Archive for January, 2011
Should I Buy a Home Or Rent, Which is Better?
Should I buy or should I rent This is a perennial question for those who want to move into a new home. While many people answer this question with broad generalizations, not backed up by actual facts and figures; the best way to determine whether you should buy or rent a home is to compare all the costs, factors and figures involved. Let’s take a detailed look at the question, comparing rental costs, mortgage payments, increases in home values and other factors which determine whether a person who buys a home gets a better deal than someone who just rents.
As an example, let’s compare renting to buying a $250,000 home with 5% ($12,500) down payment. Purchasing this property in Toronto would require about $6,000 closing costs and an approximate total of $2,000 per month which includes mortgage payments ($1,460), property tax ($150) and maintenance fees ($390). The rent on the same property is about $1,500 per month, therefore it would seem like it is easier to just rent the home instead of purchasing and to invest the $500 extra monthly payment, down payment and the closing costs.
Tags: actual facts, closing costs, generalizations, home values, investment growth, maintenance fees, mortgage insurance, mortgage payments, perennial question, year mortgageRelated posts
Tailoring Your Home Insurance to Suit Your Needs
Home insurance covers the physical structure of your house – also known as buildings insurance, but contents insurance covers the items inside it. The difference is important because your valuables are not covered by your home insurance, but by your contents insurance. And your building’s structure is not covered by your contents insurance.
This provides you with the flexibility to take out the cover you actually need, and avoid paying for cover you don’t. Here is a brief outline of the two main types of house insurance generally available, which will help you to make an informed decision when purchasing home insurance.
Tags: bricks and mortar, building insurance, buildings insurance, contents insurance, electronic goods, flood situation, goods furniture, insurance contents, landlords and tenants, physical structureRelated posts