Renting VS buying a home by

Welcome

mayaaustin1 — 2024-04-01 22:55:03 UTC

Renting Vs Buying a home by : Maya Austin

Welcome to my padlet!

In my padlet you can expect to learn all about buying a home versus renting a home.

Thank you for your time and I hope you enjoy my content.

Article #1

mayaaustin1 — 2024-04-01 22:57:13 UTC

This website gives an extensive list of the pros and cons of owning vs renting due to high housing values and high interest rates. Many young Canadians won't even qualify to get a mortgage to buy a house. Younger Canadians in this situation are better off renting but the author encourages them to be very strict about a savings plan that would mirror what homeowners do when they pay into the equity of their house. This article is helpful by reminding renters to invest in other things for their savings.

Article #2

mayaaustin1 — 2024-04-01 22:58:57 UTC

This article says that there is no right or wrong answer to the buying vs selling debate. Renters can still invest in real estate through the stock market without having to be tied to the ownership of a house that might be hard to sell should you need to. The article points out the financial freedom and flexibility that renters have over the stability and commitment that owners have. Each buyer or renter should carefully consider the stability of their finances and the freedom of lifestyle they desire. I chose this article because it shows that there is no right or wrong answer to the question but that each person should consider their own tolerance for financial risk and lifestyle choices.

Article #3

mayaaustin1 — 2024-04-01 23:00:01 UTC

This article debunks the myth that renting is throwing away money. Owning a house has a lot of extra costs at the beginning of the process that make it hard for home owners to keep up with all the extra payments and get ahead. On contrary, renters dont have to make a downpayment, maintenance costs, repairs, or insurance. All of this extra money not paid upfront by renters could pay off debt, go into savings or into other investments for the future. I like this article because it gives an opposing view of the traditional one.

Article #4

mayaaustin1 — 2024-04-01 23:01:09 UTC

This article also compares the pros and cons of renting vs ownership. Renting has fewer hidden costs and gives more flexibility to move when financial circumstances require it. Renters have the ability to put this extra money into savings but the realities of life and spending mean that they often don’t. Home ownership forces people to save by putting money into their mortgage that will become equity in an expensive asset that will benefit them in the future. I chose this article because it talks about the importance of saving for the future through a mortgage.

Video #1

mayaaustin1 — 2024-04-01 23:02:03 UTC

In current market conditions it is cheaper to rent than to buy. Mark, the man in the video suggests that buying costs in Ottawa for example would average out to $3600 a month vs $2200 a month. While renters don’t have the advantage of paying equity into a house, buyers have many additional costs, such as mortgage insurance, property taxes, possible condo fees, insurance and utilities. Renters also have the benefit of moving should they need to financially.

I chose this video because it gives a good contrast of the different sets of expenses of the housing market. Not only does he talk about it, but he shows it as well which is beneficial for visual learners like myself.

Video #2

mayaaustin1 — 2024-04-01 23:06:03 UTC

This video discusses the hidden costs that come with owning a home such as the utilities of water, electricity and gas for example. These costs are not fixed and can easily add up to 20% of your monthly living cost. Home owners are responsible to pay these utility bills and so renters have the advantage of paying the flat monthly rate. This article is useful because its a good warning for first time home buyers and immigrants inexperienced in the market to be prepared to pay extra money every month.

Video #3

mayaaustin1 — 2024-04-01 23:07:15 UTC

The video host compares the costs of owning and renting in an expensive city like Vancouver and concludes that while the monthly cost is cheaper for the renter, the owner will benefit more in the long run. The owner benefits because by putting down a smaller amount of money up front in the form of a down payment they get to own a very valuable asset. They have time to pay it off and in the end when their home grows in value they will have an even bigger asset. This video is useful because it gives wise insight into the long-term gains of the housing market.

Video #4

mayaaustin1 — 2024-04-01 23:07:45 UTC

Traditional advice has always been that it is a better investment to buy a home than to rent. But this has changed in recent years. Real Estate prices in major Canadian cities have skyrocketed making it nearly impossible for new buyers to afford anything New owners have to put down at least 10% which is over $100,000. Since covid housing prices have dropped and interest rates have risen, meaning that those who can afford a down payment are paying extremely high costs every month just to pay the interest on the mortgage. The Man in the video concludes that it is wiser for young people to rent and invest their money in other opportunities like the stock market. This video is useful as it breaks the old advice and shows young people the smart new way to invest.

Image #1

mayaaustin1 — 2024-04-01 23:12:55 UTC

This picture compares the flexibility and stability of renting vs owning. Renting offers the flexibility to move for job and lifestyle choices while home ownership offers the flexibility to renovate and decorate your property to your own style. Renting offers the stability of payments so that the renter can pay down debt and explore other opportunities while home ownership offers the stability of paying into an asset for the future. I like this image because flexibility and stability are both important for young Canadians to consider.

Image #2

mayaaustin1 — 2024-04-01 23:13:15 UTC

This picture talks about the reality of living situations that young Canadians will find themselves in when they graduate from college or university. You should only buy if you have enough money for a down payment, if you have a secure job to qualify for a bank mortgage and if you are ready to take on the debt of owning a home. If you are living from paycheck to paycheck, still saving for a down payment and don’t have a stable job renting is the way to go. I like this picture because it makes the choice very clear based on circumstances.

Reflective questions

mayaaustin1 — 2024-04-01 23:16:44 UTC

What did you learn about your topic that surprised you the most?

What I learned regarding my topic that surprised me most is that there is in fact no right or wrong answer and that it is strictly situational per person and what will suit them and their lifestyle best.

Provide a real life example of how this topic is relevant or interesting for you.

This topic is relevant for me as I am looking into moving out in the coming years so it is something I am actively learning about.

If you could pass on your knowledge to a family member or friend, what do you think is the most important thing to pass on.

The most important knowledge I would pass on is to do your research. Everyone is different and just because something works for someone else, doesn’t necessarily mean it will work for you.