If you are considering buying a house, one of the first decisions you need to make is whether buying a house instead of renting one is the right direction for you. Since owning a home is the "Canadian Dream", many people simply assume that it's always to their advantage to buy a home, and for most, it is. Take a moment to review the following lists to see how your situation fits in.
 
Renting
·         More fixed costs for the term of the lease
·         Not gaining equity, but not losing it either
·         When the lease is up, you can just move
·         There is generally less work in maintaining a home or apartment
·         Smaller amount of "up-front" cash
·         No matter what happens with the value of the home, you will never gain equity
·         Limited - or no - ability to personalize your living quarters
·         No tax advantage to renting. Your landlord gets any and all tax breaks that are available
Buying
·         Variable costs
·         Equity may go up, down, or stay stagnant
·         If you want to move, home generally must be sold
·         Work needs to be done by you - or paid for by you
·         Generally a larger initial investment
·         Over time, the mortgage balance decreases and equity builds, even if the value of the home does not increase
·         The ability to remodel and redecorate the home to match your needs and desires
·         There can be tax advantages attached to home ownership. Consult competent legal  and/or accounting advice for details for your situation
 


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