Comparision between Buying and Renting

There are many different factors on which buying and renting can be compared:

• First factor is cost, in renting mostly monthly payments is low whereas if you buy it will increase amount of money you pay per month.

• A huge factor that can change your mind before making any deal is on renting your money goes to landlord or anyone who is renting you their property but if you buy you build your own equity as you make payments for property bought.

• Flexibility factor favours renting as it is flexible to move if you are renting any house or property but this does not work well if you have bought any property and it may cost you mortgage penalty.

• In case of house renting maintenance is key factor because maintenance expenses are not a big responsibility for tenants but if you buy any property there can be unexpected maintain expenses that has to be paid by landlord.

• Renting helps you to generate income by subletting and if you buy a property that helps you generate income monthly basis by renting and an additional advantage it has that you can borrow money by using it as security.

Some question you should ask yourself:

1. Do you have potential to buy?
2. Are you ready to take responsibility of ownership?
3. How soon you change your place?

source:http://www.getsmarteraboutmoney.ca/en/managing-your-money/investing/real-estate/Pages/Renting-vs-buying.aspx#.VPzgvULZpUQ

answer these questions and ask any question regarding the topic in comments.