RENTING IS BETTER FOR YOU IF YOU HAVE THESE CONDITIONS

RENTING IS BETTER IF..(To understand please try to read it completely)

Due to slow real estate market, many articles are in circulation, stating that now no one should buy house, instead they should rent ?

I am 100 % agree everyone should rent, because you save a tones of money you pay towards interest. 

However this is true only in following cases

1. If you are buying home for investment point of view and not to reside in.
2. You are going to spend your whole life a rental apartment.
3. You are not going to grow your family.
4. You are not going to invite your parent to visit you(applicable to new immigrants)
5. You are planning to spend your whole life in same 1 bedroom apartment.

If this applicable to you then you should never ever consider buying a home.

Because renting a 1 bedroom condo cost you approx $1100- 1200/month (Provided your landlord is not going to increase your rent.)

So in 5 years you will spend $66000 - $72000 and no other overheads.

WHEN RENTING CAN GO WRONG....

But wait ! Answer the following questions,

1. Did you immigrate to Canada to improve your life style or for investment ?
2. Did you plan to live the same life you had in your home country ?
3. Do you think growing your money is only your motivation 

If your  answer is "No" then go ahead and see the the calculation below, I am sure you are right. I am sure you will say aha! that's what I wanted to know.

To compare apple to apple, Let's take an example of Mississauga area, 

• The average rent for a 3 bedroom with 2.5 washroom is approx $1700 per month.(Assuming your landlord is so nice and not going to increase your rent). 
• In 5 years you will pay $102000 in rent.

Now same house if you want to buy, at today's market price it costs approx $400000.

• At today's mortgage rate of 3 % for 5 year.
• 20% down payment 
• 30 years mortgage(If 20 % down payment and 25 years if less than 20 %). 
• You pay approx $1345 per months toward your interest and principal payment. 
• Apporx $300 of property tax. Which brings the total of $1645.
• So in 5 years $98700.

It is never too late or early if you have a good paying job, to go ahead and be a proud owner of the place you can say your own.

Please give me a call to show you the Government of Canada's plans for Home Buyers. Oh ya..Government of Canada helps you become a home owner in Canada.

If you think, what ever I showed here is incorrect, you are always welcome to post productive comment.

Ritesh Joshi- 647-281-3424.