Rent Buy During Pandemic
The decision to rent or buy a home is a complicated one, and it’s only made more difficult by the volatile situation created by the global pandemic. It doesn’t just make the actual process of finding a home harder, it also makes the housing market feel less stable, even though it is one of the few markets not suffering greatly from all the recent forced closures. It is, nevertheless, concerning when you’re considering making what is very probably going to be the biggest purchase of your life.
Because of all that, in the midst of a global pandemic may not feel like the right time to buy or even rent a new home, but although this health crisis has lasted longer than most of us expected, it's still true that it can't last forever. So, even though things may feel uncertain right now, that doesn't necessarily mean you need to put your plans for future homeownership on hold. After all, whether you're looking for your family's forever home, or just a good investment for the next few years before moving on to even bigger and better things, buying a home is a long-term investment. That means you need to think beyond the present moment when considering if you're ready to begin the next phase of your life.
Just because the rest of the world feels like it's on hold right now doesn't mean your future plans have to be. With that in mind, we have 3 important questions you should be asking yourself to help you decide if your next move should be another rental, or if you're ready to buy, and none of them are pandemic related.
What is your plan for the next 5 years?
This is one of the most important questions to ask yourself when deciding whether now is the right time to buy a home, or whether it would be better to continue renting. If you plan to stay in the same place for the next 5 or more years, owning your own home could be a viable option for you. But if your plans for the future are less long-term or stable than that, renting is more likely to be the right decision. Remember that there are significant costs involved in both buying and selling a home, costs that could significantly cut into your profits if you sell your home too quickly.
Can your finances support homeownership?
This brings us to the next subject you must consider before deciding to buy a home. There are more costs to buying a home than just mortgage payments. Beyond your initial savings for a downpayment, you should also have money set aside for the costs associated with the purchase of a home, and at the minimum a good understanding of what kind of costs you will encounter when it comes time to sell your home in the future. Aside from those lump sums, there is also the monthly carrying costs of owning a home to consider. It's not as simple as estimating the cost of a rental. After calculating your mortgage payments to determine what you can afford, you also need to include home insurance, utilities, property taxes and maintenance fees if applicable, all before you apply for a mortgage. That's a lot, and if you're used to renting it will likely increase the percentage of your finances you have to allocate to monthly housing costs. Luckily, with interest rates as low as they are right now, a good portion of those monthly costs when owning your own home will go directly to paying down your mortgage principle, so a good percentage of your monthly housing costs will go toward building your net worth, instead of going straight into your landlord's pocket.
Can you afford to buy a home you want in your preferred location?
Or are you willing to compromise with a longer commute to find a home that suits your family and your lifestyle? Quarantining has given a lot of people a new perspective on the value of owning a home with enough space to support every member of your family, but that doesn't lessen the importance of location. Many of us are working from home right now, but once the pandemic is over everyone will need to get used to a much longer commute than the walk from the bedroom to the home office again. You'll need to decide how best to balance your desire for a home office, (or a home gym, a luxurious soaker tub and spacious shower, or even just more bathrooms) with the location you want to live in. But don't worry. CountryWide Homes can definitely help when you choose the perfect home. We build beautiful homes all across the Greater Toronto Area, with such a wide selection of locations and designs that we can almost guarantee you'll find something that suits your family perfectly from amongst our many communities.
Our Orange Carpet Estates Collection is the perfect place to start your search. In it you will find the finest of our residences, with features, finishes and upgrades that exude elegance, sophistication, quality, style and taste, and all of them located in our most sought after neighbourhoods.
Ultimately, you're the only one who can decide when the time is right to buy your first home, but when you decide you're ready, CountryWide will be there to help you every step of the way.