmonton Real Estate - Buying a home can certainly be a difficult, tedious, lengthy and tiring process. Well, you certainly should seek for proper consultation from a real estate expert who knows the housing market quite meticulously. Additionally, the decision of buying a home requires one of the biggest financial investments and the process can possibly be empowering and exciting, only if you have enough knowledge regarding the home buying process.

There are a variety of ways to learn about the process of buying a home and the responsibilities of homeownership. When you hire a real estate agent, you not only educate yourself about what it takes to buy a home, you also get a stronger understanding of your own emotional and financial readiness to become a homeowner.

Here are some questions that will help you to get over the dilemma of whether you should buy or rent a house: 

  1. How Can You Compare Home Prices and Rents in Your Community?

When you look at the cost of buying a home you need to include not only your mortgage principal and interest payments, but also homeowners insurance, property taxes and possibly a condo or homeowner association fee. Few of these mentioned considerations are not required while comparing rental prices, except for the monthly homeowner fees.

Sometimes it's more costly to rent than to buy, particularly when mortgage rates are low. A professional real estate agent can help you in evaluating and determining whether you should rent or buy a house. You should look at the long-term wealth-building benefit of homeownership that comes with rising values and increasing your equity as you pay off your home loan.

2. Do You Have Enough Savings?

There are loan options to some borrowers that requires to pay a down payment. While buying a home, you'll need some cash for a deposit, a down payment, closing costs and an emergency fund. Therefore, if you don't have enough savings, you can always be explicit while seeking professional advice from your real estate agent. The process of renting a house is not as complicated as buying a house, but you certainly have to deposit some cash before moving.

3. Are You Emotionally Ready to Buy A Home?

One of the benefits of renting an apartment, a condo or a single-family house is that you typically only commit to a lease for a particular period of time. You don't have to worry about the neighborhood or your neighbors when you rent a house. Likewise, if you're planning to buy a house in Edmonton, you'll need to consider crucial factors like the neighborhood, resale value of your house after a number of years, a school in neighborhood if you have kids, etc.

4. Are You Ready to Take Care of Your Home?

You must ask this question to yourself before you think of buying a home. There are many costs that leap in as soon as you move into your new house. Of course, you will spend quite a much initially, while furnishing and decorating your house but you will not have to spend again and again for the same cause. Additionally, you also need to consider various repair costs that can appear regardless of your orderly maintenance. In order to maintain your property efficiently, so that its value and quality does not deteriorate, make sure you don't avoid small repairs because it will only add up later in the future and cost you even more.

When you get detailed and reasonable answers for all of these questions, only then will you be a in position to think about buying a house. A real estate agent or a lender can certainly help you make the right choice determining if you're ready to buy now or you need to wait a little longer to become a homeowner.

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