How To Know When It's Time To Stop Renting

Real Estate Agent with Royal Lepage Nanaimo Realty

With interest rates as low as they are now, are you wondering if it's time to buy a place of your own in Nanaimo?

When you first decided to rent in Nanaimo instead of buy, you may have just started a new job and weren't sure how long it would last, you may have felt that you weren't making enough money each month to buy a home, or maybe you did not have enough money saved up for a down payment.

Now, things have changed.  You're ready to find a place to call you own and you're ready to stop putting money into your landlord's pocket.

Here are some things that will help you decide if the time is right to stop renting: Is it time to stop renting?

First, talk with a lender or mortgage broker to find out what type of loan is best for you, what the required down payment would be, the price range that you qualify for, and what your total monthly payment would be - including mortgage payment, taxes and insurance.

Next, look at the various housing options that you can afford.  Don't forget to consider maintenance costs like painting and landscaping that come with a house, and the strata fees that come with a condo.

You already know what you spend now in rent.  Compare that to what your total monthly payment would be if you bought a place of your own.  If it costs a little bit more each month to own a place you can call yours, that isn't necessarily a bad thing.

That's because part of your monthly mortgage payment goes toward paying down the principal of your loan, so you are building equity.  Compare that to 100% of the rent you are paying now going directly to your landlord.

Also, consider that over time home prices have gone up.  So in addition to paying off your mortgage your real estate investment could also appreciate so that when and if you decide to sell you'll make some money from the home that you bought in Nanaimo.



Comments (1)

Mark Don McInnes, Sandpoint-Idaho
Sandpoint Realty LLC - Sandpoint, ID
North Idaho Real Estate - 208-255.6227

Yes I believe the time is slowly slipping away for renters to make the move.  Not because of it being a bad idea.  Because prices are starting to out reach so many renters.  Mark

Apr 21, 2015 09:17 AM