and 70% since the 1950s. Most young people begin their independent lives renting an apartment, maximizing lifestyle flexibility and minimizing the hefty upfront costs associated with purchasing a home. As they build careers, save money, and start families, many choose to buy a home, recognizing that home ownership, as opposed to rental living, is more appropriate to their growing family needs. At the other end of the age spectrum are homeowners nearing retirement who may desire to sell their homes, downsize, avoid the maintenance and other obligations, and go back to renting.
WHICH IS BEST?
Is it better to rent or buy a home? Most adults ask themselves this at some point as they form their goals and plan for the years ahead. Before you answer the question, here are some things to ask yourself. Owning and renting each have their advantages, but what’s best for you depends on your circumstances. What will be the duration of your stay in t y in the home? Each Province in Canada is different, but whether the time you plan to own the house warrants its purchase is possible to predict. On average, it takes three to five years to break even on a home (i.e., where there has been enough appreciation to pay back the cost of the transaction and cost of ownership). If you’re thinking about buying a home and selling it in two years or less, buying is very unlikely to be cheaper than renting, unless you get lucky and buy just before a sellers' market.
Timing
Many buyers make the mistake of trying to time the market. In Alberta we have cycles that tend to be around 7 years mainly due to the price of oil and gas. The problem is you can't predict with certainty where we are in the cycle. I've had many clients put
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