Before deciding which is the best way to finance buying your dream home, consider first if this is the right thing to do or if you might be better off renting.

There are other factors, none financial, which will affect your decision to rent or buy.

These are

  • Do you need to be mobile?
  • Are you sure you want the responsibility of ownership and all the hassle and the problems that goes with it.

Let’s look first at the purely financial reasons.

If you were to rent an unfurnished, two-bedroom, semi-detached house in a pleasant residential are of a largish city, you would probably have to pay rent of several hundred dollars or up to $1000 per month. Over a 25-year period, that works out at around $300,000. and that’s if the rent doesn’t go up during that period, which it almost certainly would.

Continue reading “Should You Rent or Buy a House.” »