Rent or Buy in Vancouver

Rent or Buy in Vancouver

To Rent or Buy in Vancouver is a common question we receive from our buyers and it’s actually a really hard one to answer.

There are tons of contradictory facts out there, such as;

– The market is crashing, I’m going to rent until it hits the bottom

– Why waste money on rent when you can be paying off a mortgage ?

All fair facts BUT it really depends on your personal situation and future plans.

So…. we break it down into 3 main questions to ask yourself;

1. Downpayment ?

Minimum down-payments are 5% of the purchase price. If you want to buy a place worth $400,000 you’ll need $20,000 down. You don’t have enough saved up yet ? Then you should RENT, simple as that. If you have your 5% + down, then move on to question #2 but I would always suggest saving up more downpayment to keep your monthly payments  lower. That way you can still have a life.

At 20% down you don’t have to pay CMHC insurance.

2. Job Security ?

If you have a solid job and you feel it’s fairly secure for a long term period (3-5 years) then you can move onto question #3. But if you hate your job, you’re planning on quitting or getting fired then I would continue to RENT until you find something more secure.

3. Lifestyle ?

Do you think you know where you want to live ? Have you always dreamed about living downtown but you’ve never spent a night down there ? It’s a serious question because in today’s market you can’t change your mind next year, sell and make all your money back. You need to be in the mind set to live somewhere for atleast 3-5 years to guarantee any equity gain, or atleast break even. So……. if you are unsure of where you want to invest, I would suggest RENTING in that specific location and get a feel for the area.

If you have your 5% + down, you have a super secure job that you love, and you know exactly where you want to live for the next 5 years then it’s a great time to BUY !!!

You just want to make sure you buy something solid, negotiate the best price possible, and don’t be in a rush. Having the right agent, with tons of construction and design experience is priceless. Call, text or email theMACNABs anytime.

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