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Buy vs. Rent

General Kristin Woolard 5 Feb

Yesterday I was enjoying the magic of the Super Bowl with friends in the comfort of my own living room and it occurred to me how privileged I am to have a place I can call home.

I have been a homeowner for years and am so happy not to have to answer to a landlord anymore. My mortgage payments are helping me to build the equity in my home, not to mention the appreciation in value I have been fortunate to experience.

As a First Time Homebuyer back in the day I remember how confusing and stressful the buying process was but wow, was it ever worth the exercise. If I’d just remained a renter I would have likely paid off someone else’s mortgage by now!

Today’s rental market is a tough one. There are not many options out there and if you do find your perfect place you are likely to pay at least $1,500.00 per month for a one-bedroom condo – that’s insane…

So how would it look to get into your own place? Let’s take an example of a one-bedroom condo in Port Coquitlam or Maple Ridge. You can get a decent place for $350,000.00. You would need at least 5% down ($17,500) and enough to cover closing costs (approximately $5,000.00). That may seem like a lot but there are many ways to put together that down payment. You can save, possibly get a loan for all or some of it, and you can even get a gift from a direct family member.

So if you were able to get your down payment and find your ideal new home, at today’s interest rate of 3.19% your monthly payment would be $1,670.00. That’s just $170.00 more a month than renting the same condo.

Jumping off the fence and getting into the market can seem like a daunting task but if you have the right team around you to help you navigate the process it becomes a lot easier to make some confident decisions. A realtor can help you find the right place, a mortgage broker can make sure you select the best mortgage and a lawyer will help protect your interests.

It all starts with a little research and if you, or anyone you know, needs a little help deciding if the time is now let me know. I’d be happy to help.