To Rent or to Own Property

<h3> Looking into the Crystal Ball</h3> <p> As the title suggests, there are no real great answers to the question if it's better to rent or own. It often comes down to preferences. Owning a property means starting off with a mortgage. It means paying annual city taxes, insurance for any structures on the property and of course all maintenance that is needed to keep structures in good condition or the grounds looking decent. Renting means you pay an owner to look after all of those issues and quite often&nbsp;rent is cheaper than all fo those costs combined so there is a bit of a savings.</p> <p> Buying a home will have lots of costs involved but there may be a good return when finally selling the unit. This of course is a guessing game of sorts. It is not possible to know the value of a property down the road. Like any long-term outlook with lots of variables it is very complex to predict. However, it is possible to come up with some basic ideas if you are aware of your preferences and are willing to punch in some numbers: links www.nytimes.com/interative/2014/upshot/buy-rent-calculator.html?_r=0 ... It is true that property ownership is usually a way to make profit but it can also be unprofitable.</p> <p> <strong>Owning a Property.</strong>&nbsp;You have to take care of all of the payments required to own a property but you also get to customize the property that way you want. You can paint the walls the color you want. You can put in the appliances you want. You can fix up the yard the way you want. People like customizing their homes for their own enjoyment. Yes it is time-consuming and can be expensive but it is so worth having a place that is your own. As well, it will be all yours when you pay off the mortgage. That could mean a lot of value as well.</p> <p> <strong>Making profit out of owning property.</strong>&nbsp;To be profitable usually takes a long time. By paying down the mortgage you build up your value in the property. You can also try to pay down the mortgage quicker. One way is to make more payments either monthly or yearly. Check with the morgage holder and make sure you chose the method that pays down the principal the most. Paying off the principal lowers the interest paid over the duration of the mortgage. Another method to paying down the mortgage faster is to have a 'mortgage helper'. In simple terms that means a renter to help pay down the&nbsp;mortgage quicker.</p> <p> <strong>Renting. </strong>Quite simply, renting means you leave all of the property ownership problems/payments to the owner. You only have one problem to work on, paying the monthly rent. There are a lot less complications with renting. That may also mean a lot less headaches and stress.&nbsp;Of course, renting also means you don't have any long-term financial gain in the property.&nbsp;Another reason&nbsp;why renting might be your best option: • Enjoy being mortgage free - the pressure of having a mortgage can dampen some people’s lives. • More free time - not having to worry about all of the factors of owning a home such as maintenance and up-dates. • If your job or a growing family requires you to move, you don't have to worry about selling the place. You essentially just give notice, pack and move.</p> <p> <strong>Making Money out of Renting.</strong> Renting may be a person/families best bet for several reasons. Renting means that you don't have to pay separate city taxes or maintenance charges - they are paid for in your rent. Renting usually, but not always, means that you don't pay as much as a homeowner - this means that you should be able to put aside a bit of funds to add to your savings. Pretend that you are a home owner paying all of the regular home costs. Take the difference between the home owner and the renter and put that amount aside in an investment account. The savings will likely amount to a reasonable amount of money after awhile. It is a cross between being a home owner who makes back a lot of money down the road by owning the property outright and a renter who never makes any money back after paying rent most of their lives. It only works if it is possible to put the funds away and not touched for a long time. If you don't put the difference between rent and mortgage payments into savings, you are definitely missing an opportunity to save and invest.</p> <p> <strong>Results:</strong> It may just come down to a simple preference.</p> <p> Do you want to own a house because you like owning things and you can do what you want with the home (and you can afford to own a property). Or</p> <p> Do you prefer to not have all of the financial obligations and stress of ownership and just live in a nice place.</p> <p> The financial fact is that ownership usually brings with it a financial reward down the road as the mortgage is paid down and the owner starts to accrue ????? from the property.</p> <p> The financial fact is that renters can usually save because they are not paying taxes, insurance, maintenance and those funds could be invested over the period of a mortgage.</p> <p> Both situations can and should create ways to build a pot of money for your future.</p> <p> &nbsp;</p> <p> see the article with a set of rental and ownership financials to get a better idea of both scenarios. Link to the article +++"home ownership isn't for everyone" +++</p> <p> &nbsp;</p>

<h3> Looking into the Crystal Ball</h3> <p> As the title suggests, there are no real great answers to the question if it's better to rent or own. It often comes down to preferences. Owning a property means starting off with a mortgage. It means paying annual city taxes, insurance for any structures on the property and of course all maintenance that is needed to keep structures in good condition or the grounds looking decent. Renting means you pay an owner to look after all of those issues and quite often rent is cheaper than all fo those costs combined so there is a bit of a savings.</p> <p> Buying a home will have lots of costs involved but there may be a good return when finally selling the unit. This of course is a guessing game of sorts. It is not possible to know the value of a property down the road. Like any long-term outlook with lots of variables it is very complex to predict. However, it is possible to come up with some basic ideas if you are aware of your preferences and are willing to punch in some numbers: links <a href="http://www.nytimes.com/interative/2014/upshot/buy-rent-calculator.html?_r=0">www.nytimes.com/interative/2014/upshot/buy-rent-calculator.html?_r=0</a> ... It is true that property ownership is usually a way to make profit but it can also be unprofitable.</p> <p> <strong>Owning a Property.</strong> You have to take care of all of the payments required to own a property but you also get to customize the property that way you want. You can paint the walls the color you want. You can put in the appliances you want. You can fix up the yard the way you want. People like customizing their homes for their own enjoyment. Yes it is time-consuming and can be expensive but it is so worth having a place that is your own. As well, it will be all yours when you pay off the mortgage. That could mean a lot of value as well.</p> <p> <strong>Making profit out of owning property.</strong> To be profitable usually takes a long time. By paying down the mortgage you build up your value in the property. You can also try to pay down the mortgage quicker. One way is to make more payments either monthly or yearly. Check with the morgage holder and make sure you chose the method that pays down the principal the most. Paying off the principal lowers the interest paid over the duration of the mortgage. Another method to paying down the mortgage faster is to have a 'mortgage helper'. In simple terms that means a renter to help pay down the mortgage quicker.</p> <p> <strong>Renting. </strong>Quite simply, renting means you leave all of the property ownership problems/payments to the owner. You only have one problem to work on, paying the monthly rent. There are a lot less complications with renting. That may also mean a lot less headaches and stress. Of course, renting also means you don't have any long-term financial gain in the property. Another reason why renting might be your best option: • Enjoy being mortgage free - the pressure of having a mortgage can dampen some people’s lives. • More free time - not having to worry about all of the factors of owning a home such as maintenance and up-dates. • If your job or a growing family requires you to move, you don't have to worry about selling the place. You essentially just give notice, pack and move.</p> <p> <strong>Making Money out of Renting.</strong> Renting may be a person/families best bet for several reasons. Renting means that you don't have to pay separate city taxes or maintenance charges - they are paid for in your rent. Renting usually, but not always, means that you don't pay as much as a homeowner - this means that you should be able to put aside a bit of funds to add to your savings. Pretend that you are a home owner paying all of the regular home costs. Take the difference between the home owner and the renter and put that amount aside in an investment account. The savings will likely amount to a reasonable amount of money after awhile. It is a cross between being a home owner who makes back a lot of money down the road by owning the property outright and a renter who never makes any money back after paying rent most of their lives. It only works if it is possible to put the funds away and not touched for a long time. If you don't put the difference between rent and mortgage payments into savings, you are definitely missing an opportunity to save and invest.</p> <p> <strong>Results:</strong> It may just come down to a simple preference.</p> <p> Do you want to own a house because you like owning things and you can do what you want with the home (and you can afford to own a property). Or</p> <p> Do you prefer to not have all of the financial obligations and stress of ownership and just live in a nice place.</p> <p> The financial fact is that ownership usually brings with it a financial reward down the road as the mortgage is paid down and the owner starts to accrue ????? from the property.</p> <p> The financial fact is that renters can usually save because they are not paying taxes, insurance, maintenance and those funds could be invested over the period of a mortgage.</p> <p> Both situations can and should create ways to build a pot of money for your future.</p> <p>  </p> <p> see the article with a set of rental and ownership financials to get a better idea of both scenarios. Link to the article +++"home ownership isn't for everyone" +++</p> <p>  </p>