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, represents equity. At the other end of the age spectrum are homeowners who are retired and may desire to sell their homes, avoid the maintenance, downsize, go back to renting, or make the shift to assisted living.
WHICH IS BEST?
Is it better to rent or buy a home? Before you answer the question, here are some things to ask yourself. Owning and renting have advantages, but what is best for you depends on your circumstances. What will be the duration of your stay in the home? Are you looking to stay in a home for 5, 10, or 20 years? Does this home represent the your forever home? The length of your stay is a significant calculation in what you should be prepared to pay for the home. Evaluating your house as an investment in your retirement plan? Canadians are used to their homes being a store for wealth to liquidate in retirement when downsizing their lifestyle. In 2015, Gallup reported that for the second straight year, more respondents named real estate than stocks, gold, savings accounts/CDs, or bonds as the best long-term investment. Real estate leads, with 31% of respondents choosing it, followed by stocks/mutual funds at 25%. Remember, home prices can rise and home prices can slump. Are you financially ready? Owning a home is a financial commitment that requires planning how home ownership fits into where your life is headed. Ask yourself what your budget 15
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