When looking at cars, the decision really comes down to usage and how long you look to keep your vehicle. If you are a person that likes a new car every 3 or 4 years and you do not put a lot of mileage on a car then a lease might be the way to go, as it will allow you to get more vehicle for less money. However, for those who are more on the go or say a hockey parent then a lease is out of the question as you are sure to go over your miles which will cost you additional money or put you into the position of having to purchase the vehicle at the end of the lease or pay a huge penalty. The decision comes down to personal circumstance and this can be said for homeowners. The truth is that most home- owners will start out leasing and the decision to purchase a home, like a car, be driven by personal circumstances. Very much like buying a car, home ownership has its benefits, but it also has its drawbacks. The cost of owning a house increases over time as home repairs start to come into the cost equation plus as the population ages more and more people are moving from home ownership to leases or renting condos and apartments because they no longer want to worry about the yard or if the roof will last another year.
and you do not have the tax advantages that our neigh- bors to the south have.
In the U.S. Trulia, an online residential real estate site for home buyers, sellers, renters and real estate profession- als, has been compiling the report for years, and buying is now a better bargain relative to renting than in any year since 2012. This is because the low mortgage rates have helped offset rising home prices at a time when rents have continued to rise. Also in the U.S. the mortgage-interest tax deduction, which provides homeowners annual tax breaks also makes ownership a better option. Given the current conditions in the U.S., Trulia chief economist, Ralph McLaughlin contends that buying will probably be a better deal well into the foreseeable future. “Nationally, we don’t think it will become cheaper to rent than to buy, because of the tax advantages of home ownership.” Mortgage analysts will always tell you that for the best bang-for-your-buck, it’s better to buy than to rent. However, with lower interest rates that might be the case. However, once all costs are factored in the decision becomes more of a personal decision to what works best for you and your lifestyle and where you call home and how you drive there.
If you are in Canada than recent changes to government policies on lending have made it more costly to purchase
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NOVEMBER 2016 • SPOTLIGHT ON BUSINESS
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