What’s better, rent or buy your own home?
If you’re currently renting a place, and thinking of buying a house or condo, here is a chart that might interest you.
Owning a home is a personal choice, and more than simply a financial decision. Other factors come to play, such as lifestyle, job security, etc .
How to read this Chart:
Along the bottom you will find monthly rental payments, ranging from $1,000 to $1,750 per month. The corresponding home price, ranging from $165,000 to $326,000 assume a mortgage rate of 3.04% over 25 yrs, which is the current available rate, for a 5-yr fixed with the Royal Bank of Canada.
This rate also assumes a monthly property tax of $150 per month, and a heating bill of $80 per month.
(Unfortunately this needs to be said, because the last time we showed a chart like this, some knuckle-heads took offence): This chart is simply for comparison and informational purposes. DON’T go buy a house based on this chart. Speak to a financial adviser or mortgage professional first. This chart is merely an aide to help you decide whether its better to rent or buy.
Thank you to Lori Steingart, RBC Mortgage Specialist, for providing the data in this chart.
Mortgages push household debt to new levels?
We just need to be a little more conservative and as brokers focus on more than just getting a client approved for what they qualify for. The latest bank data shows that total Canadian outstanding household credit rose to $1.869 trillion in August, up an annualized pace of 5.9% from July. Compared to the previous year, household debts were up 5% – the highest year-over-year increase since October 2012. Residential mortgage debt shot up 7.5% annualized in August, raising the three-month rate to 7%.
More info via Winnipeg’s Real Estate Blog
Rent or Buy? Millennials better off buying a home than renting
Katherine Feser / Houston Chronicle photo Houston topped a list of cities where buying a home beats renting for millennials, according to a report by real estate listing firm Trulia. Trulias Rent vs. Buy report found that buying a house is 23 percent cheaper than renting nationwide for young households. Its an even better deal in Houston, where its 46 percent cheaper to buy than rent.
More info via Winnipeg’s Real Estate BlogOur Latest Web-Stories Never miss an episode of our real estate podcast. Install our FREE Podcast App available on iOS and Android. For your Apple Devices, click here to install our iOS App. For your Android Devices, click here to install our Android App. Check my videos on Youtube