I’m often asked, should I rent or should I buy.

It would be pretty straight forward if you only had to consider your mortgage payment.

I truly believe there isn’t a one size fits all answer to this question.

That said, I’ll do my best here to provide some food for thought.

Before I get into the pure dollars & sense of it all, you have to look at some of the intangibles that aren’t as easy to measure as the numbers.

Things like –

  • Where can I buy, distance from work, types of schools, neighbourhood etc etc…??
  • What can I buy, how much, how old, how big etc etc…??
  • What am I renting and for how much??

After getting past all the personal preferences, and I’ve seen many, one can then start to look at the numbers.

Even the numbers aren’t as simple as you may think.

One of the most significant variables and question marks affecting this part of the equation is a BIG unknown, your eventual SELLING PRICE.

Obviously the higher the selling price, the more buying makes sense. In the past, when the market was in a BIG upswing, estimating this part of the equation was a lot easier.

Moving beyond what we can’t control, lets look closely at all the costs that you may want to consider before purchasing a home in Vancouver.

  • Real estate commissions paid when you eventually sell
  • Initial Purchase Price
  • Maintenance Cost for the Time of Ownership
  • Interest Paid on your Mortgage
  • Investment Gains from Your Down Payment had you invested it instead
  • Taxes Paid Such as Property Taxes etc…
  • Closing Costs
  • Eventual Selling Price

Even after you add up all these factors and compare them, you still have what I call the priceless variables, mentioned above, that often sway buyers one way or the other.

One of the MOST important factors for me is knowing that my clients can afford their monthly mortgage payment WHILE still being able to enjoy their life.

I would also suggest that you get into the market for the right reasons. If you’re getting into the current market as a speculator, often times things get turned upside down very quickly.

As you can see, there’s a lot more to buying a home than just great rates.

For the right advice at the right time 604-273-2002

Mark Fidgett is a Vancouver mortgage broker and the driver behind www.NotaPennyDown.com

Your Vancouver Mortgage Broker For Life

www.notapennydown.com

604-273-2002

P.S. Who’s the next person you know who wants to save thousands off their mortgage?
Be sure to give me a call so we can help them!
604-273-2002