That Is the Question: Buying a Home in Toronto or Renting a Home in Toronto

What I am going to tell you is something that you might not hear from most of real estate agents.When you think, should you buy a home or should you rent, you must consider lots of obstacles. You might be one of those people who should consider renting and not buying.

Get a paper and a pen then start writing all the questions, like:

• What is my reason to buy?
• What is my financial situation?
• Where my work is standing?
• Which kind of credit do I have “bad or good”?
• What is my family status?
• Do I have enough down payment?
• Am I able to pay the mortgage and all other monthly expenses that is related?
• What are my other financial obligations (car payment, school,…)?
• Do I have the right and detailed information about purchasing a property?
• Am I qualified to get a right mortgage?

Write anything comes to your mind as a question and then start answering them. Some calculations would be needed. Ask other experienced and knowledgeable people.

Some mortgage brokers might tell you they could get you a mortgage even if you do not have a good credit ,or having enough income to show to the bank, or not having any or little down payment. Yes, maybe they could. But you have to ask them, which kind of effect this could have on the interest rate they would offer you,  the kind of mortgage you would get or is there any risk involved for you?

If you are qualified and your answers to all above questions are positive toward buying then you must buy and not rent.  Being qualified but still renting is a favour to the land lord by paying his or her loans and mortgages. Never forget, you must buy within a limit that matches your financial criteria.

Some times some buyers, after few years , come back and say, “I bought my home few years ago and now when I calculate the money I paid, I did not gain any extra cash flow”.

Check again more carefully, even if in the end you did not have noticeable cash flow in your pocket, but you were living rent free for few years.  That is for sure.

Don’t forget “Real Estate” investment is a long term investment.

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Are interested in buying or selling a property in Toronto? Give me a phone call at 001 416 704 0699 or click here to email me. Please click here to know more about the services I offer. Do you want to sell your property? Click here for free property value estimation.