Is home ownership for you? You need to look at much more than the cost of rent or a mortgage payment to know for sure.
A quick comparison
| Renting | Buying | |
| Costs | Likely lower monthly costs Fixed monthly costs Pay a deposit of a month’s rent May pay a deposit for damages | Likely higher monthly costs with mortgage, property taxes, utilities, maintenance, furnishing and decorating Pay interest to the bank on mortgage Possible unexpected repair costs |
| Investment potential | Rent money goes to your landlord | Build equity as you pay off mortgage |
| Income potential | May be able to create income by renting out rooms or subletting | Can create income by renting out or borrowing against your home |
| Maintenance | Not responsible for maintenance, but dependent on landlord to make timely repairs | Responsible for maintenance and repairs |
| Commute | Higher rents in prime areas but you save time and money on commute | Affordable houses in suburban areas mean you spend more time and money on commute |
| Flexibility to move | Can move out almost whenever you want | Harder to move quickly as can take time to sell May face a mortgage penalty |
4 questions to ask yourself
- What kind of housing are you looking for?
- How much can you afford?
- How soon do you think you’ll move again?
- How important is home ownership for you?
