rent or buy chair table

Buy vs Rent: Is Homeowernship a Cheaper Option?

Housing, do you buy or rent?

Sometimes people have the misconception that it is cheaper to purchase a house with a monthly mortgage payment than to rent based on comparing the mortgage payment to monthly rent. However, in actuality this assumption could be incorrect as there are many expenses involved with home ownership that need to be taken into consideration such as:

• Higher electric power bills
• Municipal water bills
• Insurance premiums are much higher
• Maintenance costs
• Property taxes
• Future increases in mortgage interest rates
• Potential decline in property values

Once these home ownership expenses are taken into consideration the cost of renting may be far less on an annual basis. Accordingly, the assumption that home ownership is less costly may truly be incorrect given the above expenses that are often forgotten about and not taken into consideration.

We hope the information discussed has given you some insight into home ownership and how it may affect you. We at Allan Marshall & Associates Inc. are always available free of charge to discuss any matters dealing with your financial situation. Please don’t hesitate to call us at 1-888-371-8900.

About Author

Mark Marshall BBA, C.I.R.P, L.I.T

Mark has been working in the Insolvency field since graduating from the University of New Brunswick with a degree in Business Administration (BBA). In 2012 Mark received his Chartered Insolvency & Restructuring Professional (CIRP) designation and attained his license as a Licensed Insolvency Trustee (LIT) in 2013.