Why You Should Buy, Not Rent Your Chatham-Kent Home

Often, first time homebuyers in Chatham-Kent struggle with the idea of buying rather than renting. Sure, renting a property takes some of the stress out of being a homeowner, but in essence, you're throwing your money out the window. Renting, particularly in the Chatham-Kent real estate market where prices and rates are low, should be seen as a temporary fix, or if you can find a dirt cheap rental, a way to save money for the short term, while you look for a property that is a long term solution. Because I'm a Chatham-Kent real estate agent, I expect you're thinking I'm telling you to buy for selfish reasons, but in fact, the person who stands to gain the most in buying is you. Here's why:

Build Equity and Value Each Month

When you buy a home in Chatham-Kent, you’re instantly building equity, and growing a future investment, Sure you’re still paying, but it’s for a purpose other than simply putting a roof over your head. When renting, what are you getting? If you rent for the next 20 years, at the end of it, you'll simply have an empty bank account. If you make mortgage payments to own for the next 20 years, sure, you might still have an empty bank account, but at the end of it, you'll also have a property you can sell again to either make your money back, or perhaps reinvest as you move up the property ladder. Surprisingly, in Chatham-Kent you can often find properties that will keep your mortgage payments similar to a months rent. Let your Chatham realtor know your price range, and they’ll help you find a property that fits.

Take Control of Your Living

Do you want to rip down those ugly blinds, or replace that old stained carpet? If you’re renting, you’ll need to clear that with your landlord, and renovate to appease their tastes, not yours. And don’t expect them to foot the bill entirely; after all, you’re the one who asked for the change. If you own a home in Chatham-Kent, the decision is all yours. Ownership gives you creative control of your home. Plus, when making improvements, you're improving your own investment, not someone else's. Along with having control, you'll also guarantee your privacy as an owner. As a renter, your landlord has rights to visit the property and "check up on things." As an owner, you're the only person you need to answer to, and you'll be free of pesky interruptions.

And Back to Capital and Inflation

Money talks when it comes to the buying versus renting debate. Many people who rent think they're saving big, when in the long run, they're actually losing. Typically in the Chatham Ontario real estate market, there is both capital appreciation and capital gains. Meaning, over the years, property values in Chatham-Kent naturally rise. So if you were to sell your property in 10 years, you are almost sure to get more money than what you paid for the home, especially if you've taken good care of the property. In terms of inflation, buying again trumps renting. Rent inflates yearly with the rest of the economy. For example, if you pay $800 per month this year, you can almost guarantee you'll pay $825 next year and $850 the year after. Most mortgages on the other hand, are fixed for a specific term. This means that your mortgage payments are guaranteed to remain the same over a certain time period.

Whether you’re deciding to rent or buy, what we’ve discussed above is only the tip of the ice burg when it comes to fully understanding real estate in Chatham-Kent. If you need more help, call me at 519-360-0141, I’m an experienced Chatham-Kent realtor and I’d be more than happy to help. Or, you can continue browsing my Chatham-Kent real estate resources or read more tips for home buying in Chatham-Kent.