Rent vs Buy: Newlyweds should ask themselves these 5 questions

Rent vs Buy: Newlyweds should ask themselves these 5 questions

By Ilan Joseph, Broker, ABR®, e-PRO®, AMP® | TopTorontoAgent.ca
June 24, 2103 | © All rights reserved

[caption id="attachment_3255" align="alignleft" width="341"]vaughan couple getting house keys Toronto, Vaughan & Thornhill couples have 5 questions to ask themselves.[/caption]

Should we rent or is it time to Buy?

Getting married is one of the most exciting times in a person’s life. The first year is full of ‘firsts’, including your first home together as a married couple. It seems as though everyone in Toronto, Vaughan and Thornhill is getting married, and with that comes the question, “Where are we going to live?” Deciding whether to buy or rent a home will depend on a number of factors.

Here are 5 questions to ask prior to making a decision of whether it’s best to Rent or Buy.

#1

Where will we be in the next 5 years? Lifestyle factors like school, careers and family are generally the biggest contributing factors when answering this question.  If you plan on many changes in the next 5 years, perhaps it may be best for you to rent – certainly if you don’t plan on staying in a home longer than 2 years. Buying a home in Toronto, Vaughan or Thornhill as an investment is a great way to build your wealth, but having to prematurely sell it could leave you paying more than you should, quickly depleting any appreciation in value the home may have gained.

#2

How is our credit? By now you both should have already discussed what debt you may be coming into the marriage with. By doing this, you should have a good understanding of where you both stand when it comes to your credit bureau (your credit report and score). There are some great incentives and tax benefits with home ownership. Home owners with a mortgage can deduct the mortgage interest paid as well as the property taxes every year.

#3

toronto couple shopping vaughan and thornhillCan we really afford it? There is a phenomenon amongst newlyweds that I like to call “newly married, newly broke”.  Home ownership comes with the added costs of utilities, property taxes, insurance, furniture, regular maintenance, etc., which is often overlooked by new homebuyers. Many young couples in the GTA (especially in Vaughan and Thornhill) have the help of a parent or decide to use the money they received as wedding gifts for a down-payment. Remember that these other expenses exist beyond just your mortgage. The good thing about mortgage payments is that they are far more stable than rent, which can be increased as your landlord sees fit.

#4

What’s the market like in Toronto, Vaughan or Thornhill? Although there are certainly many advantages to buying a home, you shouldn't take the buying process lightly. Buying for the short term is almost never recommended. I advise all my clients to purchase only if they see themselves in the home for 3 or more years, or if they at least plan to rent it out in the future as part of their wealth building investment portfolio. Market timing is important, but becomes less so when you plan to hold for the long term. A trusted Realtor will do the research required to help you make a sound decision. Always look back at what comparable homes have sold for on the same street and in the neighbourhood.

#5

Toronto, Vaughan or Thornhill home locationsWhat lifestyle do we want to live? Are we looking for quiet nights in our cozy Vaughan or Thornhill home, or wild nights out downtown Toronto? Will you have people over all the time? How much house work are you prepared to do? Will you do much of the work yourself or will you hire people to do all the work for you? Understanding the life you are prepared to live will really help establish the type of arrangement that best for you.  If you aren't so sure you want the responsibility of maintaining a home, then perhaps renting may be the right thing for you. Home ownership requires a far greater degree of responsibility than when renting a home. You won’t have the luxury of simply calling your landlord every time an issue arises. Now that you've answered these questions, figure out what the prices are. You can begin your search at ilanjoseph.com to get an idea of what options you have available to you. Once you have narrowed down the type of home and your budget, contact The Ilan Joseph Team to help you maximize your home search and to quickly find you your dream home. If you have any additional questions about whether its best to Rent vs Buy, feel free to contact me.  

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  first time home buyer toronto ontariotoronto real estate vaughan real estate for sale   IMG_0080 bw Ilan Joseph is a Real Estate Broker with Sutton Group and is co-founder of a 10-person award-winning Toronto, Thornhill and Vaughan real estate team. You can find him on LinkedInTwitterYouTube and Google+. For over 10 years, Ilan has provided more than 1550 buyers and sellers valued advice and service, enabling them to reach their real estate goals. He’s kind of like the Bruce Willis of real estate.