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Should You Rent or Buy a Home When You Start Working Full-Time?

Tuesday, November 14, 2017

You have made it through the grueling task of finishing college or university. Now that you have your degree, you’ve finally found a job that put you on salary or a decent hourly wage, and you are working full-time. Now the only question remaining is whether you should rent or buy a home?

Debt help in Vancouver British Columbia a happy couple showing off the keys to their new home

Purchasing a home is a big decision, and one you should not rush into. It is best to weigh your options carefully, consider the pros and cons, and think about your financial security before you purchase or opt for rentals.

Renting versus Buying: Which is Right for You?

Owning a home can be rewarding. Your monthly payments go toward building equity, and you have an investment that could provide you with a solid return later. Then again, the housing market is unpredictable. One minute you are up, while the next minute you are too much in the negative to get out of your home anytime soon.

Renting and buying have their pros and cons. When it comes to comparing them, it all depends on your financial situation and what you are comfortable with:

  • Down Payment: Look at your savings account. Do you have enough for a down payment plus leftovers in case of an emergency? If you must drain your savings account just to buy a house, you are not in the position to buy. Furthermore, if you have no down payment saved up, consider waiting a little longer until you do.
  • Job Longevity: You were just hired and started your full-time position, but how long will you be at the job you are in? Does it have the promise of long-term growth? Stability is important when purchasing a home. If you are going to travel, be moved from office-to-office, or you do not see yourself at the same job a few years from now, renting may be better.
  • Additional Costs of Ownership: When you rent, you forgo the usual costs, like maintenance, property taxes, homeowner’s insurance, and repairs. As an owner, all these costs fall on your monthly budget. Therefore, consider your budget for the month and check how much extra you would have for these costs. Even if you would be approved for a loan, can you afford the extra costs, including emergency repairs?
  • A 5-Year Plan: Unless you plan to stay in the house for 5 years or more, renting may be a better choice for most individuals and families. Home ownership only pays off when you have time to build equity, which typically requires 5 years or more.
  • Investment: Are you ready for a significant investment? With low-interest rates, purchasing a home can be a solid investment in your portfolio, and you have tax benefits that can help lower your annual tax obligation.

Debt Help in Vancouver Could Make Home Ownership a Reality

If your dreams of owning a home are quashed because you cannot afford your monthly debts, a consultation for debt consolidation in Vancouver could be the solution.  We have eight convenient locations throughout British Columbia with teams prepared to help you manage your debt.

Having too many debts can hurt your credit score and raise your debt-to-income ratio to a point where you could never qualify for a home loan. The team at Abakhan & Associates can review your current situation and help get you into a plan that puts you on the right path to home ownership.

Contact us today for debt help in Vancouver. We can help you plan how to pay off outstanding debts and restore your credit for a home loan.  Call us at 877-308-8877 or contact us online to make an appointment today.

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