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We hope we haven't overwhelmed you yet! We have shared a lot of sources so far that suggest many things that should be considered before deciding whether to rent or buy a house. This video contains a few more things that we found interesting and other sources have left out.

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Money is likely the element of buying or renting houses that plays the largest role. So far, many factors, including money, have been discussed. However, the money and numbers hasn't been focused on and broken up quite yet. In this video by Khan Academy, a fantastic analysis of where the money goes and how much of it goes, is discussed. This video is highly recommended to anyone who is unsure about the "money flow" of buying or renting a house.

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(http://bcove.me/c6fzur99)

This video breaks down some more factors that play a role in the decision whether to rent or buy a home. Some of the points that were brought up in this video go beyond what was discussed in cur Money Matters Course and on other sources we have linked in our Padlet so far.

Some Points that we found important to consider as suggested from this video are:

How long do you plan to be at this home for?

In the video, there is discussion about how the duration of staying at a home would make reason or to buy or rent. Based on this video, the magic number is four (4) years. If you are planning to stay for at least four years, then buying makes sense. If not, consider renting. We agree with her reasoning that she suggests; renting offers you flexibility in your short-term, less than four year home and buying but selling quickly could put you at risk of selling into a down market.

What is Affordable?

This question is challenging. It is a fact that the market of buying and renting is an up and down roller coaster. So much so that in some places, renting has actually become expensive than buying. Based on this, if one is set to seek a home in a certain area, they should consider both their budget and which option will be more or less costly for the duration they plan to live there... Get out that calculator!

Tax Deductions

Homeowners, with mortgages, are eligible for tax deductions. When you pay rent, the money just kind of disappears away. Something to keep in mind.

Down Payments

Down payment requirements are sometimes surprisingly low for some home buyers, but, sometimes, surprisingly high... Do your research!

Other Costs of Buying

Closing costs

Maintenance

Insurance

Taxes

How is Your Credit Score?

If your credit score is not great, consider renting for now because if you try to buy, your mortgage rate will not be too great either.

In our opinion, this is a very important take home equation to remember:

Higher Credit Score = Lower Interest Rates

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Rent or buy? When you see this you'll know

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When trying to decide between renting or buying, weigh these three factors to know what's best for you.

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This tool will give you a quick and simple answer on if you should buy or rent!

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(http://www.businessinsider.com/buy-or-rent-a-home-flowchart-2016-7)

Below, the image presents a simple flow chart that can be used to direct you towards whether you should rent or buy. You start with the initial question, and just follow where the arrow points to. Continue doing this until you get to "Rent" or "Buy".

This is very simple and quick. It does not discuss any financial variables specifically, however, it poses simple questions about your financial situation. These questions are the typical questions that you would ask yourself to decide whether you are ready to buy or not.

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Get the facts (and the numbers) that contribute towards buying or renting a home! This image breaks down the average costs and the factors that contribute towards home (and renting) costs.

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(https://www.pinterest.com/pin/307300374544804565/)

The following image breaks down the costs of ownership when it comes to buying and renting. It breaks down the factors, how fast the prices raise, and how long you expect to stay living there.

For the cost breakdown, it breaks it up into purchase costs, yearly costs, lost opportunity costs, and selling/leaving your rental costs.

There is then a year by year analysis that suggests that you save money if you rent in years 1-4. After 5 years, the purchasing of a home starts to save more than renting does.

It also breaks down some other costs like utilities, appliances, furniture, yard care, and pest control along with an average cost.

At the bottom of the image, a graph is made that shows why buying is better than renting after 5 years.

This image is a helpful tool that lays out the costs of renting vs. buying a home. It can be very beneficial as it breaks down the per year cost, along with the common factors for whether you should rent or buy.

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Salaries & Average Home Prices Across Canada?

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Salaries & Average Home Prices Across Canada?

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As the prices of the housing market continually increase in the GTA, take a look at the salary needed to live in a particular city across Canada, and the average house price in that area!

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Buying a Home may be a goal, but does it make sense?

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Buying a Home may be a goal, but does it make sense?

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Is it better to rent or buy? How do I know? Typically, buying a home is the preferred option, but renting can sometimes be more beneficial depending on the situation. This video will help you see why each option is better than the other, and questions are posed to help you decide if renting or buying is the better option for you!

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(https://bettermoneyhabits.bankofamerica.com/en/home-ownership/should-i-rent-or-buy)

This link will bring you to a video that explains the pros and cons of buying and renting a home, along with some questions to help you decide what is better for your current situation.

Renting or buying is such a big decision, each coming with multiple pros and cons. To sum up the pros and cons posed in the video, they are listed below:

Renting
Pros:

Monthly Rent: May be easier to afford as it wouldn't be as expensive. This would then allow you to save up for other purchases or goals.

Ability to Move: Renting generally gives you more freedom to move around more often.

No Maintenance: No responsibility for repairs or maintenance costs.

Less Insurance

Cons:

Less control: There are more limitations when it comes to the living environment and what you can do with it. There may not be as much freedom to decorate or install appliances (such as a washer/dryer), unless given permission by the home owner.

Rent Can Increase: It is possible that rent will increase

Equity: As you pay someone monthly, that contributes towards their equity, and not yours.

Buying a Home
Pros:

More Control: You can do anything when it comes to your living area as you call the shots and have control over what can and cannot be done

Good Credit = Good Interest Rate: Having a good credit allows for the potential of a better interest rate, allowing you to have a better interest rate per month

Equity: Each payment that you pay, contributes towards your equity, allowing you to eventually have full ownership.

Cons:

Relocation: It is not as easy to relocate. You would have to sell or rent your home before you can move.

Money: It is important to have a significant amount of money saved for a down payment, as well as an emergency fund.

Extra Costs: These can include closing costs and unexpected costs.

The video also explains why it is important to have a 20% down payment. If you have less than a 20% down payment, it could end up costing you even more. You may have to purchase extra insurance as well. As well, the video poses questions that you should ask yourself to consider if renting would be a better option for you or not.

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Should I Rent or Buy a Home? What are The Pros and Cons?

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Wondering if you should rent or buy? Learn the pros and cons of renting vs buying from this Better Money Habits video.

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How to decide if now is the right time to rent or buy?

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How to decide if now is the right time to rent or buy?

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There are many factors that contribute whether you should rent or buy, with the major one being your financial situation. We have found a tool which allows you to input your financial information, and concludes with a summary whether you should rent or buy, or do both!

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(http://www.rentseeker.ca/blog/index.php/how-much-do-you-need-to-buy-a-house-in-cities-across-canada/2339)

In the image below, it depicts "The Salary You Need To Buy A Home In Cities Across Canada". It lists the popular cities throughout all of the provinces across Canada, along with the needed income and the average home price. The most expensive place to live in Canada is in West Vancouver, British Columbia. The average home price is $1,757,700 and a needed income of $320,932 is required. The least expensive place to live in Canada is in Fredericton, PEI, with and average home price of $156,000. The needed income to live in Fredericton is $36,836.

If you are curious about how the home prices vary and what salary is needed, take a look at this image!

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(http://www.huffingtonpost.ca/2016/04/01/canada-real-estate-rent-buy_n_9587556.html)

This link brings you to an article called

Canada Real Estate: Rent Or Buy? This Slider Should Help You Decide by Jesse Ferreras.

If you are someone who would like to move across Canada but you are not sure where you would like to go because of financial reasons, this webpage will be your friend! It's quick and simple! Glide over the city you are interested in and pull the slider left or right. Pulling it to the left will show a cost to buy an average apartment while pulling it to the right will show a cost of renting a one-bedroom living space. Based on the city, one could then decide whether renting or buying is a better option. One should reflect on the questions discussed in the first post on this Padlet and other materials posted here. Although this tool might not be specific to your search, it will at least give you a trend and idea of the cost in one city compared to another. Give it a try, and bon voyage!

But remember, you shouldn't just hop on a plane or train based on these renting or buying prices. Consider employment stability, climate, what you are looking for in your new home and neighborhood, your budget, friends and family.

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"Why rent when you can buy?"

It's a familiar phrase you hear from real estate agents. And in certain parts of Canada, the answer is, "it's too expensive."

But how much more are you paying per month where you live? Is your rent really so far off what you'd pay for your own home?

The Huffington Post Canada has weighed the cost of renting versus buying in the slider graphs below.

To come up with these numbers, we used a calculator created by rental website Rentseeker, which contains data showing the average cost to rent in various communities.

We then calculated monthly prices for buying homes ourselves using a number of factors.

First, we looked at a home's value. This was determined by seeking out the average cost of an apartment in each city in February 2016. Not all cities broke down the cost of apartment by type, be it one-bedroom or three, so this was not considered.

(In some cases, we had to use median or benchmark prices, when averages weren't available. In one case, we used data from the second quarter of 2015 when February, 2016, numbers weren't available.)

A 2.89 per cent interest rate was applied to a hypothetical 25-year mortgage for an averaged-priced apartment in each city, with a 20 per cent down payment. Anything less than that would have required factoring in CMHC insurance, which is not included here. (Note that if you were to put down less than 20 per cent, your monthly payments would be higher than the estimates here.)

Then property taxes were applied, taking a home's average price as its assessed value - though in reality, these two values are not often the same. The calculations do not include condo (or strata) fees, as these vary widely. They also don't include utility bills or home insurance.
This is what it costs to buy an average-priced apartment vs. renting a one-bedroom unit in nine major cities:
Swipe right for rent. Swipe left for buy.
Vancouver Calgary Edmonton Saskatoon Regina Winnipeg Toronto Ottawa Montreal
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Canada Real Estate: Rent Or Buy? This Slider Should Help You Decide

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"Why rent when you can buy?" It's a familiar phrase you hear from real estate agents. And in certain parts of Canada, the answer is, "it's too expensive." But how much more are you paying per month where you live? Is your rent really so far off what you'd pay for your own home?

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It is a fact that different places across Canada cost more or less to live when it comes to buying or renting a home. One can do some research, but that can take a while. We found a wonderful link that can quickly show you costs in different cities across Canada! It's really quick to use. Give it a shot, eh!

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(http://www.getsmarteraboutmoney.ca/tools-and-calculators/buy-or-rent-calculator/buy-or-rent-calculator.aspx#.WL2sZm8rKUk)

Below, is a calculator that can be used to help you determine whether buying or renting would be the better option. The calculator is broken down into multiple entities. It gathers together a summary based on your net investment gain, and determines if buying or renting would be better.

In order to use this tool, there are two tabs; 1) "Buying a home" and 2) "Renting home". Once both tabs are filled out with the appropriate information, press calculate. Below, it will tell you whether buying or renting is the better option. Depending on the situation, it may give the option that you should rent for so many years, and then consider buying a home.

Below the results, it lists the buying and renting summaries. Each displays the investment value, money invested, total expenses, and then overall net investment gain. It also creates a chart that will display why buying and/or renting is better for you, over a 30 year term.

I think that this is a great tool for people who are trying to figure out if they are able to afford the cost of buying a home as you can type in information that is tailored to your situation. It then illustrates a graph and gives you a visual representation of the difference between buying and renting and which would be the more beneficial option.

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(http://globalnews.ca/news/985258/to-rent-or-to-buy-8-questions-canadians-should-ask-before-taking-the-plunge/)

This link brings you to an article called

To rent or to buy? 8 questions Canadians should ask before taking the plunge by Erika Tucker. On this webpage, a tool that asses how much one can afford to spend on housing costs based on their income and some housing payments is included. According to this source, mortgage experts suggest that one (or a household) should not spend more than 32% of their income on housing costs. If you are in the market, (or think you are in the market,) give this calculator a try!

Also included on this page are 8 important questions that one should reflect on before deciding whether they are ready to purchase a home or not. These questions prompt one to consider finances, emotions, and situational stability. We highly recommend that you give this article a good read before entering the market. Print them out and stick them on your fridge; it will help A LOT.

One should always remember that in general, the question whether to rent or buy is totally situational. Some people may be in a position where they have the stability and funds to buy a home if they choose and some may not. It is not a yes-or-no question, not a go-or-no go question, but a depends-on-this-and-that kind of question. This article, along with the other sources posted on this Padlet will help answer the question.

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TORONTO - Should you rent or buy?

Conventional wisdom suggests it's a no-brainer - buying real estate is a worthwhile investment with a high return.

Despite record low interest rates, the sky high prices and carrying costs are causing many to rethink the allure of home ownership.

When you factor in the costs of repair, maintenance and other expenses associated with owning a home, Toronto-based financial planner Shannon Simmons argues that renting and putting saved money into another investment - such as a stock portfolio - could earn more in the long run.

Simmons gives new clients a questionnaire asking where they see themselves in 10 years. Many answer "buying a house."

"Then we meet in person, and they say, 'Oh I don't really care if I buy a house, but shouldn't I want to?'"

Based on advice from financial planners-both independent and those employed by banks-Global News has compiled a list of questions (and some context) to help you decide whether buying or renting is the right move for you.
Mortgage experts suggest no more than 32% of household income be spent on housing costs. How much house can you handle? Try our affordability calculator Click here to view data " 1) Do you have 10-20 per cent of the home's purchase price saved for the down payment?
While it's possible to purchase a home with as little as five per cent down in Canada, big banks prefer first-time home buyers to have an average of 10 per cent.

"If this is the property of your dreams and it's a really good buy, and you don't have the full 20 per cent down," says Royal Bank of Canada's Rachel Wihby, it may make sense to pay the mortgage loan insurance charged to anyone who doesn't put 20 per cent or more down on the home.

But "the less you put down, the higher the amount that you're actually being charged," Simmons said. That could mean you end up paying an additional $10,000 or more.
2) Do you have another 1.5-5 per cent saved for closing costs?
First-time home buyers don't have to pay realtor fees, but there's a number of other closing costs that need to be taken into account.

Depending where you live, land transfer taxes can carry a "significant" price tag, said Farhaneh Haque, director of mortgage advice for TD Canada Trust.

"Lawyer fees, seller/buyer property tax adjustment, appraisal fees, home inspection fees, even just your moving costs," Haque said.

David Stafford, Scotiabank's managing director of real estate secured lending, added fire and loss insurance to the list, suggesting $50-$100 per month as a ballpark figure.

Stafford also stressed the value of a building inspection, particularly for first-time home buyers, who may be easily impressed by granite countertops and hardwood floors but miss such other details as an old furnace, a leaky roof, or electrical wiring that's in need of repair.

"Given you're contemplating a multi-hundred thousand dollar purchase, a building inspection for a couple hundred dollars isn't a bad idea."
READ MORE: Why this Calgary tenant has no plans to buy 3) Can you keep debt servicing below 40 per cent of your income?
Your total debt service ratio measures the percentage of your gross annual income needed to cover housing payments (principal, interest, property taxes and heat, known as "PITH") plus registered debts like car loans, personal loans and credit cards if applicable. Simmons says this 40 per cent rule is "specifically to please the bank" and is the general eligibility criteria when applying for your mortgage at most financial institutions.

So if you add it all up, housing payments and other debts should be between 35 and 40 per cent of your gross annual income.
4) Are your monthly fixed costs at 50-60 per cent of your after-tax income?
These "fixed costs" include housing and transportation, groceries, toiletries, and "everything you have to pay every month whether you like it or not," Simmons said.

"When the money hits your bank account, if more than 60 per cent is tied up in things that you can't get out of every single month, then you have no room after that for spending money which is not a fixed cost - things like going out for dinner, going out with friends, weddings, anything else that's not just a bill."

Keeping this ratio under control ensures you have enough money left over to keep saving, and avoid becoming "house poor."

"Once you buy a house, it's not like retirement's done; you still have to save for other things," Simmons added. "You also want to make sure that you have enough cash flow every single month that you don't have to go into credit card debt - and that's what I see: house broke, all the time."
READ MORE: Ditching a Vancouver condo for a Coquitlam townhouse 5) Can you save 1-2 per cent of your income in a "housing maintenance fee" each year?
The top mistake Canadian homebuyers make? Underestimating "significant renovations needed to the property," according to a recent RBC poll.

Stafford suggests asking your realtor, and getting a home inspection.

"Even if it's in pretty good shape, most homes of any age, there's something you've got to do every year...and you need to factor that into your cash flows," he said.

Simmons advises setting aside 1-2 per cent of your after-tax income each year to what she calls a "house maintenance fund" to avoid going into debt.

"When there's not that extra cash sitting in an emergency fund, if there's a $10,000 renovation or if you get cockroaches ... It has to go on debt, because you're not going to live in a place with cockroaches," she said. "That can take a long time to pay off if you don't have flexibility with your cash flow."
6) Do you plan to stay in your home for at least three years?
Haque said TD advises clients to think about their life in three- to five-year chunks when considering purchasing a home.

A young couple buying a condo, for example, should consider how soon they'll need a bigger space if they want children in the near future.

Wihby suggests regarding a home as a long-term investment - it might not be worth it if you buy a home and sell it a year later.
READ MORE: Haunted house-hunting in Toronto 7) Is your job stable?
Are you planning to stay in your field? What would happen if your income decreased?

These are some of the questions RBC planners ask clients to determine how monthly payments and lifestyle would change as a result of job fluctuations.

"So you need to think of things like, will you be on a single income household instead of two?" Wihby said. "Maybe that means you won't be taking those trips you thought you'd be taking or maybe you won't be going to the gym as often."
8) Are you emotionally ready to own a home?
It may sound hokey. But this is a big lifestyle leap to take.

"A lot of people heard that it was almost a no-brainer to go into property, especially when we saw property prices rising like we did in the past," Wihby said. "But I think a lot of people got into purchasing a home before they were ready emotionally."

The impact of what Stafford calls the "single biggest financial commitment for most people" includes the mental shock of going from a tenant to a homeowner.

" When you're a tenant, the month that cheque goes out, it clears your account, and then you don't think about it for the next 30 days," Haque explained. "But when you're a homeowner, you have those multiple payments like home insurance, maintenance fee, utilities, property taxes, that you have to account for on an ongoing basis. And sometimes it's very much a shock to your system."

Simmons emphasizes that homeownership is a personal choice, and isn't the imperative it was 30 or 40 years ago.

"I know a lot of professionals who just don't want to be bothered cutting the grass on Saturday, and doing the gardening. ... They would much prefer to rent and save a bunch of money, so they can travel every weekend," she said. "If you're not actually going to enjoy the house, what's the point in buying it?"

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To rent or to buy? 8 questions Canadians should ask before taking the plunge

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TORONTO - Should you rent or buy? Conventional wisdom suggests it's a no-brainer - buying real estate is a worthwhile investment with a high return. Despite record low interest rates, the sky high prices and carrying costs are causing many to rethink the allure of home ownership.

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(https://www.khanacademy.org/economics-finance-domain/core-finance/housing/renting-v-buying/v/renting-vs-buying-a-home)

Get your calculator, an Excel spreadsheet, pen and paper, whatever you need to crunch some numbers and take notes! This video by Khan Academy does an excellent job of breaking down where money goes when it comes to renting or buying. They make comparisons of values and demonstrate with numbers what outcome to expect when deciding to rent or buy a home. So far on this Padlet, you have seen numerous comparisons and points made between the pros, cons, and considerations that go along with making the decision to rent or buy a home. This video does, in our opinion, the best job at breaking down the numbers of where your money is really going whether you are buying or renting. At around 7 minutes and onward, the chain reaction of money to here and money to there is discussed and is quite interesting. This was eye opening to see that even when you own a house, money is being "burned," too. The video does a far better job than we could when it comes to explaining this stuff... give it a watch!

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Learn for free about math, art, computer programming, economics, physics, chemistry, biology, medicine, finance, history, and more. Khan Academy is a nonprofit with the mission of providing a free, world-class education for anyone, anywhere.

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A common question that one would ask is should I rent or buy a house? To help someone find an answer, we have found some links and tools that will help!

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                          Renting vs. Buying A Home                                                                                          

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                          Renting vs. Buying A Home                                                                                          

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By Salvador Di Giorgi & Emily Kiyonaga