Tanya Tanimoto | Wayland Real Estate, Weston Real Estate, Sudbury Real Estate


Many people shy away from this topic; they think it’s something way out of their league. Deciding to buy a home requires a lot of planning and saving, it’s not a decision made over the night. Remaining a tenant is not bad especially if you can’t afford to buy a house just yet. However, deciding to stay a tenant forever without any plan to get your property is not a great idea.

Buying a house and continuous mortgage payment especially during the first year is capital intensive, but over time, you would begin to enjoy the benefits of the decision to buy. Living as a tenant has its advantages; however, becoming a homeowner has more advantages. Below are reasons why you should buy rather than rent.

Allows You Save Over Time

When you become a homeowner, the word ‘forced to save’ comes to play. For you to be able to make your monthly mortgage payments, you would keep a certain amount aside which would go into your home. Economically, this is a wise decision as it helps you build ROI and equity unlike when you pay for a rented apartment.

Creates Stability

Becoming a homeowner gives you a sense of balance and security. If you decide to get married or if you are already, owning a home eliminates the burden of moving from one location to another. When you become a homeowner, your kids grow up in a stable and secure environment.

Freedom Of Activities

Living in rented apartments limits what you can do. Many landlords have rules they put in place to keep their property running smoothly. When you decide to take a mortgage, it gives you the freedom to customize your space the way you like; it allows you to decorate, you can choose to invite guests over or even get a pet. 

Allows You To Get A Second Stream Of Income 

Deciding to take a mortgage allows you the opportunity of having a second stream of income. The property is yours, and you can choose to let out a room, rent out the garage, rent out a part of your yard or your driveway. The whole idea is that you can monetize your property without having to report to anyone.

The Cost Of Mortgage Remains The Same, Unlike Rent That Increases

Fixed mortgage rates do not increase irrespective of the economic position. Landlords are not bothered about if you got a salary increment or not at your job; they typically tend to increase the cost of your rent yearly. Paying for your mortgage is settling the bulk of your housing payments which helps you attain budget stability. 

If you are in doubt about which decision to make (rent or buy), speak to a real estate agent today to help you assess your readiness to own a home.


If you don’t have a lot of cash on hand to secure a home with a sizable downpayment, you might feel stuck. It’s quite a feat to be able to save up the 20 percent cost of a home that is generally required to purchase a home. Your options may seem limited when you want to own a home. There is one option that could be a good idea to consider when you’re in this situation. That’s the idea of finding a rent-to-own property. 


How Does A Rent-To-Own Property Work?


First, know that these properties are hard to find. That’s why you may not have thought of it as a first option. When you do find a property like this that suits your needs, you should know all of the ins and outs before you commit to the home. The agreement works just as it sounds, but there are always a few bits of extra text that can make the difference in any agreement in a rent-to-own property. 



Lease With A Purchase Option


With this type of agreement, you’ll need to pay what is called an option fee in order to give you the right to purchase the property at a later date. The seller is then required to sell the property to you as a tenant and apply the option fee to the price of purchase. If for some reason you have paid the option fee and decide to walk away from the property after a time, the money that you have paid as an option is simply lost. The option fee is usually a percentage of the purchase price ranging anywhere from 2-7 percent of the home’s price.  


Lease And Purchase Agreement Rolled Into One


In this type of rent-to-own agreement, both the tenant and the seller agree on fixed purchase price for the home, or agree that a purchase price will be determined at a later date through an appraisal. Everything is set up from the beginning including the closing date for the home.


This type of deal in a rent-to-own situation is often considered the better choice. Know that a fixed price option may put you in a better financial position than an appraisal option. You’ll have instant equity in the property when you buy it. This is especially helpful in high competition markets. In any other types of market, you may be better off with an appraisal. This ensures that you don’t overpay for the house.


How Your Rent Payments Apply


Rent-to-own gives you an advantage in that you get the added benefit of rent credits. This is where a percentage of your monthly rent payment is applied to the purchase price of the home. The amount of percentage that’s applied will be agreed upon with your landlord ahead of time.


While a rent-to-own option to purchase a property can be a bit more complicated than other ways of purchasing a home, it can be a great way for people different financial situations to become home owners. Make sure you go over everything carefully before you sign anything so that you fully understand the agreement you’re entering into.       

     





Renting is a short-term solution to finding a place to live. It can be a good way to move into a new area and live inexpensively for a short period of time. But financially, renting doesn’t make much sense as a long-term plan.

Owning a home is a valuable asset--one that is likely to rise in value over time due to inflation and increasing land value. When you pay rent each month, your only return on investment is that you have a place to live. With home ownership, however, your mortgage payments go toward something you can sell later on.

Deciding if you’re ready to buy a house is not an easy task. Not only do you need to ensure that you’re financially prepared for homeownership, you also need to determine if it makes sense for your personal and professional life.

In this article, we’ll talk about some of the ways you can tell if it’s a good time to take the plunge into the housing market or if you should keep renting.

Where do you see yourself in five years?

Aside from being a question you’ll likely be asked at a job interview, this is also something you should ask yourself before considering buying a home. When you buy, you’re making a down payment, paying closing costs, and devoting a lot of time and energy into the process.

Initially, it typically costs more to buy than to rent. But, over time, you’ll likely end up paying less for your mortgage payments than you would for a 1-bedroom apartment. Furthermore, those costs go towards an important financial asset.

A big question you should ask yourself when deciding whether to rent or buy is how long you plan on staying in your next dwelling. Typically, if you plan on living there for over five years, it could be a good idea to buy.

To find out which makes more sense for you, try out this useful Rent vs Buy calculator.

What type of lifestyle do you want to have?

Owning a home means caring for a home. If you want to focus on your career or education, you might not have time or funds to pour into maintaining a home. It’s important to remember that home maintenance isn’t just a matter of mowing the lawn every other week. You’ll also have to be prepared to spend on hiring professionals for issues like plumbing and electricity.

Calculating whether it makes more sense to buy a home or rent an apartment can be difficult because there are a number of variables when it comes to buying a house. Closing costs, down-payment, property taxes, HOA fees, should all be figured into your calculations. On top of that, you’ll need to consider the state of the housing market, whether you can get a good interest rate, and what type of mortgage you can receive.

If you want to live in a large home and you want to do it sooner rather than later, you might want to rent and save for a longer period of time.

However, if you’re happy in a small house and don’t need lots of storage space and bedrooms, taking a small mortgage can be a good investment.

That’s a lot of variables to consider, but fortunately this calculator from the New York Times makes it easy to plug in your numbers.


You may be considering buying a home but it is hard to know if you are ready to be a homeowner. It can be a big step. Buyers that educate themselves on the process and set realistic expectations have the best experiences. To gauge whether or not you are ready to own your first home you should ask yourself some serious questions.
  • Are you in a lease or is your living situation easily changed?
  • Do you need to remain in your current community or would you be willing to move?
  • Do you have the time and resources necessary to make your first home purchase a success?
If you have answered these questions favorably you may well be on your way to homeownership. The next step is to evaluate your financial situation. Here are some questions to check your financial readiness.
  • Do you have a steady source of income?
  • Do you know your credit history?
  • Do you have a down payment ?
  • Are you ready for the financial responsibilities that coincide with home ownership?
If your answers to these questions are positive then it is time to get the loan process started to see how much you can afford. A reputable lender will give you realistic expectations and many offer a free consultation for buyers seeking pre-approval. Now it is time to start your search. Working with an agent that you trust and are comfortable with is very important. My skills include educating you about the buying process, negotiating, having your best interest in mind and helping you find a perfect first home while hopefully saving you time and money.

Living in an apartment can sometimes be a frustrating experience. Paying rent every month makes you feel like you are throwing money away. Today's housing market makes it a great time to buy and in some cases you can buy a home for less money than you are paying in rent. Living in an apartment with tenants above or below you in some older apartments can be noisy. Single family homes do not have this problem, as none of the walls in your home will be attached to any other home in your neighborhood. This in turn means that you will have more privacy, and more importantly, there will be less noise coming from your neighbors, no matter what time of the day it is. Another reason why owning your own home is so great is because you will generally have your own yard, allowing you to have outside furniture, gardens and entertain which can be harder to do in an apartment When it comes to shopping for a home, it is important that you do a good amount of research beforehand. While single family homes do have a lot of advantages, you have to make sure to take your time and find that perfect home for you. Some things to think about is location, neighborhood, schools, and being close to amenities like shopping, restaurants or other places that may be important to you. One of the best ways to research for homes is on this website. This website is updated every 15 minutes with new listings, price changes, back on markets and open houses. This will allow you to easily browse through homes for sale until you find the perfect home for your needs. Bottom line is buying a home today can be a great invest down the road and can come with a lot of benefits over renting. Feel free to call if you would like help in buying or selling your real estate.



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