To rent or own a home is an ongoing debate in today's world. Angela Self, a personal finance columnist at The Globe and Mail, revealed the pros and cons to each strategy on Monday on CTV's Canada AM.
Key points:
* Renting can be a good thing for people living in Toronto, Vancouver or Calgary, where real estate prices for houses and condos have escalated in recent years.
* Renting can also be a good option at the start of a career. It gives people more flexibility should they need to move for a new job.
* Try to save money while renting. This will allow hopeful buyers to make a significant down payment on a house in the years ahead.
* For those in the market to buy house or condo, look at all the costs attached to the property before the deal is signed. This includes heating, repairs and all other maintenance costs.
* Buyers should spend no more than 40 per cent of their income on housing. Also, a mortgage should be no more than three times your income.
* Property owners should stay a house or condo for at least five years. This is the general amount of time it takes to recoup many costs and take a bite out of a mortgage.
* For those who can afford to buy, owning a home is a good investment tool. People spend thousands of dollars on rent, according to Self -- a founding member of the Smart Cookies Money Mentoring website. The same amount could be spent each month on a mortgage.
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