This is a decision which many people face and the decision is not as easy to make as it may sound.
Proponents of home ownership state that the benefit lies in the fact that equity in the property
will increase over time as the mortgage is paid down. That, combined with regular appreciation
in property value could leave the homeowner with a valuable investment after the mortgage is paid
off. In contrast, the person renting over the same amount of time is left with no property investment.
However, according to some, from an investment point of view, home ownership might not always be the
right decision. When comparing owning to renting, it's a numbers game: you have to add up all of the
figures, including the cost of your home, the size of your down payment, utilities, immediate repairs,
interest rates and insurance, and compare them to how much you are currently spending on rent. Of
course, you also have to place a value on the enjoyment and satisfaction that you will derive from
owning your own home.
Information for this article was taken from Mortgage Wise Booklet, Canadian Banker's Association.
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